By Terri Jo Neff
Don’t count your chickens until they hatch. That age old adage came into play Monday for Speaker of the House Rusty Bowers when he was unable to secure a yes vote one of the 31 House Republicans, leading to the defeat of three budget bills before the speaker called it a day.
The 60-member House is now recessed until Thursday while budget negotiators are expected to regroup and figure out how to get Rep. David Cook on board with 11 budget bills which need to be passed by June 30 to avoid a state government shutdown.
Cook voted with every Democrat in the House, leading to the defeat the HB2899 and HB2900, which included a cornerstone piece of budget legislation to transition Arizona to a flat rate income tax. His no-vote also led to the defeat of HB2907, a vital transportation budget bill. All three votes died on a 30 to 30 vote.
A major concern is how to garner Cook’s support without renewing an earlier rift among nearly a dozen Republicans who last week were demanding major amendments be made to some of the budget bills. Their dissension led to an 11-day recess that only ended Monday when Bowers called everyone back to work.
It is unclear why Cook remained the only member of the House Republican Caucus to not support any of the bills or amendments put forth for vote Monday. And if Cook had a reason, he wasn’t publicly sharing it.
Others, however, had plenty to say about Cook’s votes, including the Arizona Free Enterprise Club (AFEC). In a tweet, the small business groups tweeted “Shame on Rep. David Cook” after he voted with Democrats to protect the Prop 208 tax hike on small business owners.
“If David Cook continues to carry the water for Red4Ed and the Unions, Arizona will remain one of the HIGHEST small business income tax states in the country!” the tweet read.
One longtime lobbyist quipped, “yep, not a good look to seem left of the Lefties.”
Even the Republican Liberty Caucus turned on Cook, stating he helped Democrats “block the tax cuts in the current budget proposal” even though Cook has been open for several weeks about his displeasure with the budget that came to the House and Senate with Gov. Doug Ducey’s blessing.
For AFEC’s president Scot Mussi, the original budget package included some concerning special interest tax incentives, which he described as giveaways benefiting a few select businesses and industries that were unnecessary and unpopular within the Republican majority in the House.
Shame on Rep. David Cook, the ONLY REPUBLICAN voting with Democrats to protect the Prop 208 tax hike on small business. If David Cook continues to carry the water for Red4Ed and the Unions, Arizona will remain one of the HIGHEST small business income tax states in the country! pic.twitter.com/P2QOS8kAHF
— Free Enterprise Club (@azfec) June 7, 2021
Yet Mussi believed those provisions would be removed via amendments on Monday so that all 31 Republicans would be on board. Instead, every amendment put forth for the three bills considered Monday were defeated, as were the bills themselves.
As Republicans attack Cook’s votes, others like Mussi are hopeful a compromise can be worked out, so that tax cuts and tax relief can get approved. That includes the plan to transition Arizona over three years to a flat rate income tax. And Mussi says don’t believe the arguments that the budget bills are simply designed for the rich, particularly with a flat rate tax plan.
It is important to note, Mussi explained, that the recent passage of Proposition 208 now has Arizona with the ninth highest small business tax rate in the country. And Arizona’s rate is higher than nearby Nevada, Utah, Colorado, New Mexico and Texas.
“The reality is that even after the tax cuts are implemented, high income earners will still be paying nearly twice as much (4.5%) as low and middle income households (2.5%),” he explained to AZ Free News. “Additionally, opponents of the tax plan leave out the fact that much of the tax relief will go to small business owners. This tax cut package makes Arizona competitive again for small business, something opponents to the plan would not like to see happen.”