A strong economy is a key piece of the foundation for any society. But while the Biden administration has been busy doing anything it can to destroy the economic climate in America over the past four years, Arizona is set up for success—not just for today, but for decades to come.
Last month, the American Legislative Exchange Council (ALEC) released its latest “Rich States, Poor States” report, and the Grand Canyon State received the number three ranking for economic outlook among all 50 states. Such a high rank is impressive enough on its own, but when you consider that our state was ranked 13 back in 2021, Arizona’s dramatic rise up the chart especially shines. So, how did we get here?
Pro-Growth Policies Have Led the Way
Arizona’s high ranking is a direct result of significant pro-growth income and property tax reform that have supercharged our economy. In just the last decade, we have cut taxes on capital gains and drastically reduced the property tax burden on small businesses. Then, in July 2021, the Free Enterprise Club helped lead the charge as the Republican-led legislature passed a 2.5% flat tax, delivering historic tax cuts for every single Arizona taxpayer. And if that wasn’t enough, Republicans also included tax relief for Arizona’s families in last year’s state budget to help with the growing cost of gas, groceries, housing, and energy under the Biden administration.
Each of these pro-growth policies have set up Arizona as a leader in the country with many other states looking to mirror these reforms, but if the left had gotten its way, we never would have been here.
Stopping the Left’s Push to Double Arizona’s Income Tax
For five years, the left fought to give our state one of the highest income tax rates in the country. And after an ugly campaign where Red4Ed deceived voters and spent more than $23 million, Prop 208 barely passed in Arizona with only 51% of the vote—doubling our income tax. But in a case that the Free Enterprise Club joined as a plaintiff, the Arizona Supreme Court struck down the unconstitutional tax hike. Then, a superior court judge put the final nail in the coffin of Prop 208 when he ruled that the money raised from the tax would exceed the constitutional spending limit for education. But the battle was far from over.
Red4Ed immediately set its sights on Arizona’s historic flat tax, spending over $5 million to hire an army of paid circulators to put a referendum on the ballot to block the tax cuts from going into effect. But after the referendum was submitted, the Free Enterprise Club filed a lawsuit, challenging the constitutionality of the ballot referral because it did not comply with the “support and maintenance” clause in our state’s Constitution.
Once again, we defeated the teachers’ union when the Arizona Supreme Court ruled against the referendum and issued another big win for taxpayers. But we knew these rulings wouldn’t stop the left from trying to jack up taxes at a later date.
Protecting Taxpayers from Future Increases
It’s clear that the left has an insatiable desire to take more of your hard-earned money and put it into their coffers. In the case of Prop 208, they were able to do that by winning only 51% of the vote (until the court system killed it). But allowing 51% of the population (who may not have to pay a tax increase) to vote to tax the other 49% is wrong. That’s why the Club also led the charge on Prop 132, a constitutional amendment that requires a 60% majority vote of the people on any ballot measure that seeks to raise taxes.
The ballot initiative passed in 2022, ensuring that if the people of Arizona are asked to part with more of their paycheck, it will require a broad agreement from every part of the state.
Now, it is critical to keep all these reforms in place. Slashing income taxes and increasing the approval threshold for future tax hikes has made Arizona a destination for both families and entrepreneurs. And if we stay on this path, our state is on track to continue its route of economic growth and perhaps one day see that number one ranking.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
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