Grand Canyon Times

The National Federation of Independent Business (NFIB), a prominent advocacy group for small businesses, has released a report indicating the benefits of the 20% Small Business Tax Deduction for Arizona. The report emphasizes that over 678,000 small businesses in the state may face increased taxes if the deduction is not made permanent by Congress this year.

According to NFIB, if Congress fails to extend this deduction, the tax rate for small businesses could rise to 42.1%, while the C-Corp rate would remain at 25.9%. This difference could have adverse effects on small businesses compared to larger corporations.

The report outlines that continuing the deduction could result in notable economic benefits for Arizona. It projects the creation of 26,000 jobs each year for the next decade and predicts an annual GDP increase of $1.41 billion initially, with this figure rising to $2.9 billion annually after 2035.

NFIB Arizona State Director Chad Heinrich warned of the potential negative impact on the state's economy if the deduction is not continued. "Losing the small business deduction would devastate Arizona’s small businesses and the state’s economic momentum," he stated. Heinrich emphasized the need for the deduction to be permanent to maintain economic growth in Arizona.

The 20% Small Business Tax Deduction is part of the Tax Cuts and Jobs Act of 2017 and has enabled many small businesses to expand and hire more employees. The NFIB asserts that nine out of ten small businesses would face higher taxes without this deduction, posing a risk to job security and economic stability.

For more information about the NFIB's advocacy efforts, visit nfib.com.

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