A small business owner told lawmakers earlier this week that his company spends $14,000 each year to comply with the federal tax code, representing the largest barrier to entrepreneurship.
Tim Reynolds, business owner of Tribute Inc., a software company in Ohio, told the House Business Committee on Wednesday that in addition to the thousands of dollars he spends on accountants to prepare taxes, his company spends about 40 hours a year filling out tax forms and making payments in order to comply.
Reynolds, who also testified on behalf of the National Small Business Association, a group that represents more than 65,000 members, said that 68 percent of businesses spend more than $1,000 a year on federal taxes.
“More than half say that federal taxes have a significant to moderate impact on the day-to-day operation of their business,” Reynolds said. “Weighing in at more than 70,000 pages, the tax code punishes work, investment, risk-taking, and entrepreneurship.”
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