by Matthew Holloway | Feb 26, 2025 | Economy, News
By Matthew Holloway |
Congressman Abraham Hamadeh (R-AZ8) has joined Arizona Reps. Andy Biggs (R-AZ5) and Paul Gosar (R-AZ9) in co-sponsoring the Senior Citizens Tax Elimination Act, H.R. 1040, which was introduced earlier this month by Rep. Thomas Massie (R-KY). If enacted, the bill would eliminate the current regime of de facto double taxation on Social Security benefits.
In a press release, Hamadeh explained his support for the bill saying, “Amid all of the FAKE news about Social Security benefits and the Democrats’ fear-mongering weaponization of it, I am glad to bring some REAL news to the residents of Arizona’s 8th Congressional District. Help is on the way.”
He added, “’Prior to 1984, Social Security benefits were exempt from the federal income tax. Congress then enacted legislation to tax a portion of those benefits, with the share gradually increasing as a person’s income rose above a specified income threshold,’ noted a Congressional Research Service report. That is simply unfair, and unnecessary.”
Massie laid out the bill’s impact in his own release saying, “Although seniors have already paid tax on their Social Security contributions via the payroll tax, they are still required to list these benefits as taxable income on their tax returns. This is simply a way for Congress to obtain more revenue for the federal government at the expense of seniors who have already paid into Social Security. My bill would exempt Social Security retirement benefits from taxation and boost the retirement income of millions of older Americans.”
As Hamadeh’s office notes, Senators Tommy Tuberville (R-AL) and Tim Sheehy (R-MT) have already introduced corresponding legislation in the U.S. Senate with Tuberville recently telling Newsmax, “In a day and age where the cost of living has skyrocketed, our seniors should not experience a second tax on their Social Security when they’ve already paid income tax on their paychecks.”
The Senior Citizens Tax Elimination Act was first introduced by former Congressman Ron Paul and has been subsequently introduced by Massie every year since he took office in 2012.
Hamadeh called back to the introduction of the bill by Paul in a statement, “It is my honor – one of the highest honors – to support a bill first introduced by Congressman Ron Paul. The wisdom of the fiscal battles he waged over the years is now becoming evident to everyone thanks to President Donald Trump and his Department of Government Efficiency (DOGE). My hope is that as DOGE dives deeper into our bloated and broken bureaucracies, we will find many opportunities to reduce taxes on hard-working Americans.”
“In fact, my colleagues and I are committed to delivering a ‘big, beautiful bill’ that will deliver tax relief to all taxpaying Americans,” said Congressman Hamadeh. “The Senior Citizens Tax Elimination Act delivers immediate relief to those who need it most — our seniors who built this 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 Matthew Holloway | Feb 25, 2025 | Economy, News
By Matthew Holloway |
Arizona State Rep. Jeff Weninger (R-LD13) has targeted the hidden fees—also known as interchange fees—which are imposed by credit card companies every time a card is used for payment. These fees are charged on every transaction and can range from 1% to 5%. The lawmaker is calling for these fees, which are charged on transaction totals, including taxes, to be reformed to include only pre-tax totals.
Weninger penned an op-ed with the straightforward message that “It’s time to wipe the swipe on taxes.” He called upon members of the Arizona House of Representatives to support HB2629, legislation he has sponsored to force credit card companies to eliminate swipe fees on sales taxes.
He wrote in part, “The credit card industry is dominated by two major players—Visa and Mastercard—who control 90% of payment processing transactions outside of China. These companies are raking in record profits, while Arizona businesses are left footing the bill for an unfair, hidden charge.
“HB2629 will stop this practice and ensure Arizona businesses and consumers are treated fairly. By eliminating swipe fees on sales taxes, we can keep more money in our state’s economy, help small businesses grow, and prevent credit card companies from profiting off of money that should go back to our communities.”
The National Federation of Independent Business (NFIB) announced its support for the bill with NFIB State Director Chad Heinrich explaining in a statement, “HB 2629 will protect small businesses and keep more resources in Arizona for Arizonans. Today, millions of dollars, which could be better spent in Arizona on higher employee wages, better benefits, and business expansion, are instead being sent to out-of-state banks and major credit card companies that profit off Arizona state and local taxes.”
As noted in Weninger’s op-ed, Arizona businesses and consumers combined paid out over $217 million in interchange fees in 2023. According to Weninger, it’s “a fee on a fee that never should have existed in the first place.”
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 Staff Reporter | Feb 24, 2025 | Economy, News
By Staff Reporter |
The Phoenix-based Nikola Corporation filed for bankruptcy this week — Arizona gave millions in incentives and tax credits to the company over the past five years.
Nikola develops electric- and hydrogen-powered vehicles. The company’s bankruptcy comes after years of federal investigations for fraud concerning the company’s innovation and development claims.
In 2019, Nikola received $1.3 million in pre-approved incentives based on projections. That year, projected new jobs were estimated at 400 and the average wage of projected new jobs was estimated at $80,500. The Arizona Commerce Authority (ACA) earned Project of the Year by the Area Development Magazine for bringing on the company.
In 2020, ACA awarded Nikola the highest single pre-approved A-1 incentives grant out of seven awardees for the Arizona Competes Fund Program: $3.5 million. That year, ACA projected Nikola capital investment to be at around $1 billion. Projected new jobs were estimated at over 2,000, with the average wage of projected new jobs at $65,000.
That was the year Nikola had an estimated value of $30 billion.
ACA also gave Nikola a pre-approval for a $7.1 million tax credit. In 2021, ACA then post-approved Nikola for a $6 million tax credit as part of the Qualified Facility Incentive Program. Nikola was one of 19 businesses to receive the award that year.
The company paid $125 million in a settlement to the Securities and Exchange Commission (SEC) that year, though Nikola didn’t claim wrongdoing.
In 2023, ACA pre-approved Nikola for a $3.74 million tax credit as part of the Qualified Facility Incentive Program. Nikola was one of 24 businesses to receive the award that year.
That year, Nikola founder Trevor Milton was convicted of fraud and sentenced to four years in prison for making false and misleading claims to encourage investor demand. Despite resigning from the company in 2020 and the federal investigations into Milton, ACA continued to give millions in financial incentives to Nikola.
The Department of Justice (DOJ) in its announcement of Milton’s sentencing described Nikola’s promise as a mirage:
“Milton made false claims regarding nearly all aspects of Nikola’s business, including: (i) false and misleading statements that the company had early success in creating a ‘fully functioning’ semi-truck prototype known as the ‘Nikola One,’ when MILTON knew the prototype was inoperable; (ii) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as ‘the Badger’ from the ‘ground up’ using Nikola’s parts and technology, when MILTON knew that was not true; (iii) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; and (iv) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Daniel Stefanski | Feb 5, 2025 | Economy, News
By Daniel Stefanski |
A bill to keep unwelcome tax increases away from unsuspecting Arizona taxpayers cleared its first body of the state legislature.
On Monday, the Arizona Senate passed SB 1013 with a 17-12 vote. One Democrat member of the chamber, Senator Burch, did not vote. All Senate Republicans voted to approve the legislation, while all Democrats in attendance voted in opposition.
If passed by the Arizona Legislature and signed into law, the bill would “prohibit the common council of a municipality or the board of supervisors of a county from increasing an assessment, tax or fee without a two-thirds vote of the governing body.”
In a statement accompanying the news of the Senate vote, President Warren Petersen, the sponsor of the bill, said, “I’ve received a number of concerns and complaints from Arizonans who are frustrated with recent hikes on taxes and fees, especially in this era of inflation. We want government to be more efficient with taxpayer dollars, and this is a step in the right direction. This commonsense taxpayer protection requires the same threshold from local governments as the Legislature when raising or imposing fees. We want to make sure government fully funds its obligations, but we also want to protect our citizens from unnecessary taxation.”
Last month, the proposal cleared the Senate Government Committee with a 4-3 vote. All Republicans voted in favor of the bill, while all Democrats registered votes in opposition in committee.
On the Arizona Legislature’s Request to Speak system, representatives from the Republican Liberty Caucus of Arizona, Barry Goldwater Institute for Public Policy Research, Arizona Free Enterprise Club, Arizona Chamber of Commerce, National Federation of Independent Business, Republican Liberty Caucus of Arizona, and Home Builders Association of Central Arizona, signed in to support the bill. Representatives from the Arizona Municipal Water Users Association, City of Casa Grande, Sierra Club – Grand Canyon Chapter, City of Bisbee, Coconino County, the Arizona Center for Economic Progress, League of Arizona Cities and Towns, City of Tucson, signed in to oppose the legislation.
SB 1013 now makes its way to the Arizona House of Representatives for consideration. If passed by the state House, it would then make its way to the Governor’s Office for its fate. Governor Katie Hobbs, a Democrat, would likely veto the bill.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Feb 2, 2025 | Economy, News
By Daniel Stefanski |
An Arizona lawmaker has introduced a bill to solve the murky funding situation with the stadium of the hometown professional baseball franchise.
Last week, State Representative Jeff Weninger filed HB 2704 to “create a dedicated funding source needed to maintain Chase Field and keep it a world class facility for baseball and other events.” The proposal comes as the stadium lease for the Arizona Diamondbacks is set to run its course in 2027.
In a statement accompanying his press release, Weninger, the Chairman of the House Commerce Committee, said, “The Arizona Diamondbacks are an indispensable part of our state’s identify and economy. I’m proud to sponsor HB 2704, which provides a dedicated funding solution to renovate Chase Field and ensure the Diamondbacks remain right here in Arizona where they belong. With the departure of the Coyotes last year, it is more important than ever to take proactive steps to protect the future of our teams and the venues that make them possible.”
Representative Weninger added, “The Arizona Diamondbacks are a pillar of our community, and Chase Field has been a cornerstone of Arizona’s sports and entertainment scene for decades, welcoming millions of fans and creating unforgettable memories. That’s why there’s widespread interest in finding a sustainable solution. HB 2704 is a crucial step toward preserving Chase Field and ensuring it continues to be a world-class venue for generations to come.”
According to the information provided by Weninger’s release, HB 2704 “would recapture sales and income taxes associated with Chase Field and the Arizona Diamondbacks and direct them to a fund dedicated to repairing and maintaining the ballpark. The concept mirrors the Arizona Sports and Tourism Authority, which is responsible for the maintenance and funding of State Farm Stadium – the west valley home of the Arizona Cardinals. The Diamondbacks would also provide most funds necessary for the repairs required for the continued upkeep of their stadium.
The President, CEO, and General Partner of the Arizona Diamondbacks, Derrick Hall, also released a statement to endorse Weninger’s bill and encourage its passage through the Arizona Legislature. He wrote, “We are thrilled with all the momentum and positivity surrounding this legislation. We greatly appreciate the hard work and commitment from all who are delivering this public-private partnership to save baseball at Chase Field. Our ballpark has provided memories to fans and their families for over 27 years, and we will now reestablish and maintain it as one of the premier venues in the game with this funding, and the hundreds of millions the team is committed to investing. This solution avoids any new taxes and demonstrates civic pride for a franchise that cherishes its role in creating jobs, impacting the economy, bettering the community, and providing an exciting product.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
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.
