Dear Friend,

I hope you are continuing to stay well. We hope that everyone enjoys spending time with their families this Thanksgiving. I am grateful to represent those in Arizona's 6th District today and everyday. 

Below you will find updates and resources for you to utilize.   

Household Income Grew After Tax Reform

As we approach the three year anniversary of Republicans passing tax reform, pro-growth legislation that modernized our outdated tax code and cut taxes for hard-working Americans, we are continuing to review the positive impact this legislation had on our economy. It is important that we continue to focus on how this legislation provided incredible growth so that we can further develop policies to re-grow the economy. 

In the chart above, produced by House Republicans on the Joint Economic Committee, we can see the exponential growth in median household income after passing tax reform. As we continue to help individuals safely return to work, furthering our economic growth and making permanent this tax policy remain priorities of mine. 

Resources for Small Businesses

We wanted to provide you with a few resources, tips, and information for navigating the Paycheck Protection Program loan forgiveness process. The Small Business Administration (SBA) has published a Frequently Asked Questions document to answer common questions from business owners who are trying to navigate this process. The Treasury has also provided a step-by-step guide for businesses applying for loan forgiveness.

Contrary to congressional intent, the IRS has recently stated that businesses will not be able to deduct business expenses that were paid for by PPP. If this policy remains and you are a business owner with questions about this, I recommend consulting your tax advisor about the potential tax impact on your business.

I am a proud cosponsor of H.R. 6821, the Small Business Expense Protection Act of 2020, which would reverse the IRS’s ruling and allow businesses who utilized PPP to deduct business expenses covered by the program. This effort has strong bipartisan support in both the House and the Senate, and I recently sent a letter to House leadership pushing for immediate congressional action on the issue.

I also wanted to inform you that House Republicans are sending a letter to 23 House Democrats who have said they would move ahead without Speaker Pelosi on COVID-19 negotiations to sign our PPP Discharge petition to release the remaining funds. You can find the full letter here. 

Arizona's Entrepreneurial Growth

I wanted to share some fascinating data related to new businesses opening and how  entrepreneurs are working to create and provide additional services in our community. Shown above, you will see Arizona's growth in new businesses formed between Q1 and Q3. As we are coming out of these difficult times, I want to embrace our new entrepreneurs for their work to provide services and resources in our community. 

We can see above that business applications have sky-rocketed. Whether this be our online entrepreneurs working to create face coverings, or new businesses focusing on contactless delivery, we are seeing our economy become more creative and adapt to new opportunities. As co-chair of the Congressional Entrepreneurship Caucus, I am continuing to work with startups in Arizona and across the country to continue this growth.  

I appreciate you taking the time to read our weekly e-Newsletter. I hope that you and your family are able to enjoy this holiday week. If our office can ever be helpful for you, please don't hesitate to reach out to us. 

Sincerely,

David Schweikert