Some Arizona small business owners are saying economic relief will be a big part of their vote this year, and it could make or break votes in one of the key battleground states.
Small businesses play a major role in Arizona’s economy, employing more than 40% of people in the state, according to the Small Business Administration.
Chad Heinrich, the State Director for the National Federation of Independent Business(NFIB) – Arizona, said one of the biggest clouds of uncertainty for small business owners this election cycle revolves around the 2017 Tax Cuts and Jobs Act. It was put in place by former president Donald Trump and expires at the end of 2025.
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“Not only are small businesses facing a significant tax increase if Congress lets this expire. But Arizona’s economic growth really hinges on Congress acting and making the 20 percent small business deduction permanent,” Heinrich said.
More than 500 business groups across the United States are calling on congress and the next administration to keep former president Trump’s tax cuts in place.
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Both candidates, Trump and Harris have said they plan to cut taxes even beyond that previous legislation.
Economists say another reason some small business owners are falling behind is because Tucson’s labor market is tight. The overall economy in Arizona is doing well, but there is room for improvement in the labor market, according to George Hammond, an economist at the University of Arizona.
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“That means that workers have lots of job opportunities out there and employers are really struggling to hire and retain the workers that they need,” Hammond said.
Some Arizona small business owners say it is more difficult now than ever before to be able to afford to hire more workers. The owner of Tucson Mineral and Gem World in Tucson, Arizona said his shop has been open for around 60 years and his bills have never been this high.
“It hurts, it hurts. Got to look at the end of the month. You can’t look on a daily. You’ve got to look at the end of the month and see how it tallies out and hope you got enough to pay all of the bills,” said Richard Ratkevich.
Ratkevich said he believes inflation is part of the reason why his bills are so high, and it has made his budget tighter.
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“I can’t hire anybody at whatever the going rate is. Everything is just as we have it,” Ratkevich said.
A manager at Susy’s Shear Artistry said it can be hard to offer competitive pay in their industry.
“Our stylists were going to other places to try to find higher paying jobs, or doing anything possible and it kind of made this portion of the service industry unlivable,” said Bre Harmon.
Harmon said it’s been tough for her shop to balance everything in today’s economy.
“It’s more of everything around us rising and us having to play the game of what is a reasonable price for us to be able to charge, still pay everyone,” Harmon said.
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