Survey: Don’t Raise Taxes to Reduce Deficit

Most business owners favor smaller government and lower taxes.

August 21, 2011

Nearly two-thirds of small business owners (64%) believe tax increases should not be part of the federal government’s plan to reduce the deficit, according to The Small Business Authority’s July 2011 Market Sentiment Survey.

In addition, 58% of small business owners say lower taxes would not stimulate hiring for their businesses. The Small Business Authority conducts the Market Sentiment Survey each month to gauge the concerns of small business owners.

Other findings from the July survey:

  • 60.4% of business owners planned to expand their businesses or hire new employees in the next 12 months; and
  • 61.1% view the federal health care act as harmful to their business.

Most of the 1,100 survey respondents “clearly favor smaller government and lower taxes,” says Barry Sloane, president/CEO of The Small Business Authority, a CUNA Strategic Services alliance provider. “It was clear that business owners believe deficit reduction should be achieved through less spending by the government.”

In a March 2011 interview with Fox Business News, Sloane discussed the importance of deficit reduction to improve small business confidence and the economic outlook: