By the AZ Free Enterprise Club |

PHOENIX – On Monday, Governor Doug Ducey, in his State of the State address, called for the need to “think big” on lowering and reforming taxes.

“My goal has been to make Arizona the best place in America to live, work, and do business – by letting Arizonans keep more of their hard-earned money,” said Ducey, “and having come this far, as other states chase away opportunity with their new taxes, why on earth would we ever want to follow their failed and depressing example?”

“Arizona is now a high-tax state with one of the highest income tax rates, sales tax rates, and business property tax rates in the country,” said Arizona Free Enterprise Club President Scot Mussi. “Bold and swift action needs to be taken to right Arizona’s competitive disadvantage, and the Club is glad to see the governor leading on the issue.”

The Arizona Free Enterprise Club, a nonprofit organization devoted to reducing the income and property tax burden in Arizona, has joined other interested parties in a lawsuit against the latest tax hike embodied in Proposition 208 (Prop 208).

On November 30, 2020, attorneys at the Goldwater Institute, Snell & Wilmer, and Greenberg Traurig filed suit on behalf of a coalition of taxpayers, legislators, and small business groups such as the Arizona Free Enterprise Club, to challenge the legality of Prop 208 and to protect Arizona taxpayers against what they say is an “illegal and ill-conceived measure.”

“Arizona is now a high-tax state with one of the highest income tax rates, sales tax rates, and business property tax rates in the country,” said Arizona Free Enterprise Club President Scot Mussi.

— Free Enterprise Club (@azfec) January 11, 2021

According to the court background materials, “in the fall of 2020, a group of out-of-state unions and special interest groups placed an initiative on the Arizona ballot designed to raise taxes by nearly $1 billion. Although sold as a measure that would only raise taxes on the rich, in reality the tax falls on middle-class wage-earners, particularly owners of small businesses. In fact, half of the people subjected to the tax would be small business owners.”

Should Prop 208 survive legal challenges, critics claim it would “likely drive businesses out of the state and to slow business growth, resulting in the long term in some 124,000 fewer new jobs over the next decade, and a loss of $2.4 billion in state and local taxes.”