Main to remember
- Taxes were the greatest concern for small business owners in May, according to the Monthly Small Business Optimism Survey.
- The results of the survey arise as the Congress continues to debate the “big and beautiful” “” big “” bill by President Donald Trump’s “big” bill, who was criticized for adding to the deficit.
- Overall, the NFIB Small Business Optimism index increased for the first time this year to reach 98.8, after decreasing on tariff concerns.
While the congress continues to debate the legislative proposal for the signing of President Donald Trump, the owners of small businesses are becoming more and more worried about the lack of tax clarity.
The monthly survey of the National Federation of Independent Businesses (NFIB) on the optimism of small businesses has shown that taxes is the main concern for many business owners, as inflation closed. He also found that uncertainty among small businesses The rise in prices and tax policies has remained clear.
“The economy will continue to trip until the main sources of uncertainty are resolved. It is difficult to direct a ship in the fog,” said the report.
The optimism of small businesses increases for the first time this year
Overall, the NFIB declared that the optimism of small businesses had increased for the first time this year, to 98.8 in May after decreasing March and April in the middle of Concerns about American prices. The report has shown that prices had not fueled as much inflation anxiety among business owners as they have for consumers.
Instead, taxes was the main concern for 18% of corporate owners in May, update both inflation and the quality of work. Inflation is often the main concern of small businesses and has remained the greatest concern for 14% of owners in May. Taxes have not been the greatest concern for business owners since 2020, according to the report.
“This problem will probably remain in mind for small businesses in the coming months while the congress repels the details of its tax and expenses bill,” wrote the economists of Wells Fargo Jackie Benson and Ali Hajibeigi.
Trump’s budget bill creates uncertainty
The report arises as the Congress considers that Trump “Large, beautiful»Budget Bill, which would extend many tax reductions that were promulgated for the first time in 2017.
While the bill adopted the House of Representatives by a single voteSome senators have raised questions about their expense discounts. Elon Musk, CEO of Tesla, Once an ally of Trumphas also criticized legislation as abomination Due to projections, this will increase the budget deficit.
“The Congress has not yet adopted the Big Beautiful Bill, and Trump is still playing with the prices; the level of uncertainty increases,” said the report. “While prices could be a jumped road while countries negotiate trade agreements, the congress can do its share by passing the BBB as soon as possible to remove this piece of uncertainty from the table.”