Grand Canyon Times

In an op-ed published by the Daily Independent, Chad Heinrich, State Director of the National Federation of Independent Business (NFIB), called on Congress to make permanent the 20% Small Business Deduction, which is due to expire in 2025. Heinrich warns against what he describes as a potential "massive tax hike on small business owners" should Congress fail to act.

Heinrich argues that if Congress allows this deduction to lapse, it would suggest an intention "to enrich Wall Street and leave Main Street businesses behind." He emphasized that losing this deduction could lead to "the largest federal tax increase on small businesses in memory."

The op-ed underscores the financial pressures faced by small business owners amid record inflation. The cost of supplies and inventories has risen significantly for these businesses, becoming their second most pressing issue compared to its twelfth place ranking in 2020.

Congress originally enacted the small business deduction to create a more level playing field between smaller enterprises and large corporations. However, while tax cuts for big businesses were made permanent, those benefiting smaller ones were not.

Heinrich asserts that without this deduction, many small businesses may be forced into difficult decisions such as holding off on pay raises or benefits, halting growth plans, or even cutting jobs. Some might face closure due to increased financial burdens.

To prevent such outcomes, Arizona's small businesses are urging Congress to pass the Main Street Tax Certainty Act. This bipartisan bill aims at making the deduction permanent. Heinrich notes that stability is crucial for these businesses after several turbulent years and highlights the necessity of predictability for future growth.

Several Arizona congressional delegates back this legislation with Representatives David Schweikert, Juan Ciscomani, and Debbie Lesko co-sponsoring it in the House. The NFIB calls upon Senator Mark Kelly to support this effort against what they see as a looming tax increase on Arizona's small business sector.

Heinrich concludes with a reminder: "When we help small businesses, we help everyone."