Arizona small business owners applaud Governor Ducey’s balanced budget plan

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Farrell Quinlan, Arizona state director for the National Federation of Independent Business, issued the following statement this afternoon on the release of Gov. Doug Ducey’s proposed state budget.

“Arizona small-business owners appreciate the courage and care Gov. Doug Ducey has shown in crafting his bold balanced budget plan. It’s refreshing that we have a governor willing to make the tough decisions that reflect the priorities of regular Arizonans rather than special interests.

“Governor Ducey’s plan eliminates the current budget deficit and re-establishes a structurally-balanced budget by Fiscal Year 2016-2017. And he accomplishes this seemingly impossible goal with no tax increases while also sustaining classroom spending. Amazing.

“Governor Ducey has rejected bogus budgeting that looks balanced in the hazy florescence of bureaucratic custom only to be revealed in the sunlight as being written in red ink. He has made the kind of tough choices that most small-business owners had to make during the Great Recession in order to survive, including a hiring freeze, reducing administrative expenses and consolidating operations.

“Coupled with his bold regulatory reform agenda announced in his State of the State address, Governor Ducey’s balance budget plan further demonstrates to small-business owners and entrepreneurs that they can trust that the state of Arizona is clearly on the side of economic growth and job creation rather than entrenched bureaucracies and special interests.”

With 350,000 dues-paying members nationwide, including more than 6,000 in Arizona, the National Federation of Independent Business is America’s largest and leading small-business association.

Arizona Small Businesses “Thrilled, Inspired” by Governor Ducey’s Regulatory Proposals

NFIBforwebPHOENIX, Ariz., January 12, 2015 — The following is a statement from Farrell Quinlan, Arizona state director for the National Federation of Independent Business (NFIB), reacting to Arizona Governor Doug Ducey’s first State of the State Address:

“Arizona small business owners are thrilled and inspired by Governor Doug Ducey’s bold initiative to make Arizona the best place in America to work and do business.

“Governor Ducey’s new regulatory moratorium and top-to-bottom review of regulations throughout state government are exactly what an all-too-often beleaguered small business community has been counting on him to pursue and deliver.

“In his State of the State Address today, Governor Ducey again demonstrated that he grasps how burdensome and job-killing over-regulation can be for small business’ ability to survive, let alone grow and prosper. Adding a small business owner to his Regulatory Review Council will help ensure his commitment to reducing timeframes for permits and licenses are accomplished.

“Small business owners work very hard to comply with the mountain of regulations federal, state and local jurisdictions impose on them. It’s spectacular to hear Governor Ducey commit to eliminating bureaucratic entanglements that are outdated, irrational, unfair or destructive to free and honest enterprise in Arizona.

“NFIB is making regulatory reform and government efficiency our top 2015 legislative priority including Governor Ducey’s initiatives outlined in his State of the State, a law ensuring small business owners are made aware of their due process rights during the regulatory process as well as reforming the ‘corporate culture’ within the state bureaucracy from one that metes out harsh penalties to one that assists our small business job creators with regulatory compliance.”

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For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

Small Business Backs Wendy Rogers for Congress

Small Business Choice NFIB Sign-Topper2011_0621_wendy-rogers

Entrepreneurial experience, pioneering career make her Main Street’s choice

The political action arm for America’s voice of small business today announced its endorsement of entrepreneur and pioneer Wendy Rogers for Congress over incumbent Kyrsten Sinema.

“Wendy Rogers knows first-hand the rewards of building a successful enterprise, the duty of making payroll, the challenge of government regulatory compliance and the profound responsibility for the economic fates of as many as 100 employees and independent contractors affiliated with her small business,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business.

“The same pioneering spirit she exhibited as one of the first 100 women pilots in the U.S. Air Force showed up again in her willingness to work as hard as any candidate I have ever seen, knocking on thousands of doors in neighborhoods across her district in 100-plus degree Arizona temperatures.”

Rogers is the owner of a home inspection business, and is an NFIB member. The endorsement of Rogers (9th District) was made by NFIB’s SAFE (Save America’s Free Enterprise) Trust, the association’s political action committee. NFIB has 350,000 dues-paying members across the nation, including 7,000 in Arizona.

“Congresswoman Sinema earned only a 30 percent voting record on 10 issues vital to Main Street in the 113th Congress,” said Lisa Goeas, NFIB’s vice president for political and grassroots. “That is not a way to treat the people who employ more working Americans than big business, big labor or big government ever will. The engine of our economy will run much smoother with Wendy Rogers in Congress.”

Brief, single-pages of bulleted information on the power of the small-business vote, what a small business is and the distinctions it has from a big business can be found here.

“Small businesses significantly impact Arizona’s economy,” reports the Office of Advocacy at the U.S. Small Business Administration. “They represent 97.1 percent of all employers and employ 44.8 percent of the private-sector labor force. Small businesses are crucial to the fiscal condition of the state and numbered 495,227 in 2010. Most of Arizona’s small businesses have fewer than 20 employees.”

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

NFIB Endorses Andy Tobin for Congress

Small Business Choice NFIB Sign-TopperAndy Tobin

His pro-small-business record in Legislature made him the clear choice

Calling his eight years in the Legislature “the high-water mark for pro-small-business policy advances,” the nation’s largest and leading small-business association today endorsed Andy Tobin for Congress over incumbent Ann Kirkpatrick.

“Andy Tobin’s four-terms in the Arizona House of Representatives represented this generation’s high-water mark for pro-small business policy advances,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business. “He justifiably deserves a fair amount of credit for those victories, because for most of those years, he was in the House majority leadership, including three years as the House Speaker. Historic cuts to personal and corporate income tax rates, trimming of the commercial and industrial property tax burden, doubling of the exemption on equipment and machinery taxes, simplification of sales tax administration, capital gains tax reduction and faster accelerated depreciation are only the top pro-free market tax policies that became law under Andy Tobin’s tenure in leadership. Regulatory reform, employment law improvements and modest advances in curbing lawsuit abuse were also hallmarks of his record. And all this occurred during one of the deepest and most persistent economic recessions in Arizona history.”

During Tobin’s eight years in the Arizona House, he earned a 96 percent voting record with NFIB, siding with Main Street job creators on 43 of 45 issues. The endorsement of Tobin (1st District) was made by NFIB’s SAFE (Save America’s Free Enterprise) Trust, the association’s political action committee. NFIB has 350,000 dues-paying members across the nation, including 7,000 in Arizona.

“For every session of Congress, we make it vividly clear what bills will be helpful or harmful to the nation’s small businesses,” said Lisa Goeas, NFIB’s vice president for political and grassroots, “and every representative and senator knows we are keeping a scorecard. Congresswoman Kirkpatrick earned only a 30 percent voting record on 10 issues vital to Main Street in the 113th Congress. That is no way to treat the people who employ more working Americans than big business, big labor or big government ever will. The engine of our economy will run much smoother with Andy Tobin in Congress.”

Brief, single-pages of bulleted information on the power of the small-business vote, what a small business is and the distinctions it has from a big business can be found here.

“Small businesses significantly impact Arizona’s economy,” reports the Office of Advocacy at the U.S. Small Business Administration. “They represent 97.1 percent of all employers and employ 44.8 percent of the private-sector labor force. Small businesses are crucial to the fiscal condition of the state and numbered 495,227 in 2010. Most of Arizona’s small businesses have fewer than 20 employees.”

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

Small Business Backs McSally for Congress

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Arizona Second Congressional District Republican nominee Martha McSally meets with small business owners this week in Sierra Vista where NFIB’s Farrell Quinlan announced the small business organization’s endorsement of McSally’s campaign for Congress.

NFIB says incumbent’s votes not aligned with Main Street

Claiming he has abandoned his small-business roots, America’s largest and leading small-business association today endorsed challenger Martha McSally for Congress over incumbent Ron Barber.

“On 10 key votes vital to small business since his election in 2012, Congressman Barber has sided with Main Street enterprises only three times, and those three votes were popular and bipartisan enough to make them safe for anyone to support.” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business. “Two of his seven bad votes in particular stand out: His opposition to the Working Families Flexibility Act, which would have allowed private-sector employees to choose between taking time-and-a-half compensatory time as payment for over-time, and his opposition to prohibiting the notoriously employer-hostile National Labor Relations Board from making any decisions until the constitutionality of the current board had been addressed by the courts. Apparently the glitter and glamour of Washington D.C. has made him forget his small-business roots here on Main Street, Arizona.”

The endorsement of McSally (2nd District) was made by NFIB’s SAFE (Save America’s Free Enterprise) Trust, the association’s political action committee, and based on interviews and answers to a questionnaire. NFIB has 350,000 dues-paying members across the nation, including 7,000 in Arizona and 1,149 in the Second Congressional District.

In addition to today’s endorsement, NFIB launched a digital ad campaign urging voters to support Martha McSally, as well as a House candidate webpage on its National Election Center website. Voters can find tools on the website that make it easy to volunteer, donate and support Martha McSally. The effort is part of the NFIB’s Vote for Main Street campaign.

“We were impressed with the high priority Martha McSally places on getting America’s fiscal house in order, repealing Obamacare and her understanding that small businesses are not smaller versions of bigger businesses. They have different difficulties in remaining solvent,” said Quinlan. “She will be a much better representative for the people who employ the majority of Americans and generate almost every new job.”

Brief, single-pages of bulleted information on the power of the small-business vote, what a small business is and the distinctions it has from a big business can be found here.

“Small businesses significantly impact Arizona’s economy,” reports the Office of Advocacy at the U.S. Small Business Administration. “They represent 97.1 percent of all employers and employ 44.8 percent of the private-sector labor force. Small businesses are crucial to the fiscal condition of the state and numbered 495,227 in 2010. Most of Arizona’s small businesses have fewer than 20 employees.”

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

Mark Brnovich is Small Business’ Choice for Top Cop

Eighty-nine percent polled favor ex-gaming chief over former top banking regulator

PHOENIX, Ariz., Sept. 10, 2014 – Appreciating that the state’s attorney general is our last line of defense against the overreach of an aggressive federal government, Arizona’s leading small-business association today announced its endorsement of Mark Brnovich for Arizona’s next attorney general.

“Arizona’s job creators trust Mark Brnovich to enforce the law and protect our communities,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business (NFIB). “Arizona’s entrepreneurs are confident Mark Brnovich will foster a safe and secure environment and ensure a level playing field so our small businesses can thrive.”

This poll of 379 Arizona small-business owners was conducted by NFIB between August 28 and September 4, 2014.

This poll of 379 Arizona small-business owners was conducted by NFIB/Arizona between August 28 and September 4, 2014.

The Brnovich endorsement is the 7,000-Arizona-member-strong, small-business advocacy group’s first endorsement in the attorney general’s race in more than a decade. The decision to endorse was largely driven by the results of a survey of small-business owners that revealed a decisive favorite. In that survey, former federal prosecutor and ex-Gaming Department chief Mark Brnovich received 89 percent support to former top state banking regulator Felecia Rotellini’s 11 percent in the poll of 379 Arizona small-business owners conducted by NFIB August 28 to September 4, 2014.

“As Arizona’s next attorney general, Mark Brnovich will provide solid legal advice to state regulatory agencies in order to prevent overreach, regulatory bullying of small-business owners and to ensure state agencies aren’t acting on bad or inaccurate legal advice,” Quinlan said.

The formal endorsement of Mark Brnovich was made by the NFIB/Arizona Save America’s Free Enterprise (SAFE) Trust, the political action committee of NFIB members in Arizona.

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Republican Attorney General nominee Mark Brnovich discusses small business issues today at the NFIB/Arizona Small Business Forum in Phoenix. Earlier in the day NFIB/Arizona announced its endorsement of Brnovich and reported that 89% of small business owners polled supported the election of the former federal prosecutor.

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

Doug Ducey is Small Business’ Choice for Governor

Nine in 10 entrepreneurs surveyed prefer state treasurer over former regents’ chairman

PHOENIX, Ariz., Sept. 9, 2014 — Reflecting small-business owners’ nine-to-one preference of Doug Ducey over Fred DuVal to be our next governor, Arizona’s leading small-business association today announced its endorsement of Doug Ducey for governor.

“In a clear and booming voice, Arizona’s job creators say Doug Ducey is small-business’ choice for governor in 2014,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business (NFIB).

Poll of 379 Arizona small business owners conducted by NFIB August 28 to September 4, 2014.

Poll of 379 Arizona small business owners conducted by NFIB August 28 to September 4, 2014.

State Treasurer Doug Ducey received 90.4 percent support to former Board of Regents Chairman Fred DuVal’s 9.6 percent in a poll of 379 Arizona small-business owners conducted by NFIB August 28 to September 4, 2014.

The formal endorsement of Doug Ducey was made by the Save America’s Free Enterprise (SAFE) Trust, the political action committee of the National Federation of Independent Business.

“Arizona small business owners overwhelmingly recognize and appreciate Doug Ducey’s successful business experience and bold political leadership and view them as the essential qualities needed in our next governor,” said Quinlan.

“Whether it’s because of his wise stewardship of more than $12 billion in state assets as state treasurer or rising to the challenge of leading the underdog ‘NO on 204’ campaign to stop a permanent one-cent sales tax increase, Doug Ducey has earned the trust and confidence of the backbone of Arizona’s economy—our small-business owners. NFIB is proud to endorse Doug Ducey for governor of Arizona and look forward to working with him and his administration to kick start job creation in Arizona.”

UPDATE: Doug Ducey’s statement today regarding NFIB/Arizona’s endorsement of this campaign for governor:

“Small businesses are a cornerstone of a growing economy and my opportunity agenda, and I’m honored to add NFIB’s support to my growing coalition,” Doug Ducey said. “As your governor, my business priorities will include fewer regulations, lower taxes and a reformed tax code to ensure small businesses have every opportunity to thrive.”

Doug Ducey discuss how to kick start our economy at the NFIB/Arizona Small Business Forum in June.

Doug Ducey discuss how to kick start the state’s economy at the NFIB/Arizona Small Business Forum in June.

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

NFIB/Arizona Endorses 43 Legislative Candidates for the General Election

Photographed holding one of NFIB’s signature “Small Business’ Choice” campaign sign-toppers, NFIB/Arizona Leadership Council Chairman Mark Giebelhaus congratulates former lawmaker Sylvia Tenney Allen after she was selected as replacement state senate nominee by Legislative District 6 Republicans at their August 30th special meeting in Flagstaff. The extraordinary selection became necessary when incumbent Sen. Chester Crandell died in an early-August horse-riding accident after primary ballots had already been sent to voters. Mr. Giebelhaus was on hand at the GOP meeting to inform Mrs. Allen that she would receive NFIB/Arizona SAFE Trust’s endorsement. Mrs. Allen served in the Arizona Senate from 2008 to 2013 rising to the position of Senate President Pro Tempore in 2011. While in office, she achieved a perfect 100-percent score on NFIB/Arizona’s Voting Records during her four-and-a-half years in the legislature.

Photographed holding one of NFIB’s signature “Small Business’ Choice” campaign sign-toppers, NFIB/Arizona Leadership Council Chairman Mark Giebelhaus congratulates former lawmaker Sylvia Tenney Allen after she was selected as replacement state senate nominee by Legislative District 6 Republicans at their August 30th special meeting in Flagstaff. The extraordinary selection became necessary when incumbent Sen. Chester Crandell died in an early-August horse-riding accident after primary ballots had already been sent to voters. Mr. Giebelhaus was on hand at the GOP meeting to inform Mrs. Allen that she would receive NFIB/Arizona SAFE Trust’s endorsement. Mrs. Allen served in the Arizona Senate from 2008 to 2013 rising to the position of Senate President Pro Tempore in 2011. While in office, she achieved a perfect 100-percent score on NFIB/Arizona’s Voting Records during her four-and-a-half years in the legislature.

The political action committee of Arizona’s leading small-business association today announced its General Election endorsements of 43 candidates for the Arizona Senate and Arizona House of Representatives.

“The legislative candidates endorsed by NFIB today are proven friends of free enterprise whom Arizona small-business owners can trust to place their responsibility to taxpayers first over the interests of bigger government and its enablers,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business (NFIB).

These endorsements are formally issued by the NFIB/Arizona Save America’s Free Enterprise (SAFE) Trust, the organization’s political action committee, and represent the culmination of the legislative candidate endorsement process for the small business advocacy group.

In July, NFIB endorsed 42 candidates in the primary phase with all but two advancing to the General Election—Rep. Carl Seel lost his primary and Sen. Chester Crandell passed away in August. The three new NFIB endorsements for the General Election are former state senator Sylvia Tenney Allen who was selected by her party to replace Sen. Crandell in the Legislative District 6 Senate contest and House candidates Noel Campbell in Legislative District 1 and Anthony Kern in Legislative District 20. NFIB is expected to announce soon small business’ choice for governor and attorney general.

NFIB/Arizona Legislative Endorsements in the 2014 General Election:

  • LD05 Senate: Kelli Ward
  • LD06 Senate: Sylvia Tenney Allen
  • LD10 Senate: Mark Morrison
  • LD11 Senate: Steve Smith
  • LD12 Senate: Andy Biggs
  • LD13 Senate: Don Shooter
  • LD14 Senate: Gail Griffin
  • LD15 Senate: Nancy Barto
  • LD16 Senate: David Farnsworth
  • LD17 Senate: Steve Yarbrough
  • LD20 Senate: Kimberly Yee
  • LD21 Senate: Debbie Lesko
  • LD22 Senate: Judy Burges
  • LD23 Senate: John Kavanagh
  • LD01 House: Noel Campbell
  • LD01 House: Karen Fann
  • LD05 House: Sonny Borrelli
  • LD06 House: Brenda Barton
  • LD06 House: Bob Thorpe
  • LD10 House: Todd Clodfelter
  • LD10 House: William Wildish
  • LD11 House: Mark Finchem
  • LD11 House: Vince Leach
  • LD12 House: Eddie Farnsworth
  • LD12 House: Warren Petersen
  • LD13 House: Darin Mitchell
  • LD13 House: Steve Montenegro
  • LD14 House: David Gowan
  • LD14 House: David Stevens
  • LD15 House: John Allen
  • LD16 House: Kelly Townsend
  • LD17 House: J.D. Mesnard
  • LD17 House: Jeff Weninger
  • LD18 House: Jill Norgaard
  • LD20 House: Paul Boyer
  • LD20 House: Anthony Kern
  • LD21 House: Rick Gray
  • LD22 House: David Livingston
  • LD22 House: Phil Lovas
  • LD23 House: Michelle Ugenti
  • LD25 House: Rusty Bowers
  • LD25 House: Justin Olson
  • LD28 House: Shawnna Bolick

For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.

A Priority for the Next Governor

NFIB/Arizona's Farrell Quinlan

NFIB/Arizona’s Farrell Quinlan

Three of Arizona’s five Democrat members of Congress last week joined all four of their Republican colleagues from the state to accomplish what a similar bipartisan majority in the Arizona Legislature did earlier this year: It loaded a badly needed shot in the arm for the small-business owners who generate almost every new job in the state and nation.

The U.S. House of Representatives voted to make permanent a tax provision that would allow small businesses to write off up to $500,000 in new equipment purchases, and some improvements to real property, instead of depreciating the costs over time. H.R. 4457, titled America’s Small Business Tax Relief Act of 2014, would provide small businesses with expensing levels that are permanent, predictable and at a level adequate to their needs.

This change to Section 179 of the federal tax code, which overwhelmingly passed the House on a 272-144 vote, would prevent the expensing level to fall all the way to $25,000 in 2014, after being at $500,000 from 2010 through 2013. It also indexes the level to inflation. In addition, the House also passed a bill that eases the tax burden on small businesses that change from taxable C-corporate status to S-corporate status.

A quick sample of the small-business owners benefitting from the H.R. 4457 expensing levels would include:

  • Your local pizza shop owner who might want to install new ovens and countertops that cost $100,000. He could deduct these capital improvements the same year he makes them, instead of waiting for the current 39 years to get his full depreciation.
  • A farmer considering equipment purchases of $300,000 could do so with much more ease, knowing it could all be deducted the year she bought it, instead of only $25,000 of it the first year.
  • A contractor looking to buy two work vehicles costing $60,000 would be more inclined to do so. Under current law, only $35,000 could be deducted—spread over five years—instead of all of it immediately.

On June 12, Arizona Democrats Ron Barber, Ann Kirkpatrick and Kyrsten Sinema joined Republicans Paul Gosar, Trent Franks, Matt Salmon and David Schweikert in supporting this pro-jobs legislation. Congressmen Raul Grijalva and Ed Pastor, both Democrats, voted against H.R. 4457. The measure now goes to the U.S. Senate for its consideration.

Earlier this year, a similar tax relief act, House Bill 2664, passed the Arizona Legislature with overwhelming bipartisan majorities. The legislation sponsored by state Rep. J.D. Mesnard (R-Chandler) would have created an immediate state income tax allowance, similar to federal Section 179 expensing for qualifying business equipment investments valued up to $500,000.

In a tragic misreading of the needs of Arizona’s economy, Gov. Jan Brewer vetoed HB 2664 because “the money would be better utilized” on her spending priorities. Undaunted, NFIB is committed to vigorously lobbying Arizona’s next governor and the new Legislature next session to finally realize our own $500,000 allowance to spur new job creation.

Last week’s strong bipartisan House vote to pass H.R. 4457 is very encouraging to small business, especially as demonstrated by the votes of Arizona’s congressional delegation. If Congress and the president do succeed in making it federal law, Arizona’s next governor must match it. If Washington fails, then establishing the small-business expensing allowance in Arizona’s tax code will be all the more critical.

Farrell Quinlan is Arizona state director for the National Federation of Independent Business.

NFIB Arizona weighs in on latest economic report

Congress can help where Arizona fell down

PHOENIX, Ariz., June 10, 2014Today’s release of one of the nation’s most trusted economic surveys casts in sharp relief how pervasive our political leaders’ inattention to small-business job creation is, according to the Arizona state director of the National Federation of Independent Business, America’s voice of small business.

As it does very month, NFIB releases its Index of Small Business Optimism, which measures the pulse of the nation’s largest employer group—Main Street entrepreneurs. Although the index rose to its highest level since 2007, the underpinnings of a strong economy are still not seismically sound.

“What stood out for me in the latest optimism index was Arizona’s missed opportunity to spur capital spending and new job creation by our own small businesses when Governor Brewer vetoed House Bill 2664 earlier this year,” said Farrell Quinlan, Arizona state director for NFIB. The bill, which passed the Legislature with overwhelming bipartisan majorities, would have created an immediate state income tax allowance for qualifying business equipment investments valued up to $500,000, similar to federal Section 179 expensing.

Indeed, in summarizing the latest optimism index, economist William Dunkelberg, its author, noted, “May’s numbers bring the Index to its highest level since September 2007. However, the four components most closely related to GDP and employment growth (job openings, job creation plans, inventory and capital spending plans) collectively fell 1 point in May.”

“Shifting capital spending into a higher gear is essential to a full and sustainable economic recovery,” said Quinlan. “Now, even though Arizona’s capital expensing vehicle stalled, Congress can turn on the ignition of job creation by passing H.R. 4457, the Small Business Tax Relief Act, when it comes up for a full House vote Thursday.

H.R. 4457 would allow small businesses to immediately deduct on their federal taxes the full value of equipment in the same year the investment is made, instead of depreciating the investment over time. This simplifies accounting and frees up cash to be reinvested and grow the business.

“The job-creation user’s manual is pretty straightforward and easy to follow,” said Quinlan. “If business owners have an incentive to invest in more equipment, they will need to hire more employees to meet the increased sales that equipment will generate. But I worry H.R. 4457 may face a similar grim fate in Congress as House Bill 2664 suffered in Arizona, despite everyone—Democrats, Republicans, business and labor—favoring it, a tragic misreading of the economy’s weakness will lead to continued inertia and another missed opportunity.”

Despite broad, bipartisan support, small-business federal expensing fell from $500,000 to $25,000 this year because previous extensions were temporary. H.R. 4457 would provide small businesses with expensing levels that are permanent, predictable and at a level adequate to their needs.Click here to read a letter 154 business associations signed and sent to Congress.

NOTE: The NFIB Research Foundation has collected Small Business Economic Trends data with quarterly surveys since 1974 and monthly surveys since 1986. Survey respondents are drawn from NFIB’s membership. The report is released on the second Tuesday of each month. For almost 40 years, NFIB’s Index of Small Business Optimism has been one of the nation’s bellwether economic barometers, used by Federal Reserve, chairmen, congressional leaders and presidential administrations.

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For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges and priorities.