Small business optimism has increased for the first time this year, according to a recent survey by the National Federation of Independent Business (NFIB). The NFIB Small Business Optimism Index rose to 98.8 in May, after declining on tariff concerns. However, taxes remain a major source of uncertainty for many business owners.
The survey found that 18% of business owners cited taxes as their top concern in May, while inflation anxiety ranked second at 14%. This is unusual, as inflation has traditionally been the biggest worry for small businesses. The NFIB report notes that tariffs did not fuel as much inflation anxiety among business owners as they have for consumers.
The increase in optimism comes despite concerns about President Trump’s “Big, Beautiful” budget bill, which would extend many tax cuts first enacted in 2017. However, some senators have raised questions about the legislation’s spending cuts, and Tesla CEO Elon Musk has criticized it due to projected budget deficits.
The NFIB report suggests that the uncertainty surrounding taxes will continue to be a major concern for small businesses over the next couple of months as Congress works to iron out the details of the tax and spending bill.
Source: https://www.investopedia.com/taxes-now-front-of-mind-for-small-business-owners-11751422