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Janel Knight Trulear
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(617) 875-6581

The Tax Code Has Two Tiers, Small Business Owners Are Done Accepting It

79% of Small Business Owners Want the Same Tax Rules for Everyone. Policymakers Aren’t Listening

WASHINGTON, D.C., April 1, 2026 – During the first tax filing season under the One Big Beautiful Bill Act, small business owners say a two-tier tax system is putting them at a competitive disadvantage to large corporations, according to a new national survey of 602 small business owners in the Small Business for America's Future network. 

The survey drew from a balanced cross-section of the small business community: 28% of respondents identified as Republican, 26% as Democrat, 22% as Independent, and 19% preferred not to say. 

Just 6% of small business owners say the tax code treats them and large corporations equally. The rest see a system tilted against them, with 83% saying corporate tax loopholes give big companies an unfair edge. The survey also finds overwhelming support for closing the loopholes that let the largest corporations pay far less than the businesses on Main Street.

Large corporations use armies of accountants and lawyers to cut their tax bills through strategies most small businesses can’t access, including accelerated depreciation write-offs (55% of respondents were aware of this tactic), offshore profit shifting to tax havens (48%), and the round-tripping loophole (33%).

The round-tripping loophole allows large U.S. companies to offshore production to tax-haven subsidiaries and sell products back into the U.S. at reduced tax rates. By one estimate, closing this single loophole would save $69 billion over 10 years, money that could go toward deficit reduction or investments that strengthen small businesses and their communities.

“The tax code is broken, and small business owners know exactly who it’s broken for," said Anne Zimmerman, Co-Chair of Small Business for America’s Future and a CPA in Cincinnati, Ohio. “Small business owners don’t have teams of tax lawyers finding ways to cut their bills. They pay what they owe. And then they watch large multinational corporations use loopholes like round-tripping to slash their rate nearly in half. Seventy-nine percent of small business owners are telling Congress to fix this.”

Small business owners were clear that corporate tax avoidance hits their businesses and communities directly. Two-thirds (66%) said it puts small businesses that pay their full tax burden at a competitive disadvantage, and 62% believe it shifts a heavier tax burden onto small businesses and individuals. Nearly half (47%) pointed to reduced public investment in local infrastructure like roads and broadband, and 45% cited less funding for education and workforce development.

These findings come after Congress passed the One Big Beautiful Bill, a $3.4 trillion package that made permanent tax cuts primarily benefiting large corporations and wealthy taxpayers. Instead of closing the loopholes that put small businesses at a disadvantage, lawmakers added trillions to the national debt. Small business owners say the priorities are backward. 

Strong majorities back concrete steps to level the playing field:

• 79% support closing the round-tripping loophole
• 72% support the Close the Round-Tripping Loophole Act, legislation targeting large multinational corporations that shift profits from U.S. sales to foreign tax havens, reducing their tax rate to 10.5% instead of the 21% rate domestic businesses pay. The bill would only apply to corporations with over $100 million in revenue and would not affect small businesses.
• 75% support using the estimated $69 billion in savings to help reduce the federal deficit
• 54% say Congress should prioritize closing loopholes that benefit large corporations over small businesses, compared to just 2% who want to keep the current system as is

Of small small businesses surveyed, 60% employ four or fewer people and 28% operate as sole proprietors. Respondents spanned industries, age groups, and regions across the country.

To schedule an interview with a representative from Small Business for America’s Future, contact Janel Knight Trulear at janel@emccommunications.com or 617-875-6581.

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About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visitwww.smallbusinessforamericasfuture.org. Follow us onTwitter andFacebook. #SmallBizAF.