What Would You Do With More Money?
What would you do if you had less taxes to pay and more money to spend? Would you save it? Or spend it on a home improvement, a vacation or some smaller luxuries?
For women business owners, the answer might be quite different. When women business owners have access to extra money, they usually pay off debt or reinvest it in their organizations to grow—by upgrading equipment, launching new products and marketing initiatives, hiring new team members, etc. But with today’s tax burden on small businesses, extra money is often hard to come by.
That’s why as women entrepreneurs file their taxes this month, we thought a “Taxes/Tax Reform” theme for this issue of NAWBO ONE was right on target. In it, you’ll find an article from Congressman Kevin Brady on what’s being done to make pro-growth tax reform a reality, plus a Q&A with our NAWBO National Board Member Loreen Gilbert, who has spent more than 20 years creating successful financial strategies for her clients. We also give an overview of important 2017 tax law changes, as well as ask a few of our members to weigh in on the question, “If you could reform anything about tax laws for small business owners, what would it be and why?” and of course, they share what they would do if they saved on taxes.
Additionally, we know that 52 percent of our members say taxes is the advocacy issue that impacts their business the most and that one of the most powerful ways to impact important business issues, like taxes, is by having your voice heard. NAWBO members do this as part of NAWBO National and their local chapters, where the strength of our organization amplifies their voice by the thousands. Just last month, in fact, NAWBO National announced our support for comprehensive tax reform. In a letter submitted to Congressman Kevin Brady, Chairman of the U.S. House Ways and Means Committee, we asserted the need for comprehensive tax reform that understands the important role businesses of all sizes play in creating jobs and growing our nation’s economy, including women-owned businesses that continue to be a diverse and fast growing sector that would reap the benefits of such reform.
Because so many of our members have also showed interest in taking their advocacy efforts a step further on important issues like this, NAWBO has launched the NAWBO Academy for Public Service and is hosting an event in Virginia this June. The event will connect you with experts who will help you determine your best and most successful path into public service based on your business, your expertise, the issues you care about and your lifestyle. You can read all about it in this issue, and register to join us.
What would you like to see reformed when it comes to business taxes? And what would you do if you could save money when you file next year? I’d love to hear from you!
—Teresa Meares, 2016-2017 NAWBO National Chair
How Much Are We Paying?
A report issued by the Office of Advocacy of the Small Business Administration (SBA) shows that average effective tax rates range from 13.3 percent for sole proprietorships to 26.9 percent for S corporations. The effective federal income tax rate, says the SBA, is the actual amount of taxes paid by a firm as a percent of its net income. Sole proprietorships have the lowest effective tax rate, while corporations have the highest.