EPISODE · Jun 1, 2026 · 10 MIN
How Tax Compliance Costs Hit Small Business Hardest
from The Tax Policy Podcast with Fexingo: Income Tax, Corporate Tax, and Fiscal Conversations · host Fexingo
Lucas and Luna dive into the regressive nature of tax compliance costs, revealing that small businesses spend 8 times more per dollar of revenue on tax preparation than large corporations. They discuss a 2024 study from the National Taxpayer Advocate showing small firms spend an average of $1,200 per employee on compliance versus $150 for Fortune 500 companies. Lucas explains how complexity from the Tax Cuts and Jobs Act and patchwork state laws disproportionately burdens entrepreneurs, and explores potential reforms like the Paperwork Reduction Act and a common-sense small business tax credit for compliance software. The episode closes with a look at how automation and the IRS' Direct File pilot could shift the landscape by 2027. #TaxCompliance #SmallBusiness #TaxBurden #IRS #TaxReform #Economics #Entrepreneurship #TaxPolicy #RegulatoryCost #NationalTaxpayerAdvocate #PaperworkReduction #DirectFile #TaxCutsAndJobsAct #ComplianceCost #FexingoBusiness #BusinessPodcast #TaxSeason #Bureaucracy Keep every episode free: buymeacoffee.com/fexingo
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How Tax Compliance Costs Hit Small Business Hardest
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