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IN Gov. says redistricting won't return in 2026 legislative session; MN labor advocates speaking out on immigrants' rights; report outlines ways to reduce OH incarceration rate; President Donald Trump reclassifies marijuana; new program provides glasses to visually impaired Virginians; Line 5 pipeline fight continues in Midwest states; and NY endangered species face critical threat from Congress.

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Legal fights over free speech, federal power, and public accountability take center stage as courts, campuses and communities confront the reach of government authority.

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States are waiting to hear how much money they'll get from the Rural Health Transformation Program, the DHS is incentivizing local law enforcement to join the federal immigration crackdown and Texas is creating its own Appalachian Trail.

Group Warns AZ Small Businesses of Possible Tax Hike

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Monday, April 17, 2023   

Tax day is tomorrow, and the National Federation of Independent Business is warning Arizona small businesses of what the group called "unprecedented tax hikes" as part of President Joe Biden's proposed 2024 budget.

Kevin Kuhlman, vice president of federal government relations for the National Federation of Independent Business, said one of the taxes the president's budget wants to expand is called the net investment income tax. It could mean businesses with an income above $400,000 could pay 5% on their total earnings instead of the current 3.8%. Kuhlman argued it could negatively impact small businesses, particularly in Arizona, where he noted they make up the majority of establishments throughout the state.

"This small business surtax would hit small businesses, let's say that are recovering from COVID and trying to expand their businesses," Kuhlman contended. "It would cut into cash flow."

Kuhlman emphasized having diminished cash flow means fewer business investments, fewer increases in wages as well as less job creation.

According to the latest jobs report from the NFIB, 43% of small business owners are struggling to fill positions.

President Biden has said the tax hikes are targeted at businesses and high-income individuals in an effort to close "tax loopholes" the wealthy have benefited from.

Kuhlman countered coming out of the COVID-19 pandemic, inflation and workforce shortages "persist." He added inflation has been especially problematic in Arizona, which had the highest rate of all 50 states, and is also concerned about future "economic headwinds."

"The expectation for better business conditions in the future are near historic lows," Kuhlman asserted. "We have these very concerning economic headwinds, so any tax increase would compound those problems and really make the forecast for the economy extremely problematic."

Kuhlman stressed the president's budget proposal is the "opening bid" in the negotiation for the national debt ceiling increase, which is expected to happen later this year.


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