The 2025 state legislative sessions commenced with all fifty states in regular session, examining various proposals affecting small businesses. These include issues such as taxes, unemployment insurance, and swipe fees.
Over the years, 25 states have reduced individual income tax rates. In 2025, similar moves have been made by states such as Kentucky and Idaho. Meanwhile, some states, such as Maryland, are considering tax increases due to budget shortfalls.
Many states are also looking into prohibiting employer-sponsored meetings that discuss unionization. Proposals to this effect have been introduced in several states, although some, like New Mexico's, have been defeated.
Credit card swipe fees are another focus. Legislators in at least 11 states are working on measures to alleviate costs related to these fees by removing sales tax from their calculation. Illinois led with a proposal passed last year.
There have also been proposals to provide unemployment insurance benefits to striking workers, which could affect small business taxes. This is under consideration in states like Oregon, Washington, and Connecticut, with New Jersey and New York currently extending such benefits.
Extensive temperature regulation proposals are intended to prevent temperature-related workplace illnesses, and these have been introduced in over ten states. Laws are already in place in California, Maryland, Minnesota, Nevada, Oregon, and Washington.
Paid leave mandates are in place across 18 states. Nebraska is considering amending its paid leave laws to exempt small businesses, while Missouri is looking to repeal its program.
Finally, minimum wage increases are proposed in various states. Washington, California, Connecticut, New Jersey, and New York are amongst those with high rates, while Vermont and Rhode Island have put forward plans for substantial increases.
NFIB has played a role in opposing various proposals, including tax increases in Maryland and paid leave measures in New Mexico, Virginia, and Hawaii.
