Grand Canyon Times

In a recent discussion with Fox Business, Chad Heinrich, the State Director of the National Federation of Independent Business (NFIB) in Arizona, highlighted concerns regarding a potential tax increase for small business owners. The issue at hand is the expiration of the 20% Small Business Deduction, which Congress has yet to make permanent.

Heinrich emphasized the impact on local businesses: “Not only are small businesses facing a significant tax increase if Congress lets this expire. But Arizona’s economic growth really hinges on Congress acting and making the 20 percent small business deduction permanent.”

A study conducted by Ernst & Young in collaboration with NFIB suggests that solidifying this deduction could result in substantial job creation within Arizona. The analysis predicts an addition of 26,000 jobs annually for the first decade and 49,000 jobs each year thereafter.

The 20% Small Business Deduction was initially introduced as part of the 2017 tax law. It aimed to provide smaller enterprises with competitive parity against larger corporations. This measure has been crucial for many small business owners navigating recent economic challenges but is scheduled to lapse at the end of 2025.

To prevent this potential financial burden on America's small businesses, NFIB supports the Main Street Tax Certainty Act, which seeks to make this deduction permanent.