Small Business & Tax Complexity

Posted: Apr 18, 2007 5:08 PM

According to a NFIB Research Foundation Small Business Poll released today on Tax Complexity and the IRS, "88 percent of small-employer taxpayers used a tax professional to prepare their most recent federal tax return. For those employers who employ 20 or more people, the percentage that used a tax professional increased to 95 percent...61 percent of small-employer taxpayers typically consult a tax professional prior to making a major financial decision for the business."

Small business employer's stated that they have to use these tax professionals to ensure they comply with our incredibly complex tax system.

On a related note, John Stossell reported today that in Estonia citizens need only about 10 or 15 minutes to file their income taxes. Why, you may ask? In 1992, Estonia became the first country to tax everyone at the same flat rate. Right now, their flat tax rate is at 22%, and in 2009, it will drop to 20%. To learn more and for a good read, click here.