Despite Halloween being long over, Katie Hobbs has decided to spend the Christmas season playing dress-up as a Trump-loving, tax-cutting, leader of the middle and working class.
On November 20th Governor Hobbs released her so-called “Tax Cuts for Middle-Class Arizonans” plan. If some of these concepts sound familiar, that’s because every single provision in her plan was word-for-word copied straight out of the One Big Beautiful Bill (OBBB) tax package signed into law by President Trump on July 4th:
Increase the standard deduction from $15,000 to $15,750 for single filers, $31,500 for joint filers – straight from the One Big Beautiful Bill (OBBB)
Adding an additional $6,000 deduction for seniors over 65 – straight from the OBBB
Deducting tipped income from taxable income – straight from the OBBB
Deducting overtime income – straight from the OBBB
Deducting car-loan interest on new American-made vehicles – again, right out of the OBBB
So, after spending months opposing the OBBB, trashing Congressional Republicans and urging its defeat, Hobbs has now decided to pretend that it was her idea all along. It’s like she decided to wear a Dollar Store knockoff mask of President Trump, hoping no one would notice it said Made in MAGAland on the tag.
The social media reaction to her clumsy and desperate attempt to steal President Trump’s tax plan went about as one would expect. Hobbs was brutally ratioed by comments pointing out the obvious – Trump did this first, and better.
The traditional corporate media didn’t do her any favors either, grilling her about her plan’s lack of authenticity and how she now appears to be a flip-flopper on the OBBB. Suffice to say, if Hobbs was hoping for a glowing PR reception, her Trump tax plan heist landed with a thud.
School Choice Becomes Hostage of Plagiarized Tax Plan
Perhaps there are a handful of voters out there that do believe Hobbs had a change of heart and decided to jump on the Trump train for tax cuts. Could this be the start of a sincere effort to make Arizona more affordable for the middle class?
Unlikely.
Hobbs eliminated any perception of authenticity a couple weeks after her announcement when she undermined her own proposal by recasting it as a bargaining chip in her crusade against school choice funding. This proved that either she was never serious to begin with about providing tax relief to Arizonans, or she got so much backlash from her base that she “missed” an opportunity to use the tax conformity issue as political leverage that she felt it necessary to backpedal.
Either way, the tactic is doomed for several reasons. First, Republicans at the legislature won’t go for it. Second, there are no “savings” possible with ESA cuts without kicking thousands of children out of the program, which is both cruel and unnecessary. Any points Katie Hobbs scored via her plagiarized “middle-class family” tax relief plan has been undone by self-sabotage, now proposing hurting those same middle-class families by defunding their school choices.
Lastly, tax conformity is necessary (which is why she is responding to it) and has nothing practically or politically to do with school choice funding. Trying to tie the two together simply doesn’t work.
Not Conforming Will Lead to a Large Tax Increase
Unsurprisingly, Hobbs speaks “tax cuts” like it was a 3rd language. Complicating matters further is that her “plan” is actually part of a larger discussion about the need for the state to conform to the tax changes in the OBBB. Without a full conformity package, it is our position that Arizonans will be stuck with a tax increase north of $400 million dollars.
For those unfamiliar with tax conformity, Arizona’s tax code is “coupled” with the federal one. That means the state bases its definitions on things like adjusted gross income, deductions, and exemptions, on the federal tax code.
So, when Trump’s One Big Beautiful Bill delivered big tax cuts, Arizona lawmakers must pass conformity legislation to match those changes. If they don’t, Arizona taxpayers don’t get those same breaks – meaning their taxable income goes up, and they pay more in state income taxes – offsetting the benefit on the federal side.
To use Hobbs’ example of a server named “Sally”:
Sally earns $55,000 plus $5,000 in tips. Under Trump’s new law, those tips aren’t taxed, and the standard deduction increases to $15,750. But if Arizona doesn’t conform to the federal changes, Sally loses both benefits. Her taxable income jumps by $6,500 – and her state tax bill rises by about $150, even though she didn’t make a penny more.
But the reality of Hobbs’ plan is far, far worse. The break-even amount is a $420M reduction in state revenues; her plan will lead to a massive tax hike as it only adds up to $215M. Maybe Hobbs’ tax hike parading around as a tax cut is just that Orwellian thing Democrats do when they use language to describe the opposite of what they are really doing.
Leader? Not in the Governor’s Tower.
The most absurd part of this whole stunt is Hobbs trying to frame herself as a leader on tax relief. On the policy she is nothing but an imitator. And politically, she would be a leader, if only anyone was following her.
When Hobbs rolled out her plan, the silence from the Left was deafening.
No press conferences flanked by Democratic legislators. No love from “local” progressive bastions like Progress Arizona, the AEA or other Arabella Advisers-connected AZ groups. Not even a blip in one of the lefty-controlled narrative-spinning outlets like Copper Courier or AZ Mirror.
The traditional business community had nothing to say about her announcement either. Not even liberal leaning business groups like Greater Phoenix Leadership threw a bone to Hobbs. That’s because she is entirely out on a limb, too weak to muscle her way with Republicans, and too unpopular with even her own side to build a coalition around her.
And now she’s “calling on the Republican Legislature to follow her lead”? Please.
Who’s Really Leading on Tax Cuts & Affordability?
Our organization has long been preparing a real conformity package, one that actually delivers relief to working families and small businesses.
Here’s what a serious plan looks like:
Fully covers the conformity “box” (roughly $420 million), so Arizona taxpayers see the full federal benefit.
Includes all the accounting provisions in the OBBB that help small businesses such as full expensing for business property, increasing small business expensing from $1.25M to $2.5M, and 100% depreciation for business property.
Is broad-based relief, not narrow carveouts.
Prioritizes workers, families, and small businesses.
Avoids bad policy gimmicks like the SALT deduction.
Republicans will likely fast track a more robust tax package on Hobbs’ desk in January, meanwhile (if she can even find a sponsor) her proposal will be lucky to get a committee assignment.
Republicans Will Ultimately Deliver – What Will Katie Do?
Just as Trump has been leading nationally on tax cuts and affordability, Arizona State Republican lawmakers will too. Because that’s what they have been doing the last three years – Hobbs has just been too busy either vetoing tax cuts or illegally trying to take credit for them.
Meanwhile Katie Hobbs’ “tax cut” plan is like her leadership, strictly performative. She isn’t fighting for taxpayers; she’s desperately trying to run in front of the Trump Tax Cut Train to avoid getting run over by it. But given how unconvincing even her tax cut theater is, her lack of original thought, and her inability to amass an iota of support, she’s better off surrendering to legislative Republicans and moving on.
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Despite the noble work of Republican lawmakers over the past five years to reduce the state’s burden on taxpayers (lowering and flattening the income tax, eliminating tax on renters, and addressing taxes on food,) cities and towns are constantly undermining this progress through rampant tax, fee, and utility rate increases.
Arizona’s affordability is being eroded through the insatiable tax-hungry decisions of city and town councils and their year-over-year spending sprees. If taxpayers have not noticed already, surely, they are feeling the pinch as these tax and fee hikes continue to stack one on top another. Red or blue, no city is immune, most likely your costs are going up.
Gilbert residents have been feeling these burdens on their wallets immensely this year. On January 1st of 2025, a tax increase was approved raising sales tax from 1.5% to 2%, and establishing a 2% use tax (previously Gilbert voters defeated the instantiation of a use tax via referendum in 2010), and hiking the bed tax to 5%. At the end of 2024, the Goldwater Institute sued the Town of Gilbert over the constitutionality of these sales-tax and bed-tax increases. Their lawsuit claims the city is violating a voter-approved provision of the Arizona Constitution that prohibits municipalities from imposing or increasing any tax on services (Prop 126, 2018), since Gilbert’s changes increase taxes on certain services like lodging and construction.
More recently, Gilbert residents have been shocked and upset by the astronomical rise in their water bills. In 2024, water bills went up 50%, in April 2025 another 25%, and one more planned 25% increase is set to take place in 2026. These kinds of outrageous, continuous increases hit families the hardest and will drive people away from Gilbert.
But where can they go for relief?
Certainly not the City of Phoenix. Starting in July of 2025, their Transaction Privilege and Use Tax (sales tax) increased 0.5% now sitting at 2.8%. According to the city, the increase is required to address a projected $39 million budget deficit. And this couldn’t possibly be attributed to Phoenix’s penchant for wasteful spending – like their $10 million Vision Zero program or their Office of Sustainability that self-imposes costly green new scam goals. The primary property tax levy increased by 1.22%, meaning residents with the same or higher home valuations will pay more. A 2% solid-waste fee increase occurred at the beginning of 2025 and is scheduled to happen again in January 2026.
This month, Phoenix will also consider raising inspection fees from $150 to $195 per hour and hiking hazardous material fees that will impact businesses and property owners. Phoenix city officials continuously show disregard for the financial strains persistently passed onto residents and businesses.
Unless you think you can afford to live in southern Arizona – Tucson is competing with Gilbert for who can have worse water rates. In August 2025, the City of Tucson adopted differential water rates for residents living outside city limits which includes a 5.5% base rate increase and two new fees: the Water Conservation Fee and Green Stormwater Infrastructure (GSI) Fee. Together these fees add $0.30 per hundred cubic feet (Ccf) of water to every Tucson Water bill, inside and outside city limits. This money will go to support ambiguous programs like “Homeowners Association education,” and “opportunities for low-income households.”
In September 2025, Tucson proposed several other fee and tax increases. A new 2.6% tax on Tucson businesses on all their local advertising – such as billboards, direct mail, radio. The proposal also increases the public utility tax from 4.5% to 5%, making it the highest public utility tax rate in the state. And the pawn shop and secondhand transaction fees would go from $1.00 to $3.00 per transaction. All this as if it isn’t hard enough surviving as a small business in Tucson…
Mesa is no longer a sanctuary of affordability in the state. On December 1st, the Mesa City Council voted to increase utility rates covering water, sewer, gas, electricity, and trash. Of the councilmembers present, all voted to increase the rate except one, the new councilwoman from District 2, Dorean Taylor. This is despite numerous members of the public speaking out against these rate hikes. But who cares about those guys? That seems to be the mindset of the Mesa Council after continuously raising rates and ignoring their constituents.
Listing every city and town raising taxes and fees would take too long. These are just a few examples of the same story playing out statewide.
But why are these increases so pervasive across Arizona cities and towns? According to the cities, they are all poor because the big bad state is starving their budgets. Since Republican lawmakers got to be Santa, slashing taxes, now cities must be grinch and raise them all!
And while taxpayers would certainly be the winners if the state stopped subsidizing the cities, it just isn’t true. When the Legislature lowered the state’s income tax to a flat 2.5%, the portion that went to cities (urban revenue sharing) increase from 15% to 18% in 2024. And though the cities seem to have complete amnesia about it, since 2019, the state began allowing the collection of online sales tax, a completely new and abundant source of revenue for the cities.
And the numbers bear this out. State Republicans have cut taxes, this has spurred more investment and wealth creation in the state, and as a result tax revenues have continued to climb. In Phoenix, for example, they collected $3.9B in revenues from taxpayers, and just four years later they raked in $5.7B – a 45% increase in their collections! Lest you think this is spurred by a boom in population, broken down by the number of residents, collections actually increased per resident by $1000 in only that four-year period!
It truly never ends. Taxes climb, fees multiply, and every year the cost of simply living in Arizona grows because cities and towns refuse to live within their means. Left unchecked, this steady creep of local taxation will drain families, punish homeowners, and crush the affordability in our state.
Just as the Republican-led Legislature stepped up to make Arizona affordable by cutting income taxes, it may once again fall to them to rein in local governments that can’t seem to stop reaching deeper into the pockets of hardworking taxpayers.
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Don’t you want to live in a crime-free utopia? Wouldn’t allowing the government to track our every move, solve all our problems? Local authorities seem to think so, and they have the perfect tool to usher in mass surveillance in your city: Flock cameras. Flock Safety is one of the main manufacturers of Automatic License Plate Readers (ALPRs) that have been quietly taking over cities and have already infiltrated nearly every state. These cameras monitor cars and even pedestrians constantly, logging minute details about every vehicle that passes, storing the data in Flock’s database, and feeding it into an AI platform with the capability of stitching together elaborate travel patterns. No court-issued warrant is required – not even public consent – creating massive privacy concerns for residents who often don’t know they are being watched until these cameras have saturated their community.
According to Flock’s own website, they cover 49 states, over 5,000 communities, partner with more than 4,800 law enforcement agencies, and read upwards of 20 billion license plates per month. Though law enforcement agencies are one of the primary users of these devices stated to reduce crime, cities, businesses, and even HOAs are also deploying them in residential areas.
You might think, “We don’t have these in our town.” But sometimes these cameras show up without public approval. That was the case in Sedona where the police department partnered with Flock and quietly set up 11 cameras around the city without notifying the city council. Once the council found out, they held a public meeting, heard residents’ concerns, and ultimately terminated the contract and removed every camera.
City of Flagstaff too has seen controversy over whether to renew their Flock contract for 36 ALPRs. Their council recently delayed a vote until they could get more public feedback and revisit their contract terms with Flock. The Town of Prescott Valley, AZ has 101 cameras. Tolleson, AZ has 77. Scottsdale, AZ uses dozens of Flock cameras and recently voted to remove specific references to license plate readers, photo radar, and AI technologies from its 2026 Legislative Agenda. The fight is ongoing across the state.
Casa Grande, Arizona in Pinal County, recently approved a 10-year contract with Flock totaling $10 million for 100 ALPRs, 100 pan-tilt-zoom cameras, 10 video cameras, a gunshot detection system, and additional surveillance devices. With 22 ALPRs already operating and 100 more on the way, no one will be cruising around Casa Grande without the government’s careful observation. Yet the Casa Grande police chief brushes off privacy concerns, saying: “I know people are worried about Big Brother… But if they’re calling or emailing with these concerns on their phone, that phone is capturing a thousand times more information than Flock will.” In other words, you’re already being tracked, so what’s a little more?
While Arizona is home to some of the most Flock-saturated cities in the country, the problem stretches far beyond our borders.
In Norfolk, Virginia, for example, 176 Flock cameras blanket the city. In a recent lawsuit, two Norfolk residents discovered their locations had been logged hundreds of times in less than five months: one was tracked 526 times, the other 849. These are ordinary citizens whose movements were recorded and stored for 30 days.
Oakland, CA owns 293 cameras. Denver, CO has over 100. McDonough, GA has 60. And the list keeps growing. If you want to know whether your city already uses Flock cameras, the website deflock.me shows a map of nearly 55,000 ALPRs worldwide and is growing every day, though this only lists a fraction of what is out there (Flock has over 84,000 ALPRs in the United States alone). Turns out it is harder to track the tracker, and there is no legal requirement that these governments provide a transparent database of when and where you are being surveilled.
If your city doesn’t have them yet, the city next door does. Because Flock freely shares data across jurisdictions, your information can cross state lines and land in the hands of any law enforcement agency or private company connected to the network. Many jurisdictions (including the Town of Prescott Valley) have actively sought private residences and businesses to connect their camera systems into their Flock surveillance systems – which given enough participation by private surveillance systems and Flock’s emerging use of drones would leave few places outside of government’s voyeurism. Flock boasts this integrated network as “coverage that never sleeps,” an eerie and disquieting promise.
Which is probably why people and groups that span the political spectrum oppose these ALPRs en masse. American Civil Liberties Union (ACLU) oppose the surveillance of “immigrants, transgender people, Black and Brown people” while Institute for Justice points out having a government log every trip to church and the gun store is likely to make conservatives squeamish. IJ has been involved in multiple lawsuits (including the above-mentioned in Norfolk) to protect against the threat these cameras pose to “people’s privacy, security, and freedom of movement.”
Maybe you’re like the Casa Grande police chief who insists these license plate readers are no different from tech companies tracking your cellphone. But the difference is, Flock monitors your movement constantly, often without your knowledge, and always without your consent. You can turn off your phone. You can’t turn off a camera mounted on a pole. Every car you drive and every route you take is automatically logged, creating a permanent record you never agreed to.
If Flock isn’t in your city yet, they’re probably on their way. Remind your council members that these cameras don’t belong anywhere near your neighborhood and that you didn’t sign up for 24/7 government monitoring.
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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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Two months ago, Arizona’s monopoly utilities and their political allies were patting themselves on the back about the expansion and development of a couple of new natural gas projects that they claim will help the Grand Canyon state keep up with growing energy demand.
On the surface, an announcement of new projects like the Transwestern Expansion should have been great news for Arizona ratepayers. Our state is in desperate need of more reliable, dispatchable power; especially after years of reckless green new deal investments that have raised costs and reduced reliability.
But sadly, it turns out that SRP’s enthusiasm for gas isn’t about expanding baseload power on the grid after all. The new gas capacity is instead being used to replace existing coal power generation that SRP has pledged to shut down in Arizona. All to meet ridiculous self-imposed carbon reduction goals and climate commitments that should have been junked a long time ago.
New Gas Capacity being Wasted to Shut down Coal
Last week, the SRP’s Board of Directors held a meeting and voted to convert the Springerville Generating Station from coal to natural gas by the early 2030s. That follows an earlier vote to repower the Coronado Generating Station (CGS) near St. Johns, retool it for gas by 2029, and cease burning coal entirely by 2032. It is very likely that by the time these two plants have been decommissioned, SRP won’t have any coal generation left in their portfolio, as the 527MW they get from Craig Generating, Four Corners, and Hayden Generating are all slated to be decommissioned by 2031 as well. The evaporation of a total of 2,600MW of coal generation in less than a decade.
SRP calls these decisions the “lowest-cost option” to preserve 400MW and 762 MW, respectively, of capacity, while simultaneously bragging that it will “support its carbon-reduction goals and net-zero vision”. In reality, it demonstrates that they still believe that costly and unreliable solar, wind, and battery storage are the future to meet energy demands.
Nuclear not riding to the Rescue
Since we aren’t getting any meaningful bump in baseload power capacity from these bait-and-switch plant conversions from coal to natural gas, perhaps SRP is looking at nuclear to meet our significant future energy needs.
The good news is that SRP and our other major utilities have issued rosy press releases about future partnerships and grant-funded studies to explore small modular reactors (SMRs).
The bad news: not a single nuclear plant is expected to come online before the 2040’s! Talk of expanded nuclear power from our monopoly utilities isn’t a plan; it’s a prayer.
Green Scam All the Way Down
So, if SRP’s nuclear talk is nothing more than fan fiction, and if they are chewing up all of our natural gas capacity to shut down coal, how are they going to meet future energy demand?
Two words: Green Scam.
Just like APS and TEP, SRP is pouring billions into solar and battery projects that must be massively overbuilt to replace the dispatchable energy coal once provided.
Take the Copper Crossing expansion in Pinal County: an expensive 55-MW solar field paired with 65 MW of battery storage — enough to power about 14,000 homes for only four hours. To meet evening demand, SRP would need to triple that capacity, all while still depending on natural gas for backup.
Or the largest battery storage project in the state of Arizona that went live last year – the Sonoran Solar Energy Center – with its 260MW of solar generation and 1 GW of battery storage just south of Buckeye. This “asset” was not just about meeting SRP’s decarbonization goals – but Google’s too – as they stated, “Google’s current projections indicate these projects will help its Arizona operations reach at least 80% [carbon free energy] on an hourly basis by 2026.”
And the list goes on. SRP customers aren’t getting large expansions of gas, coal or nuclear anytime soon; they’re getting expensive intermittent power that can’t stand on its own and will lead to endless double digit rate hikes.
SRP Should Abandon Their Climate Commitments & Embrace the Trump Energy Agenda
SRP has completely failed to recognize the moment. The political and energy landscape has shifted under their feet. We now have a president openly calling for America’s coal plants to stay open, and for new coals plants to be built.
Meanwhile, Arizona is on the cusp of an energy demand explosion. New data centers and chip manufacturers to fuel the AI revolution – which everyone recognizes cannot feasibly be supplied by intermittent sources.
And yet SRP is whistling past the graveyard, shutting down reliable generation and pretending nothing has changed.
There is no excuse for shuttering any working generation asset — coal, gas, or otherwise — in the face of unprecedented growth, the collapse of the ESG financing scam, and complete national policy reversal.
The path forward is obvious – SRP needs to abandon their net-zero crusade, keep the plants running, expand dispatchable capacity, and serve their customers with power they can afford, and that actually works.
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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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The Green New Scam got its start in Arizona two decades ago when a 5-0 Republican Commission (including then Republican Kris Mayes) adopted the Renewable Energy Standard and Tarriff Rules, or the REST Rules. Among other things, most significantly it ushered in the first “renewable” mandates in our state, forcing utilities to obtain at least 15% of their power from “renewables.” Ratepayers have been paying the costs (over $2 billion) ever since.
The REST Rules had a target date: 2025. Well, it’s now 2025, and the utilities have not only met that mandate, but they have also voluntarily exceeded it. Now our current 5-0 Republican Commission has started the process of repealing them.
Repealing the REST Rules is important, but the targets have already been met, and the price has already been paid. Substantively, the repeal won’t really affect ratepayers all that much. Why? Because mandate or no mandate, our utilities are completely committed to going “Net Zero” by 2050, and so far, they’ve been allowed to do it.
Just look at what solar advocates tell the mainstream media: “[The Corporation Commission] are acknowledging integrated resource plans of the utilities that call for building a lot of renewables. They are not blocking the line [siting] approvals for certificates of environmental compatibility for renewables projects. They’re not disallowing the capital costs for these projects in rate cases.” In other words, they are approving Integrated Resource Plans littered with “renewables” that will cost tens of billions, will result in the closure of all Arizona’s coal generation in the next decade, and build barely enough natural gas to cover those closures. They are not blocking Green New Scam subsidized projects. And they are allowing the utilities to recover the costs of expensive solar and wind from ratepayers. That’s not just our assessment – that’s the solar lobby’s too.
The real cause of rising electricity costs and more double-digit rate hikes is not a 15% mandate; it’s the self-imposed “Net Zero” commitment. If a 15% renewable mandate has already cost ratepayers nearly $3 billion over the last 20 years, how much more will going 100%? The Commission knows it’s at least $6 billion, because that is what their independent cost analysis told them it would cost just a few years ago. In reality, the number is far higher – $42.7 billion just for APS customers. If the high cost alone wasn’t bad enough, Net Zero also means California (or Spain, or Germany, or Hawaii) style blackouts.
Over the last 5 years, these dangerous climate commitments have shaped the utilities’ Integrated Resource Plans, which in turn have shaped their rigged “All Source” Request for Proposals, finally leading to double digit rate hike requests so that ratepayers can foot the bill. In fact, the result of the most recent RFP process for APS resulted in 93% of new generation coming from solar, wind, and battery storage. Only 7% is new natural gas capacity. And when you look at the most recent Resource Plans the four largest utilities in the state (APS, SRP, TEP, and UNS), in the next 15 years we will get a measly net increase of 751 MW of dispatchable power compared to 23,364 MW from “renewables.” That’s 31 times more “renewables” than reliable and dispatchable power, while energy demand is expected to explode. That is an energy crisis.
Though the Arizona Corporation Commission should repeal the REST Rules, we will still face major energy shortfalls unless those rules are replaced with necessary and overdue reforms. Reforms like prohibiting utilities from having climate commitments at all, ensuring Resource Planning prioritizes affordability and reliability and not carbon emission reductions, and that utilities have truly competitive All Source Request for Proposals to get the lowest cost, most reliable energy, not Green New Scam subsidized projects.
The Arizona Free Enterprise Club has filed public comments to the Arizona Corporation Commission in the docket for the REST Rule repeal in support of these reforms. The Commission is accepting public comment until November 15th.
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!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
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