by Matthew Holloway | Feb 28, 2026 | Economy, News
By Matthew Holloway |
The National Federation of Independent Business (NFIB) Arizona issued a policy statement this week urging state lawmakers to prioritize tax certainty for small businesses in the upcoming legislative session.
In a press release, NFIB Arizona urged Arizona policymakers to “take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law,” and consider tax policy changes this year. The group argued that stable and predictable tax policy is essential for small businesses to plan, invest, and grow.
NFIB Arizona also highlighted concerns about potential tax increases and shifting tax policy, emphasizing that uncertainty in state taxes could discourage investment and expansion by small businesses across Arizona. The organization represents thousands of small business owners in the state.
In its release, NFIB Arizona pointed to the Arizona House and Senate GOP plan to protect taxpayers during the filing season, stating that lawmakers should avoid policies that could lead to higher costs or an unstable tax environment for small business operators.
“It’s good to hear that the legislative majority has the back of small business and will not allow for a surprise tax increase for the 2025 tax year,” NFIB State Director Chad Heinrich said in a statement. “That’s great for 2025, which is in the books.”
He added, “Small businesses are actively operating in 2026 without having the certainty needed to make investments now. We will continue to urge lawmakers to take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law so that Main Street can operate and grow their businesses with certainty.”
NFIB Arizona’s statement follows an ongoing debacle at the Arizona State Capitol over the state’s conformity with 2025 federal tax changes between the Republican-led legislature and Democrat Governor Katie Hobbs. Hobbs vetoed a Republican bill, HB 2785, which would have brought Arizona’s income tax law into full conformity with the federal Internal Revenue Code on Feb. 12. The group said tax certainty would help small businesses make long-term hiring and investment decisions.
At the time, the NFIB wrote in a statement, “Twice, the Legislature has taken responsible action to protect hardworking Arizonans from tax uncertainty. Twice, Governor Hobbs has chosen political gamesmanship instead—turning something as mundane as tax conformity into a partisan game.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Feb 28, 2026 | Economy, News
By Ethan Faverino |
As the 2026 Cactus League Spring Training season kicks off, bringing fifteen Major League Baseball teams to ten stadiums across the Valley, a comprehensive new analysis from the Common Sense Institute (CSI) highlights the significant economic benefits of this annual tradition.
The report estimates that the season, running from February 20 through March 24 with 225 scheduled games, will generate between $210 and $953 million in GDP for Arizona, driven primarily by new spending from out-of-state visitors.
“Spring training is when Arizona’s tourism industry truly steps up to the plate,” wrote Katie Ratlief, Executive Director of CSI. “Each February and March, fans from across the country bring new spending into our hotels, restaurants, and small businesses — supporting jobs, generating tax revenue, and driving measurable economic growth.”
According to the CSI and Cactus League, an estimated 1.8 million fans are expected to flock to venues all over the Valley. About 65% of attendees are projected to come from outside Arizona, injecting fresh dollars into the state’s economy.
Out-of-state visitors—including fans, players, coaches, team staff, and their companions—are anticipated to spend between $210 million and $590 million directly on categories such as lodging, restaurants and bars, groceries, in-state transportation, and game tickets. Key spending breakdowns include:
- Hotels: $74 million to $335 million
- Restaurants and bars: $46 million to $105 million
- Groceries: $23 million to $52 million
- Transportation: $10 million to $45 million
- Game Tickets: Approximately $52 million
This direct spending is expected to ripple through the economy, resulting in:
- Total business sales output: $341 million to $1.6 billion
- GDP Boost: $210 million to $953 million
- Personal income increase: $46 million to $556 million
- Disposable personal income boost: Up to $486 million
- Jobs supported statewide: 668 to 9,697
The report notes that, for the first time, favorable conditions—including strong attendance and potentially higher per-visitor spending—could push the overall economic impact beyond the $1 billion mark this year.
The influx is also projected to generate between $12 million and $33 million in additional State Transaction Privilege Tax (TPT)—Arizona’s equivalent of sales tax—providing a further boost to state and local coffers.
“Arizona’s strong policy environment and world-class quality of life make it possible to attract major recurring events like the Cactus League,” added Ratlief, “and it is a big part of why tourism is a consistent and powerful contributor to our state’s economy.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 27, 2026 | Economy, News
By Ethan Faverino |
In response to the U.S. Supreme Court’s February decision in Learning Resources, Inc. v. Trump, which held that the International Emergency Powers Act (IEEPA) does not authorize the President to impose tariffs, Joint Economic Committee (JEC) Chairman David Schweikert (AZ-01) issued a statement encouraging a shift toward a more stable and growth-oriented tax framework.
In a 6-3 ruling, the Supreme Court invalidated sweeping tariffs imposed under IEEPA, concluding that the statute does not grant the executive branch authority to levy import duties. The Court reaffirmed that Congress holds constitutional authority over tariffs and taxation, rejecting arguments that IEEPA’s provisions governing economic measures during national emergencies extend to imposing duties.
Chairman Schweikert emphasized the broader implications for America’s tax system amid rising federal spending. “As our nation’s spending continues to grow, we must be honest about the math,” he stated. “To sustain essential programs and protect our fiscal health, we need a tax system that produces stable, predictable receipts without stifling growth. Today’s ruling underscores the uncertainty in our current tax framework, uncertainty that limits investment, hiring, and innovation.”
Schweikert advocated for transitioning to a border-adjusted, destination-based cash flow tax (DBCFT) as a superior alternative to tariffs for promoting domestic production and economic competitiveness. “To bring greater stability and competitiveness to our economy, and address tax arbitrage arising from other countries’ tax policies, I believe the U.S. should move toward a border-adjusted, destination-based cash flow tax. In line with the goals of tariffs, a DBCFT supports U.S.-based production and American workers. But tariffs distort markets and reduce overall output. A destination-based cash flow tax achieves these same objectives through a more economically rational, growth-oriented framework.”
He highlighted key advantages of the DBCFT, including immediate deductions for business investments to encourage reinvestment and growth, taxation based on where goods are consumed rather than where they are produced, and border adjustments that tax imports while exempting exports.
This approach, Schweikert noted, discourages offshoring, provides businesses with predictability for long-term planning, and helps ensure stable tax revenues to support increasing federal expenditures.
“I will be holding a hearing on this important topic in the coming weeks,” he added. “America’s long-term prosperity hinges on our ability to keep U.S. companies competitive both at home and globally. A destination-based cash flow tax strengthens that foundation.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 18, 2026 | Economy, News
By Ethan Faverino |
The Joint Economic Committee released its Monthly Inflation Update for January 2026 last week, highlighting a modest cooling in consumer price pressures as headline inflation declined below expectations.
According to data from the Bureau of Labor Statistics (BLS), the Consumer Price Index for All Urban Consumers (CPI-U) rose 2.39% year-over-year in January, down from 2.68% in December 2025. This marks a continued easing trend and comes in slightly below Cleveland Federal Reserve’s forecast of 2.36%.
Core CPI-U, which excludes volatile food and energy components, increased 2.50% over the same period, compared to 2.64% the prior month. Month-over-month, headline CPI-U advanced 0.17% from December to January, while core CPI-U rose 0.30%.
Key drivers included a sharp decline in energy prices, which fell -1.47% month-over-month and -0.14% year-over-year, a drop of 2.44 percentage points from December’s year-over-year figure. Food prices, meanwhile, increased 0.19% monthly and 2.88% annually, up 0.38 percentage points from the previous year.
Inflation continued to ease across all regions in January 2026, though rates varied geographically. The Northeast posted the highest inflation at 2.8%, followed by the West at 2.7% and the Midwest at 2.4%, while the South recorded the lowest rate at 1.9%. Each region experienced a decline from December levels.
The report also highlighted positive developments in workers’ purchasing power. Real average weekly earnings for all employees on private nonfarm payrolls rose 0.53% from December to January and climbed 1.88% year-over-year. Real average hourly earnings increased 0.26% monthly and 1.25% annually. For production and nonsupervisory employees, real weekly earnings grew even more robustly at 2.16% year-over-year.
These gains reflect wages outpacing inflation, providing American workers with improved real income amid moderating price pressures.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 14, 2026 | Economy, News
By Ethan Faverino |
The latest survey from the National Federation of Independent Business (NFIB) reveals that small business optimism in the U.S. dipped slightly at the start of 2026. The Small Business Optimism Index declined by just 0.2 points in January to 99.3, yet it remains above the 52-year average of 98.
Among the index’s 10 key components, 7 declined, while only 3 improved. The positive standout shift came in expectations for real sales volumes, which jumped by 6 points, with a net 16% of owners now anticipating stronger sales in the coming quarter.
However, uncertainty notably climbed, as the Uncertainty Index increased by 7 points to 91. Much of this rise stemmed from more owners expressing doubt about whether the current environment favors business expansion.
“While GDP is rising, small businesses are still waiting for noticeable economic growth,” stated NFIB Chief Economist Bill Dunkelberg. “Despite this, more owners are reporting better business health and anticipating higher sales.”
In Arizona and similar regions, a cautious mood persists, with many business owners hesitant to pursue expansion. NFIB Arizona State Director Chad Heinrich noted that ongoing tax-related uncertainties are adding to these concerns, while NFIB data shows taxes are the leading problem for 18% of business owners.
“The optimism index remains stable, but small business owners remain cautious about the future and whether it’s a good time to expand their operations,” explained Heinrich. “The limbo Main Street Arizonans find themselves in this tax season only exacerbates their uncertainty. Small business owners need tax conformity from policymakers now.”
A new addition to this month’s report, the Small Business Employment Index, registered 101.6 in January—down nearly a point from December but still 1.5 points above its historical average of 100 and marginally higher than the 2025 average. This suggests the labor market for small businesses remains relatively balanced.
According to the NFIB Monthly Jobs Report, overall business conditions showed improvement in owners’ self-assessments, with 14% now rating their operations as excellent (up 5 points) and fewer classifying them as only fair (down 7 points to 27%).
Investment activity picked up as 60% of owners reported capital expenditures over the past six months—the highest share since late 2023—mostly directed toward new equipment.
On the labor front, challenges eased somewhat, with businesses citing labor quality as their top issue; the share fell for the third straight month to 16%, and unfilled job openings dropped to 31% (still above the long-run norm).
Inflationary pressures linger, however, as 26% of owners reported raising prices in January, and 32% plan increases in the next few months.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 10, 2026 | Economy, News
By Matthew Holloway |
Legislation aimed at easing regulatory barriers for next-generation nuclear power projects in rural Arizona advanced last week after clearing a key House committee.
The House Natural Resources, Energy, and Water Committee approved House Bill 2795, sponsored by Arizona Rep. Michael Carbone (R-LD25). The bill would limit the ability of county zoning ordinances to block small modular nuclear reactor projects once federal safety, permitting, and public notice requirements have been satisfied.
Under HB 2795, counties would be prohibited from denying zoning approval for a small modular reactor after a project completes federal design certification and site permitting, and once those approvals are formally presented to local boards of supervisors.
Small modular reactors, or SMRs, are a class of nuclear reactors designed to generate electricity on a smaller scale than traditional nuclear plants. They are typically factory-built, use standardized designs, and incorporate passive safety systems that rely on natural physical processes, such as gravity and convection, rather than active mechanical controls. Developers and regulators have promoted SMRs as a potential option for expanding reliable, carbon-free energy generation, particularly in remote or rural areas.
“Advanced nuclear reactors are coming, and we need to be prepared,” Carbone said in a statement following the committee vote. He added, “We need these projects to keep up with China and compete on national security.”
Carbone continued, “Educating the public remains the number one issue, but I believe when members of the public see the facts, they will understand the substantial benefits these projects can bring. Small modular reactors offer safe, clean, reliable power with high-paying jobs and opportunities for economic development—especially in our rural areas. HB 2795 ensures that when federal safety standards are met, and the public has had its say, local zoning cannot be used to block these critical projects that can secure our future energy supply.”
Carbone said the bill preserves public input through the federal permitting process while preventing counties from blocking projects after those regulatory steps are complete.
In a related op-ed, Carbone and James Taylor (R-LD29) wrote that modern nuclear reactor designs are significantly safer than earlier generations, citing advances in passive safety systems and next-generation technologies.
They wrote:
“Fears of radioactivity and nuclear fallout sparked protests and public opposition, leading countries like Germany to dismantle reactors that were operating safely. Those memories linger today and often fuel organized resistance in local communities whenever new reactors are proposed.”
“The fear is understandable. Lives were lost, radiation was released, and entire communities were evacuated, with some residents never able to return. As tragic as those incidents were, it is important to understand why they occurred and why modern reactor designs address the specific failures that caused them.”
In the op-ed, the lawmakers pointed to features such as passive cooling systems, non-pressurized designs, and fail-safe mechanisms intended to address the conditions that contributed to past nuclear accidents, including Three Mile Island, Chernobyl, and Fukushima.
The lawmakers also noted that advanced reactor concepts, such as molten salt and sodium-cooled designs, reduce reliance on active mechanical systems and external power sources.
Supporters of HB 2795 say the legislation aligns with broader efforts to expand reliable power generation, support rural economic development, and prepare for projected increases in electricity demand.
The bill now advances to the House Rules Committee before moving to the House floor, where it will be debated and voted upon.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
