Quarterly spotlight

Many small business owners anticipate benefits of tax reform

Nearly half of all small business owners believe tax reform will help their business grow, and they are twice as likely to think it will benefit their business (47%) versus business owners who think it will hurt (23%) their business. About 14% believe it will have no impact and 16% were unsure.

Nearly half of all small business owners believe tax reform will help their business.

A majority of small business owners (54%) also believe tax reform will help the national economy. This is double the number (27%) of small businesses who think it will hurt the economy. That optimism is even higher among American manufacturers, nearly two-thirds (65%) of whom believe tax reform will help the U.S. economy.

Small business tax
reform sentiment


Although positive sentiment around tax reform is broad, the level of enthusiasm varies depending on demographics, region, and business size.

Women-owned businesses are less confident than men-owned businesses about the benefits of tax reform. About 44% of women-owned businesses believe it will help compared to 31% who believe it will hurt their business (that compares to 48% of men-owned businesses who think it will help and 21% who think it will hurt). Confidence drops even further for minority-owned businesses, only a third of whom (30%) see tax reform helping versus 41% who believe it will hurt their small business.

Small businesses in the Northeast (58%) and South (52%) are the most optimistic about what tax reform will do for their business compared to small businesses in the Midwest (41%) and West (37%).

Small businesses with over 20 employees are almost four times as likely to think tax reform will help versus hurt their business (51% and 14%, respectively). Businesses with fewer than 20 people report a two-to-one (47% to 23%) ratio that tax reform will help rather than hurt their business.

Will Tax Reform
Help or Hurt?

Tax reform will make the national economy skyrocket. People will have their own money back in their pockets and do what they want with it. Personally, I’ll save a couple hundred thousand dollars a year.

Black Diamond Stores/Riggs Oil Co.
Big Stone Gap, Virginia

I am not sure, and that is part of the problem. There is a lot of uncertainty…And trying to get my accountant on the phone is near impossible because they are scratching their heads trying to figure it out too.

Culver City, California