by admin | Oct 13, 2022 | News and Updates, Tax
In just a few short months, Arizona will officially have the lowest flat income tax rate in the country. Governor Ducey announced last week that the Department of Revenue will be implementing the final stage of individual income tax rate and bracket reductions to a single 2.5% flat rate in 2023, a year sooner than originally planned. This is great news for Arizona taxpayers and job creators as well as the overall economic outlook of the state for years to come.
Given what is coming out of Washington, D.C. these days, this news couldn’t have come at a better time. Joe Biden has declared war on the U.S. economy—raising taxes on job creators, juicing the IRS with 87,000 new agents, and pushing a spending agenda that has resulted in the Phoenix Metro area having the highest inflation in the country. Arizona families are getting crushed by Sleepy Joe, making this tax cut even more significant.
It is amazing to think that it wasn’t that long ago that our economic fortunes looked a lot different than today. Just two years ago, Arizona was facing the prospect of the largest tax increase in state history—a doubling of our state income tax due to Proposition 208. If allowed to go into effect, Prop 208 would have resulted in Arizona having the 9th highest income tax in the country.
Thankfully, through the work of the GOP-controlled legislature, Governor Ducey, and countless organizations and taxpayers throughout the state, Arizona went from having a top income tax rate of 8% (thanks to Prop 208) to our new 2.5% flat tax. This was accomplished with no help from the Democrats who voted in lockstep against the largest tax cut in state history. One member even called it racist.
As with most major reforms, it wasn’t all smooth sailing once the flat tax was passed in 2021. Immediately after it was signed into law, a group that included the teachers’ union Stand for Children and legislative Democrats worked to block implementation of the tax package and refer the measure to the ballot. But just like Prop 208, this effort failed after the Supreme Court determined, in a lawsuit filed by the Arizona Free Enterprise Club, that their referendum was unconstitutional.
Now, Arizona taxpayers will get to enjoy this massive tax cut starting in 2023. And not only will this flat tax result in smaller tax bills, but it will also bolster Arizona’s economy and jobs in the face of rising inflation and a shrinking GDP at the national level. In fact, it is estimated to bring 8,033 jobs and increase Arizona’s GDP by $1.6 billion next year alone.
After defeating the Left’s tax hike in court, passing the largest tax cut in state history, and successfully defending it from being referred to the ballot, Arizona is now back on track. With our state on the verge of electing Kari Lake as Governor and expanding our legislative majorities with more conservatives, even better days of economic prosperity are on the way.
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 | Oct 6, 2022 | Elections, News and Updates, Tax
In between dodging questions about why she won’t debate Kari Lake and holding school choice funds hostage, Katie Hobbs has been making some curious campaign promises lately. And none have been more suspect than what she claims is her current position on tax hikes.
After dragging her feet on the issue, Hobbs finally made her stance known last month when she declared that she has no plans to raise taxes if elected governor. Then, like a good Democrat who promises everything under the sun, she took it one step further, claiming that she would cut taxes for 800,000 Arizona families.
But anyone who has followed Hobbs’ political career knows that this is just another outrageous lie. During her time in the state legislature, Katie Hobbs regularly opposed tax cuts for families while making it a habit to support multiple tax hikes.
In 2015, while serving as Minority Leader of the Arizona Senate, Hobbs opposed HB2001. This bill, which was passed by the legislature and signed by Governor Ducey, protects taxpayers from paying more in taxes due to inflation. Interestingly enough, inflation is the apparent reason for her new “plan” to cut taxes. It’s actually the first word in one of her latest ads. But if cutting taxes because of inflation was so important to Hobbs, maybe she would care to explain why she voted against HB2001.
Of course, this isn’t the only legislation that calls Hobbs’ tax plan into question.
In 2017, she supported a 4/10 of a cent sales tax increase, costing taxpayers around $500 million annually. Then she got really busy going after your wallet in 2018. During that year, Hobbs supported HB2166, a $32 alternative fuel vehicle license tax that was so unpopular it was repealed after Hobbs left the state legislature. But she didn’t stop there. She also sponsored SB1316, legislation that would have DOUBLED the gas tax. Had this bill been passed, it would have been one of the largest tax hikes in Arizona history! And if that’s not enough, she sponsored SB1324 to hire 131 new auditors and tax collectors at the Arizona Department of Revenue.
That sounds a lot like the part of the “Build Back Broke” plan that creates a slush fund for the IRS to hire 87,000 new agents, doesn’t it?
The fact of the matter is that it was a Republican governor and Republican legislature that delivered historic tax cuts to every single Arizona taxpayer. And thankfully, that relief will now be experienced one year earlier than originally planned.
If she’s so concerned about cutting taxes, you would think Katie Hobbs would be celebrating that. But you’ll get nothing of the sort from her. Hobbs has spent her political career trying to squeeze every possible dollar from your bank account. As you prepare to vote this November, the only question you need to ask yourself is: Do you believe what Hobbs is saying now or her 10-year record of screwing Arizona taxpayers?
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 | Aug 20, 2022 | Elections, News and Updates, Tax
It seems nowadays, the only ones who want to raise taxes are the government and far-left elites. That shouldn’t come as a big surprise. They’ll do whatever it takes to further their radical agenda—especially when their bank accounts go unaffected. But in a country that’s supposed to be governed by representation, too many tax increases in America—including right here in Arizona—are coming down to a simple majority.
Of course, we just saw this at the federal level when the so-called “Inflation Reduction Act” passed on a 51-50 vote in the Senate thanks, in large part, to Senators Mark Kelly and Kyrsten Sinema. Now, because of the slimmest majorities along party lines, taxpayers are left with a $700 billion repackaged version of President Biden’s Build Back Broke plan.
But this issue isn’t limited to the federal government, Congress, or even state legislatures. Just look at what happened with Prop 208 in 2020. This disastrous piece of legislation, which was pushed by out-of-state special interest groups, passed with only 51% of people voting for it. And it would’ve turned Arizona into a high tax state had it not been for the court system killing it once and for all.
Allowing 51% of the population (who probably don’t have to pay the tax increase) to vote to tax the other 49% to pay it, is wrong. And while today’s tax increase may not affect you, tomorrow’s most certainly will.
That’s why it’s critical that the people of Arizona vote YES on Proposition 132.
Introduced as HCR2015 by Rep. Tim Dunn (R-LD13), Prop 132 would require a 60% majority vote of the people on any ballot measure that wants to raise your taxes. Requiring broader support like this puts a check on out-of-state special interests who want to increase Arizona’s taxes to fund their schemes. This already happens in our state legislature where any tax increase requires a super majority. It’s only fair that voters have the same safeguard at the ballot box. We’re a representative government, and if we are asking Arizonans to part with more of their paycheck, it needs to be for something that has broad agreement from every part of the state.
After all, the reality is that at some point, you will be on the wrong end of a close vote. You will be in the minority. Crafting tax policy at the ballot box in this manner only creates class warfare and a tax code of winners and losers.
But it’s not even just about your wallet. These policies harm Arizona’s economy too. Thankfully, we avoided the Prop 208 tax that would have crushed small businesses in our state. But there will be more efforts like it to turn Arizona into a high-tax state like New York or California—the latter having driven away thousands of businesses from the state because of its taxes. In fact, California’s taxes and woke policies got so bad, the state actually ran out of one-way U-hauls!
This isn’t what the people of Arizona want. And it’s not what the people of Arizona deserve. Now, you have the opportunity to make your voice heard. Protect your wallet, and protect Arizona’s economy this November. VOTE YES on Proposition 132.
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 | Aug 4, 2022 | News and Updates, Tax
This week could be the most consequential of Senator Kyrsten Sinema’s tenure in Congress.
Right now, she faces immense pressure from both sides to either accept or reject the recent deal Senator Joe Manchin and Majority Leader Chuck Schumer cobbled together. The so-called “Inflation Reduction Act” is the latest iteration of the long-sought-after “Build Back Better” plan that President Joe Biden touted more than a year ago.
While the name sounds like a good idea, it’s a complete disaster. The bill itself continues to push Green New Deal policies that will lead to even higher prices at the gas station and grocery store. That’s not exactly helping with the inflation reduction that they’re hyping.
In addition, it seeks to expand government-run health plans, allow the government to negotiate the cost of drugs, and create a slush fund for the IRS that would allow them to add 87,000 new agents. But perhaps worst of all, the bill is a significant tax increase.
The Joint Committee on Taxation scores the bill as raising taxes on nearly every American worker. This breaks President Biden’s promise that no family earning less than $400,000 would pay more in taxes. On top of that, it raises more than $16 billion from those earning less than $200,000 and another $14 billion on those earning between $200,000 and $500,000.
And they’re trying to do all of this in the midst of a recession!
Naturally, progressives are privately complaining that the bill does not go far enough in advancing their radical agenda, especially as it relates to climate change. But they are happy to have something. Now, that has put the pressure on Sinema to support the deal. And it’s increasing by the minute.
Since being elected, Sinema has remained largely independent on budget and tax issues, including on the Build Back Broke agenda pushed by Biden. And while she has frustrated both Republicans and Democrats, she’s mostly drawn the ire of leftist progressives who have been calling on her to be primaried in 2024.
But if Sinema wants to keep her seat, she should focus on siding with the people of Arizona on these issues. So, what do they say?
Recent polling shows that a majority of Arizona voters would prefer that Sinema reject the Manchin-Schumer package. 53% say she should vote no on the bill while 50% of voters say they would be less likely to vote for her if she supports the deal.
At a time when 58% of Arizonans believe that inflation is the worst in their lifetimes—and a whopping 63% of Arizona voters say they oppose raising taxes in a recession—now is not the time to raise taxes.
But it’s not just the taxes that the people of Arizona are concerned about.
They don’t want the government negotiating the cost of drugs. Only 14% of voters support this idea while 52% prefer point of sale discounts for seniors buying prescription drugs. And who can blame them? They can clearly see who stands to benefit from such a negotiation, and they know it’s not the people.
Now, this whole entire bill may rest on the shoulders of Arizona Senator Kyrsten Sinema. Will she continue to represent Arizona voters? Or will she cave to the progressive special interests in Washington, D.C.? If she wants to see her tenure extended in 2024, Sinema should remember who she signed up to stand for.
Tell Your US Senators to Vote NO on the Inflation Reducation Act
Renaming the Build Back Broke bill the “Inflation Reduction Act” won’t change the fact that it’s a massive tax and spend agenda that will make our economy worse, not better.
Now it’s time to tell your US Senators, Mark Kelly and Kyrsten Sinema, to oppose this deal. Gas prices are high, inflation is soaring, and Arizona families and small businesses are struggling. We can’t afford more DC spending, tax hikes, corporate welfare, and an IRS that will target hardworking Arizonans. Tell your US Senators to vote NO on the “Inflation Reduction Act!”
by admin | Jul 29, 2022 | News and Updates, Tax
If you like forking over your hard-earned dollars to woke Hollywood liberals, Arizona lawmakers have you covered.
Last month, the state legislature took on the role of “Minions” for the film industry. As you may recall, the Club previously fought against a movie tax credit bill known as SB1708. After passing the Senate, it failed in the House. But in a shady move, Senate Appropriations Chairman David Gowan resurrected the effort through a strike-everything amendment to HB2156, declaring that Hollywood subsidies were his top issue in budget negotiations and any budget agreement was contingent on its passage. A few days later, the bill passed when a handful of Republicans joined every Democrat to support it. Governor Ducey allowed the bill to become law without his signature on July 6th.
The legislation itself gives movie companies that film in Arizona refundable tax credit subsidies up to 15 percent if they spend up to $10 million in production costs, 17.5 percent if they spend between $10 million and $35 million, and 20 percent if they spend over $35 million. And it gives the opportunity for an additional 2.5 percent if the movie company meets other criteria.
But consider this. The average cost of making a movie is between $100 million and $150 million. That means the vast majority of movie companies will benefit from the highest possible percentage!
So, how much Hollywood corporate welfare will Arizona taxpayers be on the hook for?
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- $75 million in 2023
- $100 million in 2024
- And $125 million in 2025 and each year thereafter
Can you believe it? In the midst of historic inflation and a struggling economy, our lawmakers decided it was a good idea to send your money to a billion-dollar industry that doesn’t even need it! (Not even Maverick can save this disaster.)
Those that argued in favor of this bill claim that it will promote workforce development and expansion of the movie industry. But they must have missed the recent study of Hollywood subsidies in New York, Louisiana, Georgia, Connecticut, and Massachusetts. (Or maybe they’re living in “La La Land.”) It found that despite $10 billion in taxpayer spending, there was no statistically significant impact on employment.
That’s right. These programs don’t work. They consistently lose money, and the Joint Legislative Budget Committee already projected that this bill would cost the State of Arizona hundreds of millions of dollars!
On top of all this, the legislation is likely unconstitutional, and litigation is inevitable. The Arizona Supreme Court ruled in 2021 that the government cannot include “anticipated indirect benefits” such as projected sales and tax revenue as part of the consideration with a private party under the Gift Clause in the Arizona Constitution. In other words, Hollywood dazzling lawmakers with projected economic development leading to increased tax revenue is an “irrelevant indirect benefit” that can’t be included in the consideration.
But perhaps worst of all, we can now expect to see our tax dollars being used to create movies bashing America and our values. That’s become Hollywood’s specialty in recent years. And now because of this bill, it will all be done with the State of Arizona serving as the backdrop.
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 | Jul 28, 2022 | News and Updates, Tax
Governor Ducey made the right decision vetoing HB2685, the Maricopa County transportation sales tax increase that was forced through the House and Senate during the final days of the legislative session.
But the reality is, it never should have gotten to his desk.
HB 2685 typified everything that is broken at the Capitol these days: a swampy political culture built around cronyism and backroom deals, legislative leadership pushing major policy through despite overwhelming opposition from their own caucus, and a complete breakdown in statesmanship, evident by the fact that most Republican lawmakers that supported the bill never actually read it or the MAG transportation plan that underpinned the legislation.
It is highly unlikely that a bill like this would have even received a committee hearing five years ago. HB 2685 completely rewrote transportation policy for Maricopa County, shifting billions away from roads and into transit and a regional program slush fund. Yet the bill was rammed through the process from beginning to end, with advocates taking the arrogant position that no real changes could be made to the bill.
Thankfully, Governor Ducey didn’t go along with this charade. He rejected their absurd “take it or leave it” offer and plan, and outlined in his veto letter the multiple problems with HB 2685:
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- The bill lacked transparency and was in fact intentionally misleading. They doubled down on putting their thumb on the scale by requiring the election be held in the Spring in an off-year election cycle when voter turnout is historically low.
- The bill decreased funding for freeways.
- The bill did not capture needed projects, some of which had to be appropriated directly by the legislature in a $1B transportation infrastructure package.
- The transportation tax does not expire until the end of 2025; so, there is no reason to extend the tax now, especially during a time of record inflation when taxpayers are hurting.
Our organization and others opposed to the bill brought up every single one of these points and several others. Each concern was summarily ignored, claimed to be a lie, or turned into hostile gaslighting and ad hominem attacks against opponents of the bill. Proponents took our fact sheet and disseminated a “struck through” version which did not even attempt to counter our information or provide alternative sources. Lawmakers and proponents actively shared explicitly inaccurate information about a bill they purportedly drafted. These bad facts would spread like wildfire at the Capitol, even though they could be easily resolved by simply reading the bill (which again, most lawmakers that supported the bill did not do).
HB2685 was truly Build Back Broke transportation policy, prioritizing money for little-used transit, siphoning dollars from roads for cities to expand bike lanes and trollies, and neglecting the maintenance for freeways and arterials. This was reflected in the lack of support by a majority of Republicans in both chambers, with 21 of 31 Republicans in the House voting against the transit tax.
Yet Republican leadership and the sponsors of the bills did not seem to care they were passing Democrat transportation policy. This as the backdrop of Biden’s Build Back Broke money and policies enraged Republicans across the country. This, as progressive leftists across the state praised the measure.
None of this was normal, and it should be a lesson.
Things are broken at the Capitol, and they are due for a shake-up. And even though the transit tax increase bill should never have made it in its final version to the Governor’s desk, perhaps its veto will be the beginning of better transportation policy to come. It’s hard seeing it get any worse.
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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