High taxation was identified this year in the 2013 Lloyd’s Risk Index as the top risk by North American business executives. Greater than cyber-risk. Greater than the lack of customers and order cancellation. Although most recently healthcare reform has demanded center stage, surveys of small business owners routinely rank taxes their highest obstacle. Not only from their financial impact, but by the disproportionate share borne by small business owners. As one of our agri-business owners expressed to me a while ago, “where is our stimulus?”
The sad fact is that many small businesses generate impressive cash flow, only to lose it from layer upon layer of taxes. If that same amount was lost to investment losses, business owners would make quick modifications. But owners who lose the same amounts to taxes are hard pressed to reposition themselves. “We’re stuck” as one mentioned recently.
Or are they? Pension plans can help roll back some of those losses by generating tax deductions. They also can help whittle down overly large retained earnings, but we’ll leave that for another article.
If you would like to learn more about pension possibilities, we would love to hear from you.
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