Taxes Are Killing Small Businesses

America is home to more than 28 million small businesses that employ nearly 57 million workers.

Although small businesses lack the market power of large companies, they make up for this with flexibility and speed of development, allowing them to innovate quickly.

A study by the Small Business Administration found that during 2007-2009, small businesses produced 15 times more patents per employee when compared to large businesses.

U.S. small businesses accounted for almost two-thirds of the net new jobs created between 1993 and 2013.

Increasing business regulation and taxation correlates with fewer business startups.

Largely due to overly burdensome regulations, startup activity is below historically normal levels.

Manufacturing businesses with fewer than 50 employees pay 17% more per employee to conform to regulation than the average firm.

WATCH: “How Regulation Hurts Small Business”

From 2015 to 2016, the number of pages in the Federal Register related to final rules rose 56.5 percent — increasing from 24,694 pages to 38,652.

Despite promises that Obamacare would help small businesses and significantly increase job creation by the self-employed, startup activity is still below historically normal levels.

Manufacturing businesses with fewer than 50 employees pay 17% more per employee to conform to regulation than the average firm.

WATCH: Small business owner Dean Mixon on how regulation harms his business.

Large companies often support regulation for the strain it places on smaller competitors.

Small businesses must spend time and money complying with regulation, not fighting it. Big businesses and trade associations spent over $716 million on lobbying in 2016.

Examples include Enron supporting strict environmental protocols, and General Motors supporting clean air initiatives that boosted their profits.

WATCH: “How Regulation Hurts Small Business”

Small manufacturing firms face regulatory compliance costs that are 10 times higher on a per-employee basis than those faced by large firms.

Small businesses must spend time and money complying with regulation, not fighting it. Big businesses and trade associations spent over $716 million on lobbying in 2016.

Large companies often support regulation for the strain it places on smaller competitors.

Examples include Enron supporting strict environmental protocols, and General Motors supporting clean air initiatives that boosted their profits.

Government programs like the Export Import bank benefit multinational companies the most and often directly harm small businesses. Multinationals such as Boeing, GE, and Caterpillar received 75 percent of Ex-Im funding in 2013.

U.S. small businesses accounted for almost two-thirds of the net new jobs created between 1993 and 2013.

America is home to more than 28 million small businesses that employ nearly 57 million workers.

Even if small companies are exempt from some labor regulation, they can become barriers to hiring as the company attempts to grow.

President Obama enacted a regulation giving workers more overtime. But even proponents of the rule admit that employers would offset overtime pay with base wage rates, resulting in no change. This would also make employees less flexible, requiring them to log their hours and removing control over when they work.

WATCH: Hector Barreto on the burden of overtime regulations.

A study by the Small Business Administration found that during 2007-2009, small businesses produced 15 times more patents per employee when compared to large businesses.

Although small businesses lack the market power of large companies, they make up for this with flexibility and speed of development, allowing them to innovate quickly.