Homepage / Currency / On Main Street the bigger you are, the better tax reform looks: CNBC/SurveyMonkey
The flip phone is about to make a big comeback as foldable screen nears reality Here is what a student could have made if they invested their 2014 summer earnings in FANG stocks VW names interim Audi boss, seeking to steady brand after its CEO's arrest Here’s the fundamental error in Trump’s trade strategy Chip stocks dive on trade war fears as industry gets a majority of its revenue from China New home construction booms to a near 11-year high in May A dangerous dot-com era phenomenon is back and it's going to inflict pain, Jim Paulsen warns Netflix gets a $500 price target, the highest on Wall Street Apple is the big tech firm most at risk from a US-China trade war AT&T promises fewer ads, tailored programming after merger with Time Warner Stocks making the biggest moves premarket: VZ, TSLA, AAPL, WFC, T, SIRI & more Billionaire Howard Marks: Computers won't put the best human investors out of business CVS introduces prescription drug delivery as it braces for Amazon's possible entry Former turnaround exec Bozoma Saint John: Uber was 'the poster child for everything gone wrong' Trump told Tim Cook that US would not place tariffs on iPhones, but Apple's still worried Amazon's Alexa will now be your butler at Marriott hotels Billionaire investor Jim Mellon: Sharp sell-off in US stocks is the start of a 'very major correction' South Africa will avoid a ‘knee-jerk’ reaction to currency weakness, central bank deputy says Dow futures tumble as China responds to latest Trump threat North Korea's Kim visits Beijing as South Korea and the US halt military drills 'Belligerent' US trade stance could hurt America's iconic companies the most, Jim O'Neill says Irish central banker says it's too early for the ECB to discuss future rate hikes All global currencies will become cryptocurrencies, Circle CEO says Abu Dhabi Financial Group unit offers to buy Abraaj's investment management arm Beijing subways could get facial recognition and palm scanning tech, Chinese media reports Roche agrees to pay $2.4 billion to buy the rest of Foundation Medicine Japanese e-commerce company Mercari surges more than 70% in Tokyo debut European markets seen sharply lower as Trump threatens new tariffs China's central bank delivers surprise stimulus as trade spat with US worsens Shares of China's ZTE sink 23% after US Senate targets company in new bill Has a US-China trade war begun? Experts weigh in North Korean leader Kim Jong Un is in China on a two-day visit: Chinese state media China pledges it will fight back firmly if Trump goes ahead and publishes list of additional tariffs Trump reportedly told Apple's Tim Cook that iPhones will be spared from China tariffs Smartphone maker Xiaomi to postpone mainland China listing until after Hong Kong IPO Asian shares poised to edge higher despite trade jitters; oil prices rise Senate passes military funding bill that would reimpose sanctions on Chinese telecom ZTE Cramer Remix: Tariff headlines have investors flocking to these stocks Cramer's warning on recent tech IPOs: Be careful with their sky-high valuations Elon Musk sends company email about 'extensive and damaging sabotage' by employee Elon Musk sent an email to Tesla employees about another fire in its factory on Sunday Microsoft condemns 'forcible separation' of children from families after criticism of work with ICE Snap CEO Evan Spiegel says even his wife, Miranda Kerr, hated the app’s redesign UBS CEO: Blockchain technology almost a must have for business Bitcoin jumps after New York approves Square's Cash app for crypto trading Apple is worried about Chinese tariff retaliation that could hamstring its supply chain Elon Musk tells shorts on Twitter they have 3 weeks to cover Watch these drones string power lines along poles high above the ground SurveyMonkey confidentially files for IPO President Trump signs space junk directive aimed at cleaning up the cosmos Dropbox rises more than 8% adding to last week's gains President Trump directs Defense Department to 'immediately begin the process' of establishing 'Space Force' as sixth military branch Elon Musk hung out in the Netscape lobby in the '90s hoping to get a job Square gets regulatory green light for cryptocurrency trading in New York Domo drops below billion-dollar valuation in lead-up to IPO Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt With Twitch, Amazon tightens its grip on live streams of video games This fitness app wants you to have a personal trainer in your pocket Intel shares fall after small Wall Street firm downgrades chipmaker, predicting slower growth Rent-A-Center shares surge 22% in single day on buyout Snap CEO Evan Spiegel on Facebook imitations: 'The innovators win in the long run' Amazon to add over 1,000 jobs in Ireland in country's biggest staff boost this year Supreme Court mulls Apple's App Store commissions in antitrust case JP Morgan says buy Micron into earnings due to ‘robust’ cloud computing spending Germany's Merkel given two weeks to reach EU deal on migrants Disney is expected to add cash to its bid for Twenty-First Century Fox assets: Sources How to play rising interest rates based on your age Microsoft acquires education start-up Flipgrid in latest challenge to Google BJ's Wholesale expects its IPO to price at $15 to $17 a share Don't even think about investing without a diversification strategy: Advisor Boeing sell-off looks like the beginning of a correction, technical analyst says Mass facial recognition boom led by the Chinese government will mean big money for Nvidia, UBS says Goldman Sachs still sees oil rallying over $80 despite market concerns over key OPEC meeting Disney shares downgraded to sell on concern the battle for Fox has placed company in an unwinnable situation Chipmaker Mellanox nears truce with activist investor Starboard over board seats Rates are on the rise, but don’t fear for the stock market — yet We’re seeing the greatest asset inflation bubble in 20 years, fund manager warns Apple will automatically share a user's location with emergency services when they call 911 Investors still love equities but ‘market fragility’ could be ahead in the second half of 2018 Munich prosecutors say Audi CEO arrested on risk he may suppress evidence Lufthansa in contact with Norwegian Air, CEO says Martin Sorrell's reign over the ad industry 'has not been that glorious' Immigration fight has handed Germany’s Merkel her ‘worst crisis’ in more than a decade British bank CYBG clinches $2.3 billion takeover of Virgin Money European markets seen lower as China-U.S. trade tensions intensify Magnitude 6.1 earthquake kills three people, shutters factories in Japan's Osaka Google places a $550 million bet on China's second-largest e-commerce player Chinese tech CEO: A trade war would hurt 'a lot of American brands' Top VC news: Adyen goes public, Toyota investing $1 billion in ride-hailing giant Grab Japan exports accelerate in May, trade protectionism remains a risk Asian shares poised to slip after escalation in US-China trade tensions Ford plans to revive long-vacant Michigan Central station as hub for its self-driving cars Apple's new iPhone software lets you create an animated version of yourself — here's how it works Veteran tech investor sees record tech rally failing, turns to financials Amazon's Whole Foods deal has sent some retailers into the arms of Google Drone giant DJI is building a new headquarters as a 'floating community' with a giant sky bridge Greek PM Alexis Tsipras survives no-confidence vote in parliament UK national health service to get $26.5 billion boost post-Brexit, PM Theresa May says Just the fear of a trade war is straining the global economy Elon Musk tells Tesla employees that 'radical improvements' are needed to hit quarterly targets

Currency

On Main Street the bigger you are, the better tax reform looks: CNBC/SurveyMonkey

Small businesses across the country support the Republican tax reform plan, with 55 percent saying they are in favor of seeing a tax bill passed.

But when it comes to the level of support and enthusiasm, it’s not just multinational corporations where size seems to matter. The bigger a small business is, the more likely it is to support the tax changes being promoted by President Donald Trump and GOP leaders in Congress, and the more likely the business is to expect immediate benefits, according to the fourth-quarter CNBC/SurveyMonkey Small Business Survey, conducted with more than 2,000 small-business owners across the United States between Nov. 20 and Dec. 4, using the SurveyMonkey’s online polling methodology.

“Far from perfect,” said Jason Duff, a real estate entrepreneur based in Bellefontaine, Ohio (population under 20,000), echoing Sen. John McCain’s comment when he voted in favor of the Senate plan. “I’m still very much wanting to see it pass, but I do think it may benefit the investor or corporation more than the true small business,” Duff said.

The Senate plan incorporated more generous treatment for pass-through business income than the House plan did, with an effort led by Wisconsin Sen. Ron Johnson ultimately pushing up the percentage of business income to more than 23 percent that can be shielded by an owner.

Raymond Haller, tax partner at Grassi & Co., had said of the House plan, “It does not really help the small-business owner who is actively running his company. This tax reform bill is for the ultra-wealthy.” Haller was much more positive on the Senate plan: “It levels the playing field whether you’re an investor or a true owner.” He added, “November 2018 is right around the corner, and taxpayers will remember if the current administration helped them or hurt them, and business owners can have powerful voices.”

Outside estimates of pass-through business income have shown that it is a small number of large businesses that account for the majority of pass-through profits and economic activity, rather than true mom-and-pops. An overwhelming share of pass-through income is earned by those at the very top of the income scale — 70 percent of partnership income accrues to the top 1 percent.

What’s more, while 95 percent of small businesses are organized as pass-throughs (based on 2014 Treasury Dept. data) rather than traditional C-corporations, the CNBC/SurveyMonkey Small Business Survey found the most support (68 percent) for the tax plan among C-corps — which would receive the flat corporate tax-rate reduction to 20 percent. Sole proprietorships, partnerships and S-corporations — all versions of pass-through businesses — show less overall support for the plan.

Karen Kerrigan, president and CEO of the Small Business & Entrepreneurship Council, a lobby group, said the tax reform plan will drive economic growth and therefore higher revenue-growth potential for small businesses.

But Grassi is less sure the growth will be equally divided. He said for mature businesses “just chugging along,” the tax plan won’t be as significant as it is to investors and new enterprises that have the funds to commit to a lot of capital expenditures. “It’s a good thing to get new businesses, but for mature mom-and-pops, I don’t see it being any more stimulative than what is now in the economy. … Companies that commit to large capital expenditures will benefit the most,” he said.

The CNBC/SurveyMonkey Small Business Survey found that when asked what they were most likely to do with extra money received from a tax cut next year, the No. 1 response from small-business owners was “pay down debt,” chosen by 31 percent of respondents. Among the smallest firms, of 0–4 employees, 37 percent said they would use a tax-cut refund to pay down debt.

The survey also found that the economic outlook of small-business owners across the United States has not become more bullish, even as the prospects for tax reform improved during the survey period.

Kristie Arslan, founder and CEO of Popped! Republic, an Alexandria, Virginia-based gourmet popcorn company, said it’s “profoundly unfair” and “a bias towards big business” that corporate tax reductions are permanent while all the other tax cuts are scheduled to expire in less than a decade. But she is happy that at least for now the plan would put pass-through businesses on a level playing field with corporations. “Are these bills ideal? No. But it is a start to simplify the tax code and help us keep more of our money,” she said.

Simplification of the tax code is one aspect of tax reform that most small-business owners seem to agree does benefit all entrepreneurs, and the CNBC/SurveyMonkey data shows that it’s the smallest businesses that cite taxes most frequently as a critical issue.

“In terms of actual tax-code adjustments, there will be arm-wrestling and adjustments, but for me, cutting to the chase, the big thing is simplification for my small-business members and small business in general,” said Keith Hall, president and CEO of the National Association of Self-Employed. He said any tax reform making it more simple to do taxes is more important than the exact percentage of the tax reduction. “Just don’t make it take four weeks of our life to comply with the tax code,” Hall said.

The CNBC/SurveyMonkey Small Business Survey for the fourth quarter 2017 was conducted online from Nov. 20–Dec. 4, 2017, among a national sample of 2,043 self-identified small-business owners ages 18 and up, using the SurveyMonkey survey methodology.

Source: cnbc economy
On Main Street the bigger you are, the better tax reform looks: CNBC/SurveyMonkey

Comments are closed.