Higher Taxes worry U.S Small businesses

National Federation of Independent Business said that 73% of U.S SMBs don’t consider the present situation to be apt for expansion of their businesses. When asked the reason for it, 66% cited weak economy, and 18% cited political uncertainity. The group of owners in the “optimism index” were found to be at all time low. This decline was continuing from 2006 till date. It was 103.7 in 2005, which is reported to be a five year high, but now in 2008 it was found to be below 90.

According to the survey, the small businesses were concerned about the higher taxes. Expiration of administrative tax cuts by Bush government, health reform bills and VAT are found to be major concerns for SMBs. And the latest borrowing by the government of amount $1.8 trillion last year, this year $1.5 trillion and still continuing in to the future is leading fear and pessimism among the small business owners.

The present situation gives no hope for the small businesses regarding the betterment of their businesses. This is the reason why there is decrease in points of optimism index.

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