Online small business lending company OnDeck conducted a survey of more than 1,200 small business owners in the U.S. in March 2019 to determine the impact of tax changes resulting from the Federal Tax Cuts and Job Act on their businesses. The tax cut totaling $1.5 trillion went into effect in January 2018.
The findings reveal that 37% expect a positive impact, 21% a negative impact and 41% expect no change.
When asked about which of the tax changes will be most beneficial to small business, 47% of the respondents said it is the 20% qualified business income deduction, 19.9% said it will be the revised depreciation method and 10% said it would be the expanded options for expensing business property and business credit for small business owners who provide paid medical and family leaves.
In terms of investment, 88% plan to continue to invest in their businesses. Their planned investments for 2019 include new equipment purchases or leases, hiring of more workers, payment of existing debt and advertising and marketing.
The survey also found that 52% of respondents are either somewhat or very optimistic that they will grow their business in 2019. Only 11% reported being somewhat or very pessimistic. According to OnDeck Chief Revenue Officer Andrea Gellert, it is too early to determine the exact impact of the tax cuts. The tax changes will also have different effects on different industries.