Report: SMBs Prefer Tax Cuts to Stimulus Money
A survey from SurePayroll finds small business owners think the Obama administration is out of touch with small business.A survey by Glenview, Ill.-based payroll service SurePayroll suggests small to medium-size business owners would rather see President Barack Obama cutting taxes on midmarket companies instead of injecting billions of dollars into the economy. The survey found three out of four small business owners say they would rather see the government enact simple tax cuts than the recent stimulus initiatives.
The majority stated the stimulus initiatives are the wrong way to approach improving things, indicating that President Obama has not convinced small business owners that his administration understands the real triggers behind jump-starting the small business economy. More than 64 percent of survey participants indicated that none of the recently enacted stimulus provisions for small business would apply to their own company.
The survey found most business owners don't believe the provisions apply to them, and even if they did, they don't know how they would take advantage of them. That lack of communication may help explain why more than 60 percent rated Washington, D.C., as failing to help the small business economy with the recent stimulus provisions, giving the administration a four or below on a scale of one to 10 (one being not at all effective and 10 being most effective for helping spur small business growth).
SurePayroll President Michael Alter said the administration would be wise to listen to what small business owners are saying, noting small businesses employ an estimated 59 million members of the U.S. workforce. "Right now they're saying that they need simple tax cuts - not more provisions that don't seem relevant," he said. "Not only does the administration seem to be out of touch with the small business market, but Obama's team needs to reconsider their communications strategy, as those who may be interested in taking advantage of the provisions don't know how to."
Alter said the Obama administration needs to focus on ways to improve communication with SMBs on how they can take advantage of obtaining loans/capital as a result of the stimulus plan. While some businesses could benefit from the stimulus plan, an overwhelming 72 percent majority said they would have no idea how to apply for or access loans or capital as a result of the recent small business stimulus initiatives.
"The government is trying to help small business, but they're headed in the wrong direction," said Alter. "Now it will just depend on whether or not they choose to listen to this valuable feedback from small business owners."