Over the past month, Minnesota has been hard at work to set the gold standard for jaw-dropping fraud scandals under the watch of Democrat Governor Tim Walz. The Somali daycare scandal has turned the state into a national punchline—hundreds of millions in taxpayer dollars stolen in plain sight while Kamala Harris’ favorite “masculine” governor looked the other way.
Now, with Walz stepping aside from this reelection bid, a new contender for “most scandal-plagued governor on the 2026 ballot” has emerged: Arizona Governor Katie Hobbs. While Minnesota’s scandals have dominated headlines, Hobbs has been busy compiling a rap sheet that rivals what happened in the Land of 10,000 Lakes. But unlike Walz, Hobbs and her administration are under active criminal investigation.
A Pay-to-Play Scheme Engulfs the Hobbs Administration
The list of Hobbs’ scandals is a mile long and begins at the start of her tenure as governor. At that time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
After immense political pressure, Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona. Sunshine Residential donated $100,000 to the secret fund, which was suspicious enough. But after some additional digging by local reporters, an even deeper level of corruption was revealed—an alleged pay-to-play scheme between Hobbs and the group home.
According to the report, it turns out Sunshine Residential Homes doled out $400,000 to the Arizona Democratic Party, Hobbs’ gubernatorial campaign committee, and her aforementioned inaugural fund. Hobbs and her campaign finance manager even arranged a dinner with the government contractor to meet with the CEO in private.
After making the large donations, Sunshine was granted a 30 percent increase in their rates at a time when the Arizona Department of Child Safety cut loose 16 providers! On top of that, no other standard group home provider received a rate increase. This arrangement ensured that Sunshine Residential would receive millions in additional revenue at the taxpayers’ expense.
Hobbs’ is currently under three separate criminal investigations for this pay-to-play scheme, but it’s not the only financial scandal we’ve seen during her reign as governor.
Agency Fraud Runs Rampant Under Katie Hobbs
Earlier this year, one of the largest Medicaid fraud scandals in state history came to light when it was discovered that the Arizona Health Care Cost Containment System (AHCCCS) had been rocked by more than $2 billion in fraudulent billing.
Reports tied the abuse largely to Residential Treatment Facilities—often called “sober living homes”—where patients were allegedly exploited in schemes designed to maximize profits rather than provide care. Investigators allege that some facilities bribed individuals to attend certain programs, then billed Medicaid for services that were medically unnecessary—or never provided at all.
One of the most prominent cases involved Farukh Jara Ali and occurred under the watch of Katie Hobbs. Ali—the Pakistan-based owner of ProMD—was indicted in June for submitting more than $650 million in fraudulent Medicaid claims. Not only does that money come directly from taxpayers, but the whole scheme exploited Arizona’s healthcare system at the expense of people who need real help.
Arizona’s Medicaid program isn’t the only agency that Hobbs has let turn into a playground for fraudsters. In 2023, the Arizona Department of Housing wired $2 Million to a fake NGO claiming to be providing affordable housing. A scathing report from the Auditor General found that the department lacked basic security protocols, failing to develop any wire transfer procedures that would have stopped the fraud. As of today, none of the scammers that ripped off Arizona taxpayers have been caught.
Sweetheart deals and a Jobs Program for Insiders
In addition to the agency fraud and her pay-to-play favor factory, Hobbs has developed a reputation that sweetheart deals await close friends and family members of the administration. In 2024, Governor Hobbs shelled out $700,000 for a new state logo. And who do you think received that contract? Urias Communications—a firm owned by the brother of the (at the time) Office of Tourism Director Lisa Urias.
That same year, it was discovered that Hobbs had turned her office into a jobs program for her political friends—expanding her staff by a whopping 40 percent over the previous administration. And then she followed that up this year with a handout of nearly $600,000 in taxpayer money to a former Democrat politician and her assistant for two newly created jobs.
Altogether, Katie Hobbs’ various scandals paint a damning picture of a governor who has blurred the line between public service and personal politics at every turn. While Tim Walz’s fraud crisis may have shocked the nation, the controversies surrounding Katie Hobbs cut closer to the governor’s office itself—donor favoritism, insider deals, massive fraud, and an alleged pay-to-play scheme currently under criminal investigation.
With Tim Walz pulling out of his gubernatorial race, Hobbs stands alone as the most scandal-plagued governor on the 2026 ballot. Arizona voters can’t afford to tolerate another four years of her corruption.
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Arizona has hardly had an opportunity to recover from the aftershocks of Biden-omics. The trillions of dollars injected into the economy through the so-called Inflation Reduction Act continue to work their way through the system in the form of higher prices and eroded purchasing power. Open-border policies that expanded the labor supply at the lower and middle ends of the wage scale have depressed wages. And the Biden Administration’s unprecedented regulatory burden on industry, a nearly $2 trillion drag on the economy, will take far longer than a year to unwind and correct.
Unfortunately for Arizona, efforts to fix these problems at the federal level cannot be fully realized here at home because Katie Hobbs remains our Governor.
Hobbs has harmed Arizona’s recovery, overseeing a massive fall from 4th in the nation in job growth to 47th. She inherited a booming local economy after a Republican legislature and Governor ushered in a 2.5 percent income tax, incentivized entrepreneurs and small businesses, prioritized deregulation, and expanded choice and freedom in education. Yet Hobbs has managed to squander that opportunity. In fact, it takes a special skill set to be perfectly set up for success and then drive a working model into the ground.
And Hobbs knows she’s to blame. That’s why she’s now desperately trying to reinvent herself by pushing Trump-esque tax cut rhetoric while clinging to the same big-spending, high-tax policies that caused the damage in the first place. At her core, she remains a California-style Democrat who would rather govern Newsom-style than embrace the Republican solutions that actually work. That’s why, despite a Republican legislature that has delivered tax relief bills, more disciplined budgets, and common-sense deregulation, she has earned a reputation as the veto queen.
As a result, Arizonans are dealing with real affordability woes, and they best not hinge their hopes on Hobbs.
Despite responsible budgeting and repeated tax relief efforts by Republican lawmakers, affordability pressures continue to mount. Taxes are creeping higher at every level of government. Utility bills have surged. Housing costs are outpacing wage growth. And programs intended to help struggling families are losing billions to fraud, waste, and mismanagement.
That is why the 2026 legislative session must focus on Affordable Arizona. And Republican lawmakers already know how to confront the true drivers of cost, restore economic growth, protect taxpayers, and ensure Arizona remains a place where families can afford to live, work, and build a future.
Deliver Real Tax Relief, Not Hobbs Window Dressing
President Trump delivered historic tax relief for working families through the One Big Beautiful Bill. Arizona now has a choice: conform to the whole amount and pass that relief through to taxpayers or allow Hobbs to water it down and quietly raise taxes.
That means this session Republicans must unify behind a plan that delivers at least $420 million in meaningful tax relief, is tailored to Arizona’s needs by prioritizing workers, families, small businesses, and fixed-income retirees and ultimately avoids bad policy gimmicks like the SALT deduction, which benefits high earners in high-tax states.
Governor Hobbs has tried to rebrand herself as a tax cutter, but her conformity proposal doesn’t come close to covering the full impact of federal tax changes. Anything short of the full conformity box means Arizonans pay more in state taxes, even if they get a federal tax cut.
Stop the Local Tax Creep
Even as the Legislature has cut taxes, cities and towns across Arizona have been quietly raising them. Sales taxes, use taxes, fees, rates – local governments are stacking them year after year, erasing the gains families were supposed to feel from conservative reforms.
This local tax creep isn’t accidental. It’s the result of city councils that refuse to control spending and know taxpayers will be forced to foot the bill.
The Legislature must step in with the kinds of taxpayer affordability protections Republicans are known for such as a moratorium on local tax, rate, and fee hikes, voter approval for any local tax increase, absolute caps on local tax rates, and ending property tax hikes to support empty and underutilized schools.
Hobbs won’t be keen on choosing taxpayers over her local big-government allies, but Republican lawmakers should press ahead anyway. After all, affordability doesn’t end at the state’s income tax rate. It’s felt in every incremental tax and fee levied by local jurisdictions.
Lower Energy Costs by Stopping the Green New Scam
Arizona families are being crushed by rising utility bills. Ratepayers of the largest monopoly utility in the state have been shocked by three major rate hikes in four years with another 14% increase being proposed this year. And all of it is driven by utilities chasing expensive, unreliable “green” scam projects (and profits).
Ratepayers are paying for massive battery farms, wind, and solar projects that don’t reliably meet peak demand while pushing dependable energy offline. The result is an impending energy crisis with higher costs and less reliability.
Republicans have real solutions to this critical pocketbook issue. Reform utility resource planning to prioritize reliability and cost, allow large energy users to build their own power to reduce strain on the grid, and require utilities to meet dependable, dispatchable energy targets.
Despite Hobbs vetoing every prior attempt to protect ratepayers (and her consistent alignment with utility interests,) Republicans must make stopping these relentless rate hikes a priority. Affordable energy is the backbone of an affordable state and a major kitchen table issue for Arizonans.
Crack Down on Hobbs’ Welfare Fraud and Health Care Waste
Affordability is also undermined by billions of wasted taxpayer dollars. Arizona’s AHCCCS system alone has been rocked by more than $2 billion in fraudulent billing, including a single $650 million scheme that occurred under Katie Hobbs’ watch.
That money comes directly from taxpayers.
Whether Hobbs has been asleep at the wheel or distracted by manufacturing her own questionable pay-to-play arrangements, it’s up to Republicans to clean up her mess. That means strengthening oversight, improving fraud detection, enforcing eligibility rules, mandating regular independent audits – and continuing to investigate Hobbs’ alleged misconduct.
Every dollar stolen is a dollar that could have lowered taxes or reduced costs for families.
Hobbs is a Hinderance, But Help is on the Horizon
The 2026 legislative session is critical for Arizona.
One path leads toward California-style governance: higher taxes, higher costs, endless subsidies, and permanent dependence on government programs that only increase our state’s problems.
The other path builds upon Arizona’s proven conservative model: lower taxes, abundant energy, and accountability in public spending.
Republicans have the ideas. Republicans have the record. Now Republicans must make 2026 the session that decisively puts affordability first for today’s families and especially as we weather the last 12 months with Hobbs at the helm.
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When people hear the phrase “left-wing political machine,” they probably think of local activist groups, paid protestors, and maybe even out-of-state wealthy progressive donors writing checks from afar. That mental model would be both outdated, oversimplified, and a major underestimation.
What operates in Arizona today is far more sophisticated and opaque. It’s best understood not as a movement (as the Left likes to brand themselves), but as a syndicate: multiple non-profits leveraging tax deductible contributions to advance shared political goals through a permanent, year-round infrastructure.
Our newly released report, prepared in conjunction with the Arizona Liberty Network, examined the financial transactions between a consortium of non-governmental organizations (NGOs) operating in the Grand Canyon State, and illuminates just how far-reaching this system is…in Arizona, this liberal syndicate has its fingerprints on almost every lever of government.
A National Pipeline, Not a Local Movement
When examining the financing of the liberal syndicate, it’s important to note that virtually all of their funding comes from out of state sources. National, and in some cases multinational, donors and foundations are the primary sources of money. The NGO network also utilizes direct taxpayer subsidies through grants at the federal level.
Most of the individual donors and foundations bankrolling the syndicate provide their giving through a financial instrument known as a donor-advised fund (DAFs). A DAF lets wealthy progressives make tax-deductible contributions to a private fund, which then routs their donations to ideological nonprofits.
The other major trough of funding for the network comes from taxpayers in the form of government grants. The most notable Federal agency providing these funds was USAID, which contributed over $50 million last cycle to progressive “philanthropic” organizations that then participate in political advocacy in Arizona.
From there, the money gets funneled through a web of intermediary organizations. Arabella Advisors (recently defunct and being replaced by Sunflower Services), Tides, and their affiliated funds dominate this space. These groups aggregate all that tax-advantaged and taxpayer-backed dollars, then redeploy them nationwide. Arizona is one of their preferred destinations.
Our report tracked more than 180 financial transactions, primarily from 2023 and 2024 alone. Altogether, the upstream sources pushed over $1.8 billion into the liberal NGO network, with nearly $200M ending up with organizations operating in Arizona.
So, this is no organic grassroots “movement”. It is a sophisticated syndicate: part tax-subsidized, part tax-advantaged, and built to operate year-round.
Permanent Infrastructure is the Name of the Game
What makes this system effective isn’t any single race or election. The bigger picture (and the bigger bucket of money) is the investment in everyday operations: voter registration, litigation, lobbying, and media narrative control.
Progressive organizations build C3/C4 pairings where the “nonpartisan” arm registers voters, builds databases, does policy research, and trains staff year-round. The sister C4 then uses that same infrastructure for electioneering, lobbying, litigation, and ballot measures.
Another mainstay is their funding of media outlets that will curate and frame the everyday narratives around Arizona issues, politics, and politicians. For example, Copper Courier received more than $7 million since 2022 from Soros-aligned entities. Though funded through tax-exempt nonprofits, it functions less like journalism and more like a citation farm for Democrat messaging with content written by operatives, shared by activists, and then recycled by campaigns during election season.
They then utilize the network to amplify their direct political spending.
In 2024 alone, aligned progressive groups spent over $33.2 million on non-federal races, which includes down-ticket candidate races and ballot measures.
One mega-PAC, PAC for America’s Future – Arizona, raised $28 million, mostly from out-of-state donors, and sent $3.2 million straight to the Arizona Democratic Legislative Campaign Committee. Their largest individual donation was a $2 million check from Jonathan Soros, son of billionaire donor George Soros.
Their major targets were flipping the Arizona State Legislature blue and passing an extreme pro-abortion measure. Coordinated progressive groups, such as the Chispa AZ PAC, Future Freedoms, Opportunity Arizona, and Our Voice, Our Vote poured over $7 million into boosting legislative Democrats and $4.5 million into opposing Republicans in key swing districts. Groups such as Mi Familia Vota, Will of the People, AANHPI Rising Tide, and Worker Power PAC spent heavily in the ballot measure space.
Understanding and Countering the Blueprint
Most people after viewing our report want to know if anything can be done to thwart this coordinated assault on Arizona and other states around the country.
We believe it can be stopped, and believe the first step is creating awareness about this threat. It’s obvious that this liberal network is not spontaneous civic engagement. This is a sophisticated, tax-subsidized, and centrally coordinated political syndicate, built to operate every day, every year, regardless of election outcomes. The more people know about it, the less they can operate in the shadows.
The next step is cutting off taxpayer funds from organizations that engage in political activity. The Trump administration took a major step on this front when they shuttered USAID earlier this year. But there are other federal, state and even local jurisdictions handing out taxpayer cash to liberal non-profits, that then use those dollars to lobby and electioneer in Arizona. All of it should be banned.
And finally, while it can be difficult to draw a clear line between some philanthropic educational activity that can be political, what is undeniable is that tax-deductible NGO’s cannot finance overt electioneering or activities that violate the law. For instance, partisan get-out-the-vote drives or organizations that promote violent protests should not receive tax-exempt status and must be investigated by the Department of Justice.
The good news is that it’s clear that this progressive network is feeling the heat. In just the last couple of months, several major donors have announced that they are severing ties with the syndicate. And Arabella Advisors, the largest intermediary in the network, quietly announced that they are closing their doors and have reorganized under a new entity called “Sunflower Services.”
We believe that with continued public scrutiny and political pressure, the Arizona Liberal NGO Syndicate can be dismantled.
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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Our country is facing an energy crisis. No, not because of new demand from data centers or AI. Instead, it’s because utilities in nearly every state, due to government imposed “renewable” mandates, self-imposed mandates, and the supercharging of the Green New Scam under the so-called “Inflation Reduction Act”, have been shutting down vital coal resources and building out almost exclusively intermittent and costly resources like solar, wind, and battery storage.
Taking a look at our largest regulated utilities (APS, TEP, and UNS) and the largest nonprofit utility, SRP, future plans paint an alarming picture. Combined, over the next 15 years, these utilities expect to see demand increase from 19,200 MW to 28,000 MW. For reference, 1,000 MW of electricity is enough to power roughly 250,000 homes. To meet that growth in demand, however, Arizonans will only get a net increase of 989 MW of reliable generation (coal, natural gas, and nuclear) compared to 22,543 MW (or nearly 23 times as much) of intermittent solar, wind, and battery storage.
But what about all of the new natural gas coming into the state? The vast majority of it will be eaten up just to replace existing coal resources, not to bring additional affordable energy to the grid. For example, the SRP board recently voted to approve the conversion of their Springerville coal plant to natural gas by 2030, which follows an earlier vote to convert another of their coal plants, Coronado, to natural gas by 2029. This coal conversion trap leaves ratepayers with the same amount of energy as before, eating up new natural gas capacity, without the benefit of more electricity.
So, while the Arizona utilities plan to collectively build an additional 4,538 MW of natural gas capacity over the next 15 years, at the same time they will be removing -3,549 MW (all of what is left on the grid today) of coal. And there are no plans for more nuclear capacity anytime soon. Instead, to meet their voluntary climate commitments, utilities plan to saddle ratepayers with the cost and resultant blackouts of the green new scam.
It’s the same story around the country. Electricity rates are rising. Reliability is crumbling. We know the cause. For generations, we’ve been able to provide reliable energy at an affordable cost. The only variable that has changed has been what we are choosing to build. Then, it was reliable, dispatchable power. Now, it is intermittent sources that we know cost more, and that we know cause blackouts, all to meet absurd goals of going 100% renewable – something that no utility, state, or country has been able to achieve. And we know the result when they try.
This crisis can be avoided. President Trump has laid out the plan to unleash American Energy. Now, it’s time for utilities to drop their costly green new scam commitments and go back to building reliable and affordable power that generations to come will benefit from.
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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The Arizona Free Enterprise Club, in partnership with the Liberty Network, has released a landmark report exposing a billion-dollar left-wing political machine quietly reshaping Arizona.
“Arizona’s Liberal NGO Syndicate Report” details how donor-advised funds, national dark-money intermediaries, and teachers’ unions funnel massive sums into local groups to influence elections, ballot campaigns, litigation, and media narratives, often with little transparency. The report shows that this network is strategically designed to create lasting political infrastructure, rather than merely supporting short-term electoral victories.
National donors, including Fidelity Charitable, Silicon Valley Community Foundation, and Rockefeller Philanthropy Advisors, channel over $1 billion into intermediaries like Arabella Advisors/Sunflower Services, Tides Nexus, and Soros/Wyss-backed networks.
These funds are then deployed to Arizona-based organizations such as One Arizona, LUCHA, ACE, Chispa, AZ Mirror, and Copper Courier to carry out voter-registration drives, litigation campaigns, and media influence efforts.
Meanwhile, teachers’ unions provide year-round organizing infrastructure and contributing millions in campaign support, ensuring the Left’s influence is continuous and resilient. “This isn’t activism, it’s a professional, tax-advantaged political operation designed to look local but controlled from afar,” the Club said. “Arizona isn’t changing—it’s being engineered. Conservatives need a clear roadmap, strong counter-infrastructure, and strategic engagement to protect the state’s future and preserve local control.”
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.
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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