For immediate release
Contact: Chad Heinrich, director of the state of Arizona, ch@chadheinrich.com
or Tony Malandra, director of senior media, anthony.malandra@nfib.org
Phoenix, Arizona, April 15, 2025 –The National Federation of Independent Businesses (NFIB), the main organization of defense of small businesses in the country, has published a new report describing the advantages that the tax deduction of 20% of small businesses will bring to Arizona If you have made permanent.
The report also highlights that the 678,000 small companies in Arizona could be faced with much higher taxes if the congress does not make the 20% of small permanent companies this year. The report describes the serious consequences for small businesses in Arizona and the wider American economy that would result from the expiration of the offer, highlighting the potential economic slowdown and the increased financial pressure on local businesses.
The report also highlights a contrast hitting tax rates between small businesses and their largest business competitors if the deduction is not made permanent. In Arizona, the C-Corp tax rate would remain at 25.9%, while the rate of small businesses would increase to 42.1%.
However, making the permanent deduction would lead to significant economic advantages, leaving the tax rate of small businesses on a level playground with its competitors. In addition, Arizona is expected to obtain 26,000 new jobs per year over the next 10 years if the deduction remains in place, including an annual increase in GDP of $ 1.41 billion for the first decade and $ 2.9 billion per year beyond 2035.
Consult the Arizona report here. For a two -page graphic of Arizona numbers, Click here.
“The loss of the deduction of small businesses would devastate small businesses from Arizona and the economic momentum of the state,” said NFIB state director Chad Heinrich. “Take a blow to the GDP of our state and miss tens of thousands of jobs each year is the serious consequence of the inaction of the Congress. We need the deduction to be made permanent. ”
The tax deduction of 20% of small businesses, a key provision of the 2017 law on tax reductions and jobs, allowed millions of small businesses to develop, hire employees and increase wages. If the congress does not act to make it permanent this year, nine small companies out of 10 will face a significantly higher tax burden, threatening jobs and economic stability at the national level.
Republican this press release to X here.
Follow the latest news from Arizona Small-Business on www.nfib.com. Follow us on x @nfib_az.
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For more than 80 years, the NFIB has argued in the name of the small and independent American business owners, in Washington, DC, and in the 50 state capitals. NFIB is a non -profit association, non -partisan and focused on members. Since our foundation in 1943, NFIB has been exclusively dedicated to small independent companies and remains today. For more information, please visit Nfib.com.
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