What Goes Around Comes Around
Conscientious consumers who want to help local entrepreneurs thrive may not need any extra incentive to support small businesses in their communities. However, that doesn't mean it isn't worth noting the tax benefits of buying locally compared to buying online or in other towns or cities.
Small businesses pay sales taxes to the city and county where the business is located, which means a significant amount of the money spent at local businesses is ultimately going to the community at large.
In addition, local businesses tend to hire local residents, who pay taxes on their incomes. Those taxes also benefit the towns and cities where workers live and work.
This ripple effect of supporting local businesses is one reason why the Small Business Administration estimates that, for every $100 consumers spend at a small business, $48 remains in the community.
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