A new survey of more than 1,200 small business owners by OnDeck finds 37 percent of those surveyed expect the tax changes in the Federal Tax Cuts and Job Act to have a positive impact on their businesses.
Forty one percent of small businesses expect no change and 21 percent said they expected the tax cuts to have a negative impact on their business.
“The new survey from OnDeck indicates that it may be too early to truly assess the benefits of the tax changes to small businesses,” said
Andrea Gellert, chief revenue officer, OnDeck. “The reality is that there are many types of small businesses in hundreds of different industries. The impact of the tax changes will undoubtedly be different in some of those industries.”
The overall $1.5 trillion tax cut package went into effect in
January 2018 and represents the biggest overhaul of the U.S. tax code in more than 30 years.
The OnDeck survey indicates that 88 percent of small business owners are continuing to invest in their businesses, with 43 percent of respondents saying they would be investing more as a result of the tax cuts, while 45 percent said they would continue to invest the same.
As the April 15 deadline for submitting annual tax returns for 2018 approaches, there is strong consensus among small business owners on which one of the 2018 tax changes they see as best for their businesses. Forty seven percent of respondents said the new 20 percent qualified business income deduction would have the most positive impact.
The revised depreciation method followed at 19.9 percent with expanded options for expensing business property and the business credit for small business employers who provided paid family and medical leave tied for third place at 10 percent.
Snapshot: Where Are Small Business Owners Investing In 2019?
New Equipment Purchases/Leases – 63 percent
Hire More People – 46 percent
Pay Down Existing Debt – 46 percent
Marketing and Advertising –41 percent
Opening New Locations/Refurbishing Existing Locations – 18 percent
