by Daniel Stefanski | Jan 26, 2025 | Economy, News
By Daniel Stefanski |
The State of Arizona is fast-tracking a tax reduction policy through the legislature that became a staple of President Donald J. Trump’s campaign platform over the past year.
This week, the Arizona House of Representatives Committee on Ways and Means passed HB 2081, which would exempt taxation on tipped wages from the state’s individual income tax.
State Representative Gail Griffin, a Republican who was the sponsor of this legislation, said, “I worked in the service industry years ago and understand the challenges tipped employees face. Tips are an expression of appreciation from customers for services provided. Tips are gifts and, in my opinion, should not be taxed. HB 2081 ensures that Arizonans who rely on tips to support themselves and their families can keep more of their hard-earned money. I’m grateful to Chairman Olson for making this the committee’s first bill for the session.”
Another Republican lawmaker, State Representative Neal Carter, added, “A key feature of a good taxation system is voluntary compliance and simplicity of administration. Tips are often paid in real time and in strange amounts. Taxing tips simply punishes the honest because strict compliance is difficult to achieve.”
As a candidate for President, Trump announced his plan for no federal taxes on tips back in June in the State of Nevada. Shortly after Trump’s announcement last summer, his Democrat opponent, then-Vice President Kamala Harris, mirrored his proposal in an attempt to woo voters on the campaign stump. On Inauguration Day this week, the newly minted Commander in Chief riffed that he thought his campaign may have secured the State of Nevada’s electoral votes in the November General Election because of that promise.
A poll from The Associated Press-NORC Center for Public Affairs Research earlier this month showed that 54% of respondents would strongly or somewhat favor eliminating taxes on earnings from tips.
The U.S. Bureau of Labor Statistics estimates that there are 2,277,900 waiters and waitresses across the country.
The bill passed the Arizona House committee along a party-line vote – 5-3, with one Democrat member absent.
According to the Arizona Legislature’s Request to Speak system, representatives from the Republican Liberty Caucus of Arizona, Arizona Licensed Beverage Association, and Fraternal Order of Police AZ State Lodge, signed in to support the bill. Representatives from Living United for Change in Arizona, the Arizona Center for Economic Progress, and Rural Arizona Action opposed the legislation.
HB 2081 will soon make its way to the floor of the Arizona House of Representatives for a vote from the full chamber.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Jan 25, 2025 | Opinion
By the Arizona Free Enterprise Club |
As President Trump gets to work cleaning up Joe Biden’s failed economy, the last thing the people of Arizona need is to be sending their hard-earned dollars to woke Hollywood. But that’s exactly what’s happening.
Thanks to a law passed in 2022, movie companies that film in Arizona will begin receiving refundable tax credit subsidies this year—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. Then, to top it all off, these movie companies can get an additional 2.5 percent if they meet other criteria.
But here’s the real kicker. The keyword in all of this is “refundable.” This essentially means that if a movie company qualifies for more credits than they owe in taxes, the State of Arizona sends them a check!
So, how much does this outrageous tax scheme cost the people of Arizona?
Up to $125 million each year!
For that kind of money, there must be at least some kind of return on this investment, right? Nope.
If a company comes to Arizona, films a movie, mentions our state in the credits but decides not to release or distribute the film, it still receives the money.
Yes. You read that right. Arizona taxpayers could be funding Hollywood movies that won’t ever see the light of day…
>>> CONTINUE READING >>>
by Matthew Holloway | Jan 25, 2025 | News
By Matthew Holloway |
Governor Katie Hobbs is now facing a serious legal challenge from the Goldwater Institute, acting on behalf of the Home Builders Association of Central Arizona, to put a stop to what Goldwater described as “one of the most significant bureaucratic overreaches in Arizona’s history.”
On Wednesday, Goldwater announced the lawsuit against Arizona’s Democrat Governor stating that Hobbs is “taking illegal actions” that would worsen the state’s ongoing housing crisis by imposing a certification requirement in parts of Maricopa County that, in addition to showing a 100-year groundwater supply, must also meet the dubious standard of “unmet demand.”
Writing for Goldwater, Stacy Skankey explained, “Although the phrase ‘unmet demand’ does not exist in Arizona law, this new rule now requires homebuilders to show a 100-year groundwater supply across the entire water management area (a specially designated area with a reliance on groundwater) rather than at the site of the proposed development. In other words, if a groundwater shortage is projected anywhere within a management area, the Department of Water Resources now claims that there is insufficient groundwater elsewhere in the Valley.”
As reported by AZ Free News in December, Goldwater penned a letter to the Arizona Department of Water Resources (ADWR) urging the agency under Hobbs to reconsider its “AMA Wide Unmet Demand Rule,” noting that the new rule was in violation of the law having been imposed without legislative approval or via the required rulemaking process.
According to ADWR, “Unmet demand occurs when the model cannot simulate pumping of all demands included, thereby creating a pumping shortfall or deficit. This pumping shortfall or deficit occurs when there is insufficient saturated aquifer to satisfy the pumping demand (i.e., the depth-to-water level reaches bedrock) or when the depth to water exceeds 1,100 feet after 100 years of simulated pumping.”
Essentially, unmet demand occurs when the state’s modeling is insufficient to predict demand. In other words, the basis for shutting down Arizona housing development is that the Hobbs administration’s simulation doesn’t work.
As noted in an op-ed for the AZ Capitol Times by CEO of the Home Builders Association of Central Arizona Jackson Moll and Goldwater Institute Vice President for Litigation Jon Riches, the Phoenix Active Management Area (AMA) Groundwater Model being used by the Hobbs administration, coupled with the ‘unmet demand’ standard, moves the goalposts on developers who have mitigated impact on the state’s water needs for nearly 30 years by replenishing pumped groundwater back into the water table.
Riches said in a statement, “Decisions on vital statewide concerns like the availability of affordable housing and the responsible stewardship of our natural resources should be made through a transparent, democratic process—not imposed by executive fiat.”
Moll added, “Gov. Hobbs’ deeply inaccurate and flawed claim that Arizona is running out of groundwater is having devastating effects on housing affordability in the state, which already ranks among the worst in the country.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Jan 25, 2025 | News
By Daniel Stefanski |
Another Arizona lawmaker is pushing back against the governor’s budget for the upcoming fiscal year.
Earlier this week, Arizona State Representative Gail Griffin issued a scathing response to Governor Katie Hobbs’ recently released budget for Fiscal Year 2026. Griffin, the Chairman of the House Natural Resources, Energy & Water Committee, wrote, “As usual, the Governor talks a big game on water but does little to prioritize the solutions that matter.”
The all-important issue of “water” in Arizona has been a source of great contention over the past two years with the state’s current status of a divided government. In Hobbs’ State of the State address, she said, “As I said when I stood before you last year, we must act now to protect Arizona’s water. And when the Legislature did not, I did. I remain committed to true, bipartisan reform to protect our groundwater. But mark my words, if this Legislature fails to act. I will… Again. Further, any bills that attack our assured water supply program, undermine our water future, or are political cover for this Legislature’s lack of action on water security, will meet my veto pen.”
Hobbs proposed a $3 million investment to create a Colorado River Litigation Fund to “ensure that The Department of Water Resources (ADWR) has the resources to defend Arizona’s interests and water users who depend on the State’s precious Colorado River entitlement.” The governor also requested another six full-time employees for ADWR “to meet the demanding water policy challenges facing Arizona,” among other proposals from her team, including almost five million dollars for renovations to fish hatcheries across the state.
Representative Griffin also stated, “With Governor Hobbs’ latest proposal, it seems the Governor is more interested in building new homes for fish and birds than building new homes for hard-working Arizonans. Nothing in the Governor’s budget does anything to increase the critical supply of for-sale housing or support the American Dream of home ownership.”
Griffin added, “Arizona House Republicans are committed to advancing fiscally responsible solutions that address our critical housing and water supply issues, preserve the American Dream, and unleash economic prosperity in our state while protecting our individual rights and liberties. We will continue to put the interests of Arizona citizens first – and this will be reflected in our ongoing budget negotiations and proposals.”
The longtime Arizona Republican legislator’s comments about housing and water policies mirrored what two Senate lawmakers in her party had to say following the governor’s state of the state address earlier this month. In a video following the speech, Arizona Senate President Warren Petersen said, “We agree with the Governor that home ownership has become unaffordable for many Arizonans… but the Executive’s mandate halting home construction in two of the most booming areas of the valley was irresponsible, and first-time homebuyers are suffering the consequences of sky-high prices.”
Senate President Pro-Tempore T.J. Shope noted, “We must build. We have the water to support the growth. We use the same amount of water today that we did 70 years ago – and we have 6 million more people today! Arizona knows how to conserve water. Right now we have legislation to allow us to continue to grow and build homes while conserving water. Governor, sign our Ag-to-Urban bill. You vetoed it last year. Don’t make the same mistake twice.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jan 25, 2025 | News
By Daniel Stefanski |
An influential women’s organization is cheering on the passage of a key sex-definition bill in an Arizona House of Representatives Committee.
This week, the Arizona House of Representatives Committee on Government passed HB 2062, the Arizona Sex-based Terms Act. The Independent Women’s Voice marked the occasion, sending out a press release to announce the progress of this legislation in the House chamber.
“Rep. Lisa Fink’s legislation to define ‘woman’ so women’s rights aren’t erased is so important. Last year the Arizona legislature passed similar legislation, but Governor Katie Hobbs vetoed the common-sense, pro-woman bill. Hopefully, after the election mandate of 2024, bipartisan passage of similar legislation in Congress, and executive action by President Trump, the legislature can pass this bill quickly, and Gov. Hobbs can make the right choice this year. 2025 is the year for women’s rights in Arizona to be protected,” said Paula Scanlan, legislative liaison for Independent Women Voice.
According to the press release issued by Independent Women’s Voice, this proposal, if enacted into law would do the following:
- “Define common sex-based terms, such as ‘woman,’ ‘man,’ ‘female,’ and ‘male,’ for purposes of state administrative law;
- “Help protect single-sex spaces and opportunities; and
- “Require publicly collected sex-based vital statistics to accurately reflect biology.”
Freshman State Representative Lisa Fink, the bill’s sponsor, wrote, “I am honored to serve Arizona in my capacity as a new member of the Arizona Legislature and vowed to make it a priority to define sex-based words and women’s rights. In Arizona, common sex-based words are used in 107 state statutes and yet lack legal definitions. That is why I introduced House Bill 2062, inspired by Independent Women’s model to restore common sense and ensure our courts have clarity in how to interpret Arizona statutes. With the recent federal bipartisan support for the Protection of Women and Girls in Sports Act, it should be easy for Arizona leaders across the aisle to support this legislation that helps to protect female spaces and opportunities.”
“Rep. Lisa Fink rightly recognizes the need for legislation that defines sex-based terms, and as an Arizona parent, I’m grateful she introduced Arizona House Bill 2062. It’s time to give Governor Hobbs another chance to do the right thing and ensure the 3 million women and girls—including my two daughters—across the state have equal rights and opportunities,” added Christy Narsi, the Phoenix, Arizona, chair and national chapter director of Independent Women’s Network.
HB 2062 advanced from the House committee with a party-line 4-3 vote – four Republicans in support and three Democrats in opposition. It now awaits a vote in the full chamber.
According to the Legislature’s Request to Speak system, a representative from the Center for Arizona Policy signed in to support the bill; while representatives from the AZ Coalition to End Sexual and Domestic Violence, National Association of Social Workers for the Arizona Chapter, American Civil Liberties Union of AZ, Arizona Center for Women’s Advancement, Living United for Change in Arizona, National Council of Jewish Women Arizona, Planned Parenthood Advocates of Arizona, Stonewall Democrats of Arizona, and Human Rights Campaign signed in to oppose the legislation.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
