Plan to mitigate the impact of Prop. 208’s “confiscatory taxation” must be passed
PHOENIX, June 8, 2021—Small-business optimism hit a bump in the road in May, according to today’s release of the National Federation of Independent Business’ Small Business Economic Trends report, also known as the Optimism Index.
“May saw a slight pause in the recovery of small business optimism after steadily increasing each month in 2021,” said a national news release issued by NFIB. “As reported in NFIB’s monthly jobs report, a record-high 48% of owners reported unfilled job openings.”
Commenting locally, Chad Heinrich, NFIB’s Arizona state director, said, “Finding qualified workers has always been a top issue for small businesses. Since the federal government disrupted the labor market by paying people to stay home, it’s no surprise we now have growing pains. Actions have consequences. Thankfully, Governor Ducey has put an end to the overly generous federal unemployment payments. This action combined with reinstating the work search requirement for those on unemployment will help move us forward and get Arizonans back to work. Arizona small-business owners have an additional, unique issue. That is, they are also staring at the impact of the ballot box tax increase called Prop 208. Knowing they will be punished for success in their business through confiscatory taxation will logically impact their decisions to grow and expand their business. We are thankful that the governor and legislative leaders have a plan to mitigate this impact and urge all lawmakers to support these efforts.”
From NFIB Chief Economist Bill Dunkelberg
“The labor shortage is holding back growth for small businesses across the country. If small business owners could hire more workers to take care of customers, sales would be higher and getting closer to pre-COVID levels. In addition, inflation on Main Street is rampant and small business owners are uncertain about future business conditions.”
Other key findings include:
- Five of the 10 Index components improved, three declined, and two were unchanged.
- The NFIB Uncertainty Index decreased one point to 79.
- Job creation plans over the next three months rose to a net 27%, up six points.
- Owners expecting better business conditions over the next six months fell 11 points to a net negative 26%.
- Earnings trends over the past three months declined four points to a net negative 11%.
Keep up with the latest on Arizona small business news at www.nfib.com/arizona or by following NFIB on Twitter @NFIB_AZ
For 78 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.