by Ethan Faverino | Apr 19, 2026 | Economy, News
By Ethan Faverino |
The National Federation of Independent Business (NFIB) released a new report detailing the significant economic benefits and tax savings Arizona’s 706,640 small businesses will realize now that the 20% Small Business Tax Deduction has been made permanent.
The report also outlines additional federal tax relief measures signed into law that will support small business growth across the state.
According to the report, making the deduction permanent is projected to generate 26,000 new jobs annually in Arizona over the next 10 years, along with an annual increase in state GDP of $1.4 billion during the first decade. After 2035, the benefits grow even larger, with an expected $2.9 billion annual increase in state GDP and 49,000 new jobs created each year.
Nationally, the permanent deduction is expected to add 1.2 million jobs and $75 billion to U.S. GDP each year for the first 10 years, rising to 2.4 million jobs and $150 billion in annual GDP growth beyond 2035.
“Making the 20% Small Business Deduction permanent was a landmark win for Main Street — and Arizona small businesses are already seeing that benefit,” stated NFIB State Director Chad Heinrich. “But the conformity fight isn’t over, and every provision Arizona fails to adopt is a tax increase on hardworking small business owners.”
Since 2017, the Small Business Tax Deduction has allowed pass-through businesses to deduct up to 20% of their qualified business income. This relief has enabled small businesses to expand operations, hire more workers, invest in employees, and strengthen their communities. The deduction was originally scheduled to expire at the end of 2025, which would have resulted in a significant tax increase on nine out of ten small businesses.
On July 4, 2025, President Trump signed legislation making the 20% Small Business Tax Deduction permanent. This action provides long-term certainty for small business owners, allowing them to retain more of their earnings to reinvest in their operations rather than sending additional funds to federal and state governments. It also helps level the competitive playing field against larger corporations.
In addition to the 20% deduction, the legislation includes several other key provisions. The Section 179 small-business expense deduction was doubled from $1.25 million to $2.5 million and will now be indexed for inflation, allowing businesses to immediately deduct the full cost of qualifying equipment and property.
The 100% bonus depreciation under Section 168(k) was permanently restored, enabling businesses to fully deduct the cost of qualified property in the year it is placed in service rather than spreading depreciation over many years.
Lastly, the estate tax exemption was permanently increased to $15 million for individuals and $30 million for married couples filing jointly, with inflation adjustments. This change helps family-owned small businesses avoid being forced to sell or liquidate assets to pay taxes upon the owner’s death.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Apr 18, 2026 | Economy, News
By Ethan Faverino |
Small business optimism weakened in March as a sharp drop in reported profit trends and softening expectations for business conditions weighed on the outlook, according to the latest survey from the National Federation of Independent Business (NFIB).
The NFIB Small Business Optimism Index fell 3 points to 95.8, slipping below its 52-year historical average of 98 for the first time since April 2025. At the same time, the Uncertainty Index rose 4 points to 92, significantly above its long-term average of 68.
“The 20% Small Business Deduction and other supportive small business tax provisions in the Working Families Tax Cut Act have had many positives for small business owners,” stated NFIB Chief Economist Bill Dunkelberg. “However, the dramatic spike in oil prices has spooked consumers and owners alike. Small business owners are having to absorb those higher input costs and pass them along to their customers.”
Key Declines Drive the Drop in Optimism
The decline in the Optimism Index was driven primarily by two key components: the frequency of reports of positive profit trends, which plunged 11 points to a net negative 25%—the largest contributor to the overall drop—and the net percentage of owners expecting better business conditions, which fell 7 points to a net 11%, marking the third consecutive monthly decline and the lowest reading since October 2024.
Other notable movements included:
Employment Index – Fell from 103.5 to 101.6. While still above the 2025 average (101.2) and historical average (100), the 1.9-point decline signals moderation in labor market conditions.
Capital outlays – Only 16% of owners plan capital investments in the next six months, down 2 points and the lowest level since November 2009.
Sales – A net negative 5% reported higher nominal sales in the past three months (down 6 points), ending four months of improvement. Expectations for higher real sales volumes over the next quarter eased to a net 7%.
Inventory – Plans for inventory investment turned more cautious, reaching a net negative 5%, the lowest since May 2024.
Labor Market and Compensation Trends
Hiring activity showed signs of cooling. A seasonally adjusted 32% of owners reported job openings they could not fill (down 1 point), though this remains well above the historical average of 24%. Skilled worker openings stood at 27%, while unskilled openings rose slightly to 12%.
A net 12% of owners plan to create new jobs in the coming three months, unchanged from February and near the long-term average. Compensation pressures eased modestly: a net 33% reported raising compensation; plans to raise compensation in the next three months fell 4 points to a net 18%—the lowest since July 2025. Despite the declines, both actual and planned compensation remain above historical averages.
Pricing, Supply Chains, and Business Health
Actual price increases ticked up, with a net 25% of owners raising average selling prices (up 1 point and well above the historical average). Planned price hikes, however, declined 4 points to a net 24%. Supply chain disruptions affected 62% of owners to some degree (up 3 points), with most reporting only mild or moderate impacts.
When rating the overall health of their businesses, 13% called it “excellent” (up 1 point), 51% “good” (down 4 points), 30% “fair” (up 4 points), and 4% “poor” (down 1 point).
Top Business Problems and Credit Conditions
Taxes remained the single most important problem for 19% of owners (unchanged and still ranked #1), followed by labor quality at 15% (#2), and inflation at 14% (#3).
Credit conditions stayed relatively stable but tight. The net percent expecting easier credit held at negative 5%, while the average interest rate on short-term loans edged down to 7.9%. Only 24% of owners reported borrowing regularly, a historically low level. Just 11% viewed it as a good time to expand (down 4 points and below the historical average).
“Small business owners are certainly keeping a close eye on the price of oil,” added NFIB State Director Chad Heinrich. “As those cost pressures grow and Arizona’s officeholders dawdle on tax conformity, small businesses are doing everything they can to minimize price increases for their consumers and stay competitive. It’s essential that state policymakers give our small businesses certainty and fully conform with the provisions of the Working Families Tax Cut Act.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Apr 17, 2026 | News
By Ethan Faverino |
Congressman Abraham Hamadeh (AZ-08) thanked his colleagues in the U.S. House of Representatives for the unanimous passage of his legislation to rename the United States Postal Service facility at 12208 North 19th Avenue in Phoenix as the “Officer Zane T. Coolidge Post Office.”
The bill, H.R. 3393, honors Phoenix Police Officer Zane Coolidge, who was shot in the line of duty on September 3, 2024, while responding to a larceny call near 16th Street and McDowell Road. Despite the heroic efforts of medical personnel, Officer Coolidge succumbed to his injuries three days later, on September 6, 2024, at the age of 29.
Officer Coolidge, a devoted husband and loving father, was a dedicated public servant who made the ultimate sacrifice while protecting his community. The suspect in the shooting was a man with multiple felony convictions who was on parole at the time of his crime.
The post office selected for renaming holds special significance: it is located across the street from Thunderbird High School, where Officer Coolidge graduated in 2013.
“The Phoenix Law Enforcement Association is deeply grateful for Congressman Hamadeh’s leadership in honoring fallen Phoenix Police Officer Zane Coolidge through the renaming of a United States Post Office,” stated President of the Phoenix Law Enforcement Association Darrell Kriplean. “Officer Coolidge represented the very best of our profession and made the ultimate sacrifice in service to his community. This designation serves as a lasting and meaningful tribute to his life, his service, and his legacy, while reflecting our community’s enduring respect for those who serve.”
“We also extend our sincere appreciation to Congressman Hamadeh for his continued commitment to law enforcement,” continued Kriplean. “His steadfast advocacy helps ensure that officers across Arizona have the support and resources necessary to protect and serve their communities.”
Congressman Hamadeh stated, “Officer Coolidge was a husband, brother, son, and father who died a hero. A true public servant, he sacrificed his life to fulfill his duty to protect and serve. Naming this facility in honor of Officer Coolidge is a small token of the tremendous appreciation we have for him and the countless men and women who have given our communities their last full measure of devotion.”
“I am proud to stand with the men and women of our police agencies. They deserve our full support and devotion,” concluded Congressman Hamadeh. “The sacrifice they and their families make to keep our communities free from crime is immeasurable and not to be taken for granted.”
This action will serve as a permanent memorial to Officer Coolidge’s service, sacrifice, and deep connection to the Phoenix community where he grew up and served.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Apr 16, 2026 | Economy, News
By Ethan Faverino |
Earlier this week, the Joint Economic Committee released its Monthly Fiscal Update, revealing that the federal government recorded a deficit of $164.10 billion in March 2026.
For the first half of FY26, cumulative deficits reached $1.169 trillion, meaning 32.01% of outlays were unfunded by revenues, with the government spending $1.47 for every dollar received in revenue.
The year-to-date deficit for FY26 is 10.60% lower than the $1.307 trillion recorded in the same period of FY25. Full-year deficits in FY25 totaled $1.776 trillion.
According to the most recent 10-year budget projections from the Congressional Budget Office (CBO), federal deficits are expected to total $1.853 trillion in FY26, $1.887 trillion in FY27, and $2.080 trillion in FY28.
In March, total federal net outlays amounted to $548.96 billion. Cumulative net outlays from the start of the fiscal year through March stood at $3.651 trillion.
This represents a 2.35% increase compared to the $3.567 trillion in net outlays for the same period in FY25. Full-year net outlays in FY2025 totaled $7.010 trillion. The CBO projects net outlays will reach $7.772 trillion in FY27 and $8.151 trillion in FY28.
Total federal net receipts in March were $384.86 billion, bringing year-to-date net receipts to $2.483 trillion. This marks a 9.84% increase from the $2.260 trillion in net receipts recorded in the comparable period of FY25. Full-year net receipts in FY25 were $5.235 trillion. The CBO forecasts net receipts of $5.596 trillion in FY2026, $5.885 trillion in FY27, and $6.071 trillion in FY28.
Key figures for March 2026 show net outlays of $548.96 billion, net receipts of $384.86 billion, and a deficit of $164.10 billion. For FY26 year-to-date through March, net outlays totaled $3.651 trillion, net receipts totaled $2.483 trillion, making the deficit $1.169 trillion.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Apr 15, 2026 | News
By Ethan Faverino |
Arizona Senate President Warren Petersen has filed a new legal brief in the case of Doe v. Sheridan, urging the Ninth Circuit Court of Appeals to uphold Arizona’s sex offender registration and monitoring laws, which are designed to protect children and families across the state.
The filing comes after a significant victory at the trial court level, where a federal judge rejected constitutional challenges and upheld Arizona’s lifetime registration and reporting requirements for convicted sex offenders.
The plaintiff, a convicted sex offender who pleaded guilty to crimes involving a minor and accepted lifetime probation and registration as part of the plea agreement, is now appealing the decision in an effort to weaken the state’s ability to track and monitor potential threats.
At issue is Arizona’s requirement that convicted sex offenders provide law enforcement with updated information, including online identifiers used on social media and other internet platforms. These provisions enable authorities to investigate crimes more effectively, deter repeat offenses, and safeguard communities from future harm.
“We already prevailed in federal court because Arizona’s law is constitutional and serves a clear public safety purpose,” stated Petersen. “These requirements give law enforcement the ability to track convicted offenders, investigate crimes, and prevent future harm. Weakening those safeguards does not make anyone safer; it only makes it easier for offenders to operate without oversight.”
When Attorney General Kris Mayes declined to defend the law in court, the Arizona Legislature intervened to protect these critical public safety measures. The trial court ultimately ruled in favor of the state, affirming that the registration requirements are constitutional and serve a vital public safety purpose.
“It is deeply concerning that Arizona’s Attorney General has chosen not to defend this law,” added Petersen. “When the state refuses to stand behind its own laws, especially those designed to protect children, the Legislature has a duty to act. We will continue defending these protections to ensure Arizona families are not left exposed.”
The Ninth Circuit will now review the case and decide whether to affirm the lower court’s ruling, preserving Arizona’s sex offender monitoring laws.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
