Businesses That Leave Money on the Table
Many small and medium-sized businesses are avoiding tax breaks created just for them to hire and expand because of associated costs and hassles, according to two entrepreneur experts.
"We understand Congress is trying to do something good for us, but we don't have time. You've got to make the next sale. You've got to try to pay your workers," says Tim Kane, chief economist of the Hudson Institute, and an entrepreneur.
Kane made the comments on CNBC's "Closing Bell" Monday.
"It usually costs more to try to figure out what you can get the benefit for, than what you get the benefit for," Kane went on to say.
Indeed limited time and resources ften prevent small- and medium-sized businesses from taking advantage of tax breaks, says Joseph Minarik, director of research for the Committee for Economic Development.
"If you want to get it right, you might have to hire professional help, you have to spend a lot of your own time. Both of those can be too much for the whole thing to be cost effective," Minarik argued on CNBC's "Closing Bell."
Available tax breaks for small- and medium-sized businesses include deductions and credits for energy-efficient buildings, health coverage, increasing research and raising domestic production.
The comments come amid growing concern about a looming "fiscal cliff." Small businesses are worried a combination of expiring tax breaks at the end of 2012, and new taxes taking effect in 2013, could hurt entrepreneurs.