More Evidence Taxes Matter

The TaxProf blog reports on a new study (subscription required) showing that taxes play a significant role in small business failures. (H/T The Entrepreneurial Mind) While we can't get the study, TaxProf quotes the key conclusion:

Consistent with the growing tax burden on small-business owners, as well as the growing body of evidence linking higher tax burden with limited entrepreneurial growth and higher closure rates, this study has found that tax problems constitute an important reason for bankruptcy filings for a sizable number of entrepreneurs. Interestingly, those entrepreneurs that attribute their business collapse to tax problems do not come from disadvantageous background. Instead, the average entrepreneur in the bankruptcy sample that has faulted tax problems for his financial woes was typically older male, white, native-born, well-educated and an experienced business owner. Nonetheless, the typical entrepreneur with tax problem in the bankruptcy sample was facing enormously higher debt burden with more than five times as much debts as other entrepreneurs in the bankruptcy sample.

And, Floyd McKay writes at CrossCut that Oregon business leaders will likely seek to reverse the legislature's recent tax hikes.