Independent Business Group Report Finds Arizona “Well-Positioned”

Independent Business Group Report Finds Arizona “Well-Positioned”

On Thursday, the National Federation of Independent Business released its monthly Jobs Report, which found that Arizona is well-positioned to beat its neighbors to full economic recovery.

“Early legislative action this year to enact COVID-19 liability protection for businesses followed by recently adopted, historic tax reforms for income and property taxpayers will feed the flames of optimism and build confidence in business owners–leading to more investment, hiring and growth of small businesses in Arizona,” said Chad Heinrich, Arizona state director for National Federation of Independent Business (NFIB). “While small-business owners remain in a struggle to fill open jobs, in Arizona our small businesses are seeing the support that comes from having a pro-small-business Legislature as our elected officials wrap up business at the State Capitol.”

According to NFIB’s report, 46% of small business owners reported job openings they could not fill in the current period, down two points from May but still above the 48-year historical average of 22%. Small business owners continue to struggle to find qualified workers for their open positions while raising compensation at a record high level.

A net 39% (seasonally adjusted) of owners reported raising compensation (up five points), a record high. A net 26% plan to raise compensation in the next three months (up four points), according to the report.

“In the busy summer season, many firms haven’t been able to hire enough workers to efficiently run their businesses, which has restricted sales and output,” said NFIB Chief Economist Bill Dunkelberg. “In June, we saw a record high percent of owners raising compensation to help attract needed employees and job creation plans also remain at record highs. Owners are doing everything they can to get back to a full, productive staff.”

According to NFIB, “the Jobs Report is a national snapshot not broken down by state. The results were based on 592 respondents to the June survey of a random sample of NFIB’s member firms, surveyed through 6/28/2021.”

Independent Businesses Join Arizona AG In Challenge Of American Rescue Plan

Independent Businesses Join Arizona AG In Challenge Of American Rescue Plan

Last week, the Small Business Legal Center for the nation’s largest and leading small business association filed an amicus brief supporting the Arizona Attorney General’s lawsuit against the federal government over a provision in the American Rescue Plan Act of 2021 that would prevent states from lowering their own taxes.

The American Rescue Plan Act of 2021 made funds available to states if and only if states agree to not pass any laws or take any administrative actions that decrease their net revenue, whether that decrease comes through tax credits, rebates, reductions in tax credits, or new or expanded deductions.

“Congress passed the American Rescue Plan to relieve some of the financial pressure caused by the pandemic, but a provision that blocks Arizona and other states from cutting taxes is eroding state sovereignty and hurts local businesses,” said Karen Harned, executive director of the NFIB Small Business Legal Center, which filed the brief today in the U.S. District Court of Arizona.

In a March 25 news release announcing the filing of his lawsuit, the Arizona Attorney General said, “It’s unacceptable for the federal government to commandeer states’ tax policies and micromanage their budgets. We will always fight on behalf of hardworking taxpayers and push back against federal overreach.”

“Every state should be insulted by the last-minute amendment the US Senate adopted into the American Rescue Plan,” said Chad Heinrich, Arizona state director for NFIB. “If a state can no longer be a master of its own destiny on tax and spending matters, then we may as well resort to a central planning model run out of DC. What needs to be made clear and repeated often is that the State of Arizona’s financial health is a product of prudent fiscal management with sound policies that attract businesses and residents to live, work and enjoy life in Arizona.”