"Nickel and Dimeing" Small Businesses

As states and municipalities scramble to find revenue in this tough economy, many are looking to small businesses to pay a greater share of tax revenues. For example, NY’s proposed budget would apply a range of new taxes to various items; the higher taxes could greatly depress the sales of products and services offered by convenience stores, clothing boutiques and other small businesses.

If small businesses are to be the saviors in this economy—hopefully creating new jobs as they have traditionally done and leading the way to increased consumer confidence—then piling on taxes on the very things that these businesses sell may raise some revenue in the short term but won’t help the situation in the long run.

Small businesses can check the impact of state taxes, utility costs, workers compensation, trends in state and local government spending, and other matters by viewing the 13th annual Small Business Survival Index.

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