WASHINGTON--(BUSINESS WIRE)--Today CompTIA released a new study that takes a hard look at how taxes affect small and medium-sized businesses across the country. Through CompTIA’s TechVoice grassroots network and a partnership with TECNA and other technology organizations, CompTIA reached out to more than 400 small businesses to get an insider’s look at how these companies cope with their increasing tax burdens.
Overall, across both business size and form, opinions of the tax system were similar in one clear respect. An overwhelming majority of respondents noted that tax compliance is especially challenging for small and medium-sized businesses because they do not have the resources or scale to comply with complicated tax laws.
“Small and medium-sized businesses are the job creators in this economy,” said Todd Thibodeaux, president and chief executive officer, CompTIA. “Unfortunately many of these same companies are forced to divert resources away from operating their businesses toward complying with ever more complicated tax structures. CompTIA is working on behalf of our members and in partnership with TECNA to address these issues head on and find solutions for small companies so they can thrive in a straightforward tax environment.”
According to the study, small and medium-sized businesses wrestle with a number of costly and complicated tax provisions. Those surveyed cite payroll tax filings, alternative minimum tax requirements and employee retirement as some of the most difficult tax code provisions from a compliance perspective. This is especially worrisome because in the last ten years, 15 percent of small and medium-sized businesses report being subjected to a federal or state tax audit, adding to tax compliance costs.
“Simplifying the tax code, particularly payroll taxes for employees and employers, is a way to boost the economy,” said Steven Zylstra, president and chief executive officer of the Arizona Technology Council, a TechVoice participant. “Instead of grappling with cumbersome tax issues, our members can get back to business. These changes would provide incentives for employers that can lead to job creation and economic growth.”
Seventy-two percent of small and medium-sized businesses cite a reduction in payroll taxes as important or very important to their business. Respondents also cite corporate tax rate reduction and capital gains tax reduction as crucial federal tax code changes that would have a positive impact on their businesses. Regardless of size, respondents all feel that the current tax code is burdensome and overly complicated. Despite issues with the current tax code, members polled advocated for a simplification of the current system, as opposed to migrating to a completely new system.
CompTIA members will advocate for changes in tax policies, IT workforce development and an increase in access to capital for small companies during its legislative fly-in taking place November 1-3 in Washington, D.C. For information all year long regarding CompTIA’s advocacy efforts go to www.TechVoice.org.
About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. As a non-profit trade association advancing the global interests of IT professionals and companies, CompTIA is the recognized authority for IT education and credentials and the primary advocate for IT businesses and workers. Through its foundation, CompTIA also enables disadvantaged populations to gain the skills they need for employment in the IT industry. CompTIA’s vision of the IT landscape is shaped by more than 25 years of global perspective and more than 2,000 members and 1,000 business partners. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.
About TechVoice
TechVoice is a partnership of the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA), participating regional technology associations, and other technology related organizations. Collectively, TechVoice represents thousands of technology companies across the country employing millions of workers. TechVoice is dedicated to empowering and mobilizing the grassroots tech community to impact legislative and regulatory issues important to growth, innovation and job creation.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50052215&lang=en