by admin | Mar 3, 2023 | Corporate Welfare, News and Updates, Tax
No one likes to pay taxes. So, understandably, businesses who can afford to hire lobbyists go to the state capitol every year to figure out how to pay less of them. Some of these large corporations have been so successful, they don’t pay any taxes at all.
Take, for example, the beneficiaries of the R&D tax credit program, which in Arizona is so generous, there is an almost $2 billion carryforward of accrued credits which can be applied for 10 years. This effectively means that there are too many credits and not enough tax liability to absorb them. How would you like the ability to not pay taxes for the next decade?
For “small” businesses with fewer than 150 employees, they are eligible for a “refund” of up to 75% of the excess credits, capped at $5M every year. There is a word for a business receiving a tax refund when you have zero tax liability—it is a subsidy. Any tax system that excludes some businesses from paying while making everyone else pick up the tab is dubious tax policy. But to then allow those same businesses to collect additional subsidies—paid for by all other taxpayers—is downright wrong. It is nothing more than government redistribution to the politically connected.
It is also likely unconstitutional. For good reason, the framers of Arizona’s Constitution were suspicious of corporate interests accruing political power that outsized average taxpayers, seizing preferential treatment for themselves at the expense of everyone else. As such, Article 9, Section 7 of the Constitution, also known as “The Gift Clause,” prohibits donations, grants, or subsidies from the government to corporate or private interests. A refundable tax credit is irrefutably a subsidy.
That has not stopped lawmakers and lobbyists from pushing this year’s expansion of the program through SB1562. This bill would expand the existing program for “small” firms receiving refundable credits from $5M to $10M a year and creates a new program that allows up to $50M a year in unused credits by larger companies to be converted $0.75 on the dollar (i.e. made refundable) for reinvestment.
This is a massive expansion in the refundability of the program and lays the groundwork for all $2 billion to be given away in subsidies to big businesses. And considering the state only generates $850M a year in corporate taxes, lawmakers should instead look to cut corporate income taxes across the board, rather than look to creative ways to hand out $2B in subsidies.
Proponents may argue that these aren’t really subsidies, as the money must be used for qualifying reinvestment projects and that taxpayers ultimately benefit because these projects are a public good because they must be used for “sustainability” or water-saving capital projects or for various workforce development projects or tuition reimbursement. Well, this is a stretch to say the least. What business wouldn’t want regular capital projects designed to save them money overall or training, education, and employee benefits such as tuition reimbursement defrayed? While schemes such as Bernie Sanders “free” tuition to attend woke universities, compliments of the taxpayers, are wildly unpopular with the general public, SB1562 is a creative repackaging. The only hook is, to have your tuition footed by taxpayers, you have to work for a politically connected corporation.
In reality, there isn’t a difference to a business in giving them a bag of cash or reimbursing their normal business costs—it all serves their bottom line. Unfortunately for every other taxpayer, it comes out of their pocketbooks. Despite the army of lobbyists hired to push for SB1562, we hope taxpayers ultimately win the battle this year to expand corporate welfare at the legislature.
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by admin | Mar 2, 2023 | News and Updates, Tax
Who wouldn’t want more money in their pocket? As Bidenflation continues to crush the American people—and in particular the people of Arizona—our elected leaders should be looking for every way possible to provide relief.
Just look at the anti-tax mood among Arizona voters this past November. They rejected Prop 310, which would have increased the statewide sales tax by 0.1% to fund fire districts throughout Arizona. They voted down ill-conceived transportation taxes in Pinal County and Kingman. And they passed Prop 132 to protect against future tax increases. That should be proof enough that Arizonans want to ensure that their hard-earned dollars stay in their wallets. Now, a new bill recently passed by the Arizona Senate would do just that.
Sponsored by Republican Senator J.D. Mesnard, SB1577 would require the Joint Legislative Budget Committee to examine total revenue coming into the state. If they determine that there will be an ongoing budget surplus, the Arizona Department of Revenue will automatically apply half of the surplus toward a reduction in the individual income tax, which currently sits at a flat rate of 2.5%. And with Arizona currently sitting on a multi-billion dollar budget surplus, that means you would keep more of your money sooner rather than later.
Of course, Democrats and other liberal groups are up in arms. The Arizona Center for Empowerment (ACE)—a leftist 501(c)(3) that’s been known to manipulate the tax code—even referred to this bill as an economic attack on our communities in a tweet last month. You read that right. They believe that cutting taxes for every person in Arizona who earns an income is an attack.
Maybe someone should tell ACE that it’s not just the state of Arizona sitting on a pile of cash. Many of our cities and towns are too. And the real attack is continuing to take money from Arizona citizens while city, state, and local governments stockpile more, and more, and more. The fact is that this is a great bill for every citizen in our state and will give them much-needed relief in the midst of a worsening economy, rising inflation, and high gas prices under President Biden.
But perhaps the left’s greatest concern is that they may not be able to rely on Katie Hobbs’ active veto pen to stop this one. Because if Hobbs does decide to veto it, the Arizona Senate also passed SCR1035, a ballot measure that would give voters the opportunity to approve this same exact tax cut. And given the recent attitude of the majority of Arizonans to taxes, they would likely look quite favorably upon SCR1035.
As both these bills now await their fate in the Arizona House, Republicans should look to continue the momentum from passing the largest tax cut in state history last year. It’s time to pass SCR1035 and send SB1577 to Katie Hobbs’ desk. She has a 10-year history of screwing taxpayers. Let’s see if she’s willing to do it again.
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.
by admin | Feb 23, 2023 | Misc, News and Updates
Racist policies have no business in Arizona. And in 2010, our state’s voters made that clear when they passed Proposition 107. This amendment to Arizona’s Constitution banned affirmative action programs in the state that were administered by statewide or local units of government, including state agencies, cities, counties, and school districts. But as we’ve become all too familiar with here in the U.S. and the state of Arizona, politicians and bureaucrats have figured out ways to skirt the language in our constitution. That’s led to where we are today.
Under the guise of words that sound harmless enough like “diversity,” “equity,” and “inclusion” (DEI), Critical Race Theory (CRT) and similar programs largely flew under the radar and have been used to indoctrinate our students. Floods of parents eventually caught on, making it their mission to stop the invasion of CRT and DEI in our school districts. And while the newly elected Superintendent of Public Instruction, Tom Horne, has already taken steps to stop such indoctrination in our schools, there’s more work to be done.
After all, it’s not just students that have been affected. Many governmental entities have been choosing who to hire or contract with based on race. Take our state’s universities for example. According to a recent report from the Goldwater Institute, Arizona’s public universities are compelling job applicants to pledge support for progressive, racialized notions of DEI and CRT-based terminology in order to be hired. As of last fall, Arizona State University (ASU) required diversity statements from approximately 81 percent of job applicants. Northern Arizona University required diversity statements from 73 percent of job applicants. And the University of Arizona required diversity statements from 28 percent of job applicants.
It’s bad enough that over 200 educators from across Arizona voluntarily pledged to teach CRT and all other social-justice-oriented curriculum to children, regardless of the law or parents’ wishes. But ASU is forcing 81 percent of job applicants to sign these DEI loyalty oaths in order to have a chance at getting hired?!?
It’s time to put a stop to this blatant racism. And SCR1024 is the perfect solution. This bill would refer to the ballot an amendment to Arizona’s Constitution that would stop DEI and CRT from being pushed in our K-12 public schools and public universities. And it would prohibit governmental entities from making any-race-based decisions related to hiring or contracting.
Most importantly, SCR1024 would put the issue in front of voters and give the people of Arizona a chance to make their voices heard. And just like with affirmative action in 2010, there’s no doubt that it would show that Arizonans want CRT and DEI out of our state for good.
The fact is that slavery, racial discrimination, and racism are inconsistent with the founding principles of our nation. That’s why we fought a civil war to eliminate the first, waged political campaigns to get rid of the second, and made the third unacceptable in the court of public opinion. But CRT and DEI policies only create division while threatening to make racial discrimination legal again. Enough is enough. It’s time to give voters the chance to prohibit these racist policies once and for all.
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.
by admin | Feb 16, 2023 | Misc, News and Updates
Katie Hobbs’ reign as governor of Arizona is off to a rough start. She was booed at the Phoenix Open this past weekend. She looked foolish in an interview before the Super Bowl with Fox News Sunday host Shannon Bream—who called out Hobbs for opposing school choice even though she attended a private school. And her pick to lead the Arizona Democratic Party, Maricopa County Supervisor Steve Gallardo, was rejected.
That’s not a good look for a governor who’s been in office just over a month. And it’s probably why, at this point, Hobbs has chosen to rule by executive action. But her latest failure may be her worst to date.
Earlier this week, Hobbs’ pick to lead the Department of Health Services (DHS), Dr. Theresa Cullen, failed miserably when the Senate rejected her nomination. Back in December, Dr. Cullen was among the first cabinet members Hobbs announced for her term as Arizona governor. And it was destined to be a disaster. As the Director of the Pima County Public Health Department since June 2020, Dr. Cullen mandated masks, shuttered schools, and prided herself on locking down the county during COVID. She imposed an illegal “voluntary” curfew from 10 pm to 5 am for residents. And she tried to force vaccines while even going so far as to say, “It’s the ultimate arrogance and privilege to think that you don’t need to get immunized.”
This is who Katie Hobbs nominated to oversee our state’s health department. And it was Radical Left appointees like Dr. Cullen that prompted Senate President Warren Petersen to form the Arizona Senate Committee on Director Nominations to recommend a course of action for the Senate to take on each individual. After vetting Dr. Cullen’s past, that committee called into question her ability to lead the DHS and voted against recommending her nomination to the Senate. The Senate then followed suit and officially rejected her. But it can’t stop there.
Hobbs is well aware that we have a divided government that can keep her in check at the legislature. And it’s clear that she plans to do most of her damage through the administrative state. That’s why Republican lawmakers must be prepared to fight back against her radical appointments to various boards, commissions, and state agencies. After all, Dr. Theresa Cullen isn’t the only one.
Just look at who Hobbs nominated for the Department of Environmental Quality (DEQ). Karen Peters is currently the Deputy City Manager for the city of Phoenix, and she is responsible for the city’s environmental plan that dictated it become a C40 city. C40 is a network of mayors who are committed to forcing Green New Deal mandates in their respective cities. As a part of this absurd plan, Phoenix essentially wants to reduce emissions and ban fossil fuels. And to do so, it would require transportation demand management, which basically means that it would track people’s mileage and fine them for driving too far.
It’s bad enough that Hobbs has already pledged to install more electric vehicle charging stations—which have been proven to provide no environmental friendliness—while pushing for an ill-advised commuter rail in Phoenix. If Peters’ nomination is approved, we can expect even more extreme policies when it comes to so-called climate change.
But the Republican-led legislature can put a stop to Peters—and any other radical leftists that Hobbs tries to push as a part of her cabinet. Stopping Dr. Theresa Cullen was a great start, but there’s more work to be done. Now, our lawmakers must be willing to do whatever it takes to expose Hobbs’ nominations. Otherwise, Arizona could start to look like another California.
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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by admin | Feb 9, 2023 | Misc, News and Updates, Uncategorized
Katie Hobbs certainly seems to like power. That’s probably why she was so giddy with laughter and excitement during her swearing-in ceremony last month. Now, she’s gotten to work. And despite her claims that Republicans and Democrats will have an open door to her office to get to work on bipartisan compromise, her preferred method appears to be executive action.
In just over a month since beginning her reign as governor, Hobbs has already signed seven executive orders. And there’s no sign that she’ll stop there. Her first executive order, prohibiting gender identity discrimination in state employment and contracts, was particularly eye-opening. Consider it a small taste of the woke agenda Hobbs is looking to implement over the next four years. And while it’s good to see that groups like the Arizona Freedom Caucus are planning to file a lawsuit challenging the constitutionality of such an order, it will take more than that to stop Hobbs from overstepping her authority.
If there’s anything that the past few years should have taught us, it’s that Democrats, in particular, have a strong thirst for executive overreach. In just his first two months in office, President Biden signed 37 executive orders, 13 presidential memoranda, 24 proclamations, and seven notices. And in his first two weeks alone, he had already signed more than double the number of executive orders signed by President Trump in his first month. Biden loves to talk about protecting democracy, but his actions prove otherwise.
Then, of course, there’s Michigan’s infamous Governor Gretchen Whitmer, whose appetite for power rose to new levels during the COVID-19 pandemic. In April 2020, Whitmer signed one of the most restrictive stay-at-home orders in the country. It prevented the people of Michigan from traveling to in-state vacation residences and using a motorboat. And it mandated large stores to close areas dedicated to carpeting, flooring, furniture, garden centers, plant nurseries, and paint. Some stores even went so far as to put caution tape around such areas. And while the Michigan Supreme Court eventually struck down Whitmer’s orders months later, the damage had already been done.
Arizona certainly hasn’t been immune to government overreach in the past. During COVID, various government officials throughout the state used emergency powers to restrict freedom and some even used it as an opportunity to declare climate emergencies! Now, with Hobbs in office and Arizona’s broad allowance of emergency powers for the executive, we can expect more of the same—or maybe even Gretchen Whitmer 2.0. Given her chosen person to head up the Department of Health Services—a radical social justice warrior that wants “health equity”—Hobbs is the single biggest threat to medical freedom in the state of Arizona.
That’s why it is critical to put this issue in front of Arizona voters as soon as possible. And a new bill sponsored by Reps. Joseph Chaplik (R-LD03) and Alex Kolodin (R-LD03) is designed to do just that. HCR2039, which would be subject to voter approval, would terminate a governor’s state of emergency and any emergency powers after 30 days, unless extended by Concurrent Resolution of the legislature. It would also allow the legislature to declare the end of a state emergency before the 30-day period by Concurrent Resolution.
With Hobbs prepared to rule by executive action for the foreseeable future, this bill is an important first step to limiting her powers. The people of Arizona have been through a lot over the past few years. Now, the Republican-led legislature needs to show that it won’t let the governor’s emergency powers destroy their lives again by passing HCR2039.
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.
by admin | Feb 2, 2023 | Misc, News and Updates
It’s always a good day when an elected official holds to his campaign promises. And as the newly elected Superintendent of Public Instruction, Tom Horne has done just that. During his campaign, Tom said he would make it a priority to stop indoctrination like Critical Race Theory while fighting back against cancel culture and improving student performance. Last week, he took important steps to make this a reality.
Under Tom’s direction, the Arizona Department of Education (ADE) has eliminated social-emotional learning (SEL) from its administration. Among his first moves, Tom has not only removed references to SEL, but he has gotten rid of other leftist initiatives from former Superintendent Kathy Hoffman like the division of Equity, Diversity, and Inclusion along with sex chat rooms for minors like “Queer Chat.”
But while Tom is working hard to end the woke indoctrination of our students, he’s not stopping there. He’s actually placing a renewed focus on what our schools should be prioritizing: academics. Take the ADE’s recent annual conference for teachers, principals, and other educators, for example. Before the conference, the ADE canceled SEL presentations that had been planned under the previous administration on topics like racial trauma, creating a culture of care, and diversity and equity skills for school leaders. And what did Tom replace them with? Sessions on improving math instruction and how to improve a student’s academic performance.
That should be something we can all get behind, right? After all, data from the National Assessment of Education Progress shows that students in Arizona suffered severe learning losses in math and nominal losses in reading as a result of remote learning during COVID.
But as you might expect, the Left is already in an uproar. Believe it or not, several “education consultants” who had their presentations canceled at the ADE conference actually claimed that it would hurt students. That’s right. They think that replacing SEL training with training on how to improve academic achievement—especially in math—will be harmful to children. You can’t make this stuff up.
These so-called “education consultants” must have missed the part where the majority of Arizona’s students have been failing the statewide assessment. And they must not have been paying attention to the latest ACT scoring data, which shows that the average Arizona student doesn’t achieve an ACT score recommended as a minimum by our state universities. Or maybe they just have their own agenda.
The fact is that SEL has been receiving millions of dollars in funding right here in the state of Arizona. And plenty of our state’s school staff—like counselors—have been trained in its controversial theories and ideologies. But what has that gotten us? Learning loss and lower test scores.
It’s time to purge SEL from our schools entirely and put that money toward students and improving teacher salaries. Our children deserve a real education that gives them the best opportunity for success in the future. Thankfully, Tom Horne is proving he’s the right man for the job.
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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