Results of a Capital One survey revealed this week that small business owners are uncertain about the impact of recent tax reform legislation.
Officials said the Small Business Growth Index, a biannual survey of 500 small business owners (SBOs), determined 52 percent of businesses expect to pay the same or more in taxes and only 36 percent believe their taxes will decrease in 2018.
“Small business confidence continues to rise with more than half of small business owners expecting a profitable 2018,” Celia Edwards Karam, head of small business banking at Capital One, said. “As such, we’re seeing many small business leaders and entrepreneurs focus on industry challenges such as taxes, technology, and diversity.”
The survey also noted of the 36 percent of SBOs who believe they will pay less in taxes, many plan to reinvest the funds to grow their business.
Officials said the top three areas where businesses expect to invest funds include purchasing new equipment, contributing to their business savings and raising employee wages.
Capital One officials said the Small Business Growth Index Survey was conducted by the market research and business intelligence firm ORC International, noting for the telephone study ORC interviewed a national sample of 500 for-profit small businesses.
Small businesses are defined as those with a total annual revenue less than $10 million.