{"id":10274,"date":"2017-10-25T06:50:38","date_gmt":"2017-10-25T06:50:38","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=10274"},"modified":"2017-10-27T06:54:42","modified_gmt":"2017-10-27T06:54:42","slug":"how-the-us-tax-code-bypasses-women-entrepreneurs","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/how-the-us-tax-code-bypasses-women-entrepreneurs\/","title":{"rendered":"How the US tax code bypasses women entrepreneurs"},"content":{"rendered":"

Caroline Bruckner<\/a>, American University<\/a><\/em><\/span><\/p>\n

As Republicans in Congress put the finishing touches<\/a> on a tax plan that\u2019s aimed at overhauling the system, there is one other reform they should consider: making the U.S. tax code fairer to women entrepreneurs.<\/p>\n

Currently, federal tax incentives targeted to help small businesses grow and access capital either effectively exclude or bypass altogether the majority of women-owned firms, according to groundbreaking research I conducted<\/a> on how the tax code affects women business owners through American University\u2019s Kogod Tax Policy Center. For the first time, my research considered specifically whether women business owners can (or do) take advantage of tax breaks intended for small businesses. <\/p>\n

Our findings uncovered a significant blind spot when it comes to women business owners and the U.S. tax code. In fact, our survey data \u2013 together with our review of existing tax research<\/a> on the topic<\/a> \u2013 suggest that many women-owned companies are unable to fully access more than US$255 billion worth of tax incentives Congress has designed to help small businesses. <\/p>\n

My question for lawmakers is this: Will Congress seize the once-in-a-generation opportunity to pass comprehensive tax reform that recognizes the challenges women business owners face and how we can help them through the tax code? <\/p>\n

A growing economic contribution<\/h2>\n

Since Congress last overhauled the tax code in 1986, the number of women business owners has spiked<\/a> from 4.1 million to more than 11 million at the end of 2016, making up more than a third of all U.S. businesses. They employ 9 million people, contribute $1.6 trillion to the economy and nearly every single one<\/a> is a small business. <\/p>\n

More recently, their ranks have swelled<\/a> at a rate five times faster than the national average for all businesses, surging 45 percent from 2007 to 2016 \u2013 a period that included the Great Recession<\/a>.<\/p>\n

Even more impressive than their rate of growth is the fact that women have achieved all of this without the full benefit of tax breaks targeted to small businesses. <\/p>\n

\n \"\"
\n The Small Business Administration, currently led by Linda McMahon, issued a report earlier this year that said women-owned businesses lag behind in revenue and employment.<\/span>
\n AP Photo\/Alex Brandon<\/span><\/span>
\n <\/figcaption><\/figure>\n

Tax myopia<\/h2>\n

Over the years, Congress has done a number of things to promote women\u2019s business ownership by passing legislation targeting discriminatory lending practices and promoting federal contracting and counseling opportunities for women business owners. <\/p>\n

For example, the Equal Credit Opportunity Act of 1974<\/a> outlawed discrimination in granting credit based on sex or marital status, and the Women\u2019s Business Ownership Act of 1988<\/a> supported women small business ownership and established the National Women\u2019s Business Council<\/a>. <\/p>\n

Also, the Small Business Reauthorization Act of 2000<\/a> set up a program to help women-owned businesses access federal contracts<\/a>. <\/p>\n

But lawmakers have been myopic in terms of the severe disadvantages women face accessing capital to grow their businesses, even as they\u2019ve repeatedly targeted this common problem among small business owners in the tax code. <\/p>\n

Earlier this year, the Small Business Administration\u2019s Office of Advocacy issued a report<\/a> that found that women-owned companies consistently lag behind in terms of revenue and employment. Other congressional research<\/a> has found that just $1 of every $23 in conventional small business loans goes to a woman-owned business. <\/p>\n

\n \"\"
\n Psyche Terry, owner of Urban Intimates, posses for a photo next to some of her products for sale at Indulge Your Senses boutique in Little Elm, Texas.<\/span>
\n AP Photo\/LM Otero<\/span><\/span>
\n <\/figcaption><\/figure>\n

For my report, \u201cBillion Dollar Blind Spot: How the U.S. Tax Code\u2019s Small Business Expenditures Impact Women Business Owners<\/a>,\u201d I worked with Women Impacting Public Policy \u2013 a nonprofit trade association devoted to promoting women entrepreneurs \u2013 to survey 515 women business owners and analyze how they use four key tax expenditures designed to foster small business growth and investment:<\/p>\n