by Terri Jo Neff | Jun 26, 2021 | Economy, News
By Terri Jo Neff |
Positive reactions continue to come in from business groups in response to the Arizona Legislature’s passage this week of a Fiscal Year 2022 budget package which includes more than $1.3 billion in tax cuts, $1 billion in payments toward state debt, and a transition of the state’s multi-tied income tax system to a flat rate.
The nonprofit, nonpartisan Arizona Tax Research Association called passage of the FY2022 budget “a watershed moment” for Arizona, while Scot Mussi, president of the Arizona Free Enterprise Club, commended the Legislature for passing what he called “historic” tax cuts.
“Every single taxpayer in Arizona will now get a tax cut,” Mussi said. “This is great news for the future of our great state!”
The National Federation of Independent Business, which advocates for small and independent businesses across the country, gave a shout out to the Legislature via Twitter for adopting “landmark property & income tax reforms” which support small businesses. “Your work will allow small businesses to grow our state economy and create more jobs #ForArizonans,” the message said.
On Friday, Gov. Doug Ducey issued a video statement celebrating passage of the 11 bills which make up what he calls the state’s “fiscally conservative, forward-looking budget” that starts July 1.
“Here in Arizona our economy is booming,” said Ducey, thanking House Speaker Rusty Bowers, Senate President Karen Fann, and all the legislators. “New people and businesses are moving here every day. And at the state level that’s resulted in record revenue. With this budget we’re investing those dollars in the things that matter: schools, universities, community colleges, and new roads and bridges, just to name a few.”
Ducey added that “most importantly we’re giving a bulk of the surplus dollars back to the people who earned them.”
A budget signing ceremony must wait until at least Monday when the Senate returns from recess to formally transmit the budget bills to the governor.
Meanwhile, supporters of the voter initiative known as Proposition 208 are promising a court fight over a bill Ducey is also expected to sign next week.
Prop 208 passed last November by a slim margin of 51.75 to 48.25 percent. The purpose of the initiative was to provide additional funding for public and charter school by way of a new 3.5 percent income tax surcharge for many Arizonans.
Among those subject to the new tax surcharge would be thousands of small business owners who currently report business profits on their state personal income tax return. SB1783, however, provides a small business alternate income tax as an option for those who operate as sole proprietors, LLCs, professional partnerships, and S Corporations.
Under the alternate tax, income derived from small business can be reported on a special small business income tax form. This will ensure the income is not added into personal income for purposes of calculating the amount of Prop 208 surcharge a taxpayer owes.
Critics contend SB1783 is a way to unlawfully circumvent the taxation provision of Prop 208. Proponents of the bill point to the many statements made prior to the 2020 General Election which assured business owners that “business income” would not be subject to the surcharge.
by Goldwater Institute | Jun 26, 2021 | Economy, Opinion
By Victor Riches of the Goldwater Institute |
The Arizona Legislature just approved the Goldwater Institute’s plan to dramatically reduce income taxes and simplify the state’s tax code, making Arizona one of the lowest-tax states in the country. This historic reform will restore Arizona’s competitive advantage as a low-tax state and provide a boost for small business owners still struggling to recover from the COVID pandemic.
This plan collapses Arizona’s pre-Prop. 208 tax rates into a single, low 2.5% rate, and it caps the maximum tax rate at 4.5%. This means that no one’s taxes will increase because of Prop. 208. In fact, everyone’s income taxes will go down as a result of this victory.
Additionally, the Goldwater Institute has challenged the constitutionality of Prop. 208, and we’re now awaiting a decision from the Arizona Supreme Court. Fortunately, this new tax reform measure will mitigate the negative effects of Prop. 208—which otherwise would have decimated our economy—and help ensure the state’s future economic success.
>> READ MORE >>>
by Doug Ducey | Jun 26, 2021 | Economy, Opinion
By Doug Ducey, Karen Fann & Rusty Bowers |
>>READ MORE >>>
by Brad Palumbo | Jun 25, 2021 | Economy, Opinion
By Brad Palumbo |
Founding father and the second president of the United States John Adams once said that “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.” What he meant was that objective, raw numbers don’t lie—and this remains true hundreds of years later.
We just got yet another example. A new data analysis from Harvard University, Brown University, and the Bill and Melinda Gates Foundation calculates how different employment levels have been impacted during the pandemic to date. The findings reveal that government lockdown orders devastated workers at the bottom of the financial food chain but left the upper-tier actually better off.
The analysis examined employment levels in January 2020, before the coronavirus spread widely and before lockdown orders and other restrictions on the economy were implemented. It compared them to employment figures from March 31, 2021.
>> READ MORE >>>
by Dale Brewer | Jun 14, 2021 | Economy, Opinion
By Dale Brewer, Voter in San Tan Valley |
As a constituent in LD8, I have been hearing for years from Representative David Cook about his “conservative record.” This has been the song Cook has sung every election, and being completely unchallenged, he has successfully convinced many voters it is true.
But David Cook is no conservative, and him just saying he is, doesn’t make it so. The gig is up; Mr. Cook can’t run away from his very liberal record anymore.
Last week Rep. David Cook singlehandedly killed much needed tax cuts, institutionalizing the damage of Prop 208 and carrying the water for the democrats and Red4Ed. He was the lone Republican in this vote.
In trying to spin his way out of siding with the Dems on opposing tax relief, Cook is telling voters in Pinal County that he cut taxes by $600 million last year. One small problem with his claim–it never happened.
No tax cuts were passed in 2020, as the Pandemic ended session early and a “skinny budget” was passed by the legislature.
Cook didn’t vote to cut our taxes in 2019 by $600 million either. In fact, he raised taxes when he voted to collect a new tax on online sales which has resulted in an over $425M windfall in state and local coffers so far. Although Cook and his Republican colleagues did lower income rates in 2019, this was a part of an effort to stop a tax hike caused by conforming with the Federal Tax Cuts and Jobs Act. Stopping a tax increase is not the same as a tax cut. None of this was very conservative.
Cook didn’t cut our taxes in 2018 either–he again voted to raise them. Cook voted with the Democrats for the now repealed $32 car registration fee most Republicans voted against. That wasn’t Cook “standing against his colleagues” to defend conservative principles. No, that was Cook standing with the Democrats and other liberal Republicans to pass a new $500M tax. This is not conservative.
And In 2017 Cook tried to raise our taxes again when he voted for a bill in the House Transportation committee to increase our gas tax by over 50%. This is not conservative.
This year Cook has been the main champion in the House to permanently increase unemployment benefits. On the heels of a government shutdown of the economy, Rep. Cook sponsored the bill this year that would increase unemployment taxes on small and medium businesses by 14 percent. Businesses are already struggling to hire workers back because they are competing against government paying people more to stay at home. This is not conservative.
Amid a surging border crisis, this year Cook was one of only four Republicans who voted to allow illegal immigrants to qualify for in state tuition, scholarships, and financial aid at Arizona public universities. This is not conservative.
The truth is that the legislature hasn’t cut taxes by $600 million in all of the years David Cook has served in the legislature. We have only seen our taxes go up, with Cook and his Democrat pals leading the way.
This year the state has a historic $4 billion surplus sitting in the coffers that all Republicans, except for David Cook, want to use to ensure real relief to taxpayers with real tax cuts.
Voters of LD8 aren’t fooled anymore, despite the impressive amount of gaslighting Mr. Cook does. David Cook is not a conservative. And it is long overdue he stops pretending to be.
by azfreenews1 | Jun 11, 2021 | Economy, News
By Terri Jo Neff
Gov. Doug Ducey was expected to call a special session any day now to address the legislative stalemate of 11 budget bills which have been the subject of some opposition even among the Republican majority. So his announcement Thursday of a special session related solely to funding for natural disasters caught many lawmakers off guard.
“I am calling a special session to make sure we have the resources needed to contain current wildfires, possible flooding, and any other natural disasters that arise from this emergency,” Ducey said in his announcement. He did not include a start date for the special session but legislators have been told it will take place next week.
News of the special session unrelated to an overall budget package came as Ducey and key Republican legislators representing communities burning under the Telegraph and the Mescal fires toured the damage. It also came one day after the governor said he would be agreeable to working with the Democrat caucus to resolve the budget stalemate that threatens Ducey’s last chance transition Arizona to a flat rate income tax.
Democrats, however, have been outspoken against the current wording of the flat tax portion of the budget package, although some have left the door open for passing the majority of the spending bills, as well as a tax cut funded by Arizona’s more than $1 billion surplus.
It is more likely, however, that Ducey and legislative leaders will need to amend the 11 bills in order to get the necessary 31 votes in the House and 16 votes in the Senate. If that cannot be done in the next week or so, the governor can call another special session dealing exclusively with the budget. Or lawmakers could end up approving with a bare-bones “skinny” budget to avert a state government shutdown on July 1.
Sen. Michelle Ugenti-Rita tweeted Thursday she supports Ducey’s special session to deal with the wildfires. But she could not resist a poke at the governor for his response this year compared to last year during the COVID-19 pandemic.
According to Ugenti-Rita, Ducey’s “leadership solution” last year was “to shutdown the economy, support the legislature prematurely ending session, issuing 50+ executive orders and steadfastly refusing to convene a special session” which she and other lawmakers requested.
“Now, under the guise of another emergency, you want to wait until next week to call the legislature into special session. I find your call for a special session in this scenario incongruent with your past decisions,” she tweeted, pointing out the legislature was in session on Thursday “ready and available to help” but both chambers adjourned until next Monday because key lawmakers were with Ducey touring fire damaged communities.
A vocal critic of this year’s budget package is Sen. Paul Boyer, who has called for one-time tax cuts for one-time revenues. “Rebate taxpayer’s money now,” he tweeted earlier in the week. “That is conservative.”
Some lawmakers in the Republican majority like Boyer object to the amount of the surplus which would get returned to taxpayers as tax cuts under the current budget bills. They point to the fact the cuts would likely also result in less shared revenue to Arizona’s cities and towns, while not focusing enough on the state’s debt, including serious under-funding issues with the Arizona Public Safety Personnel Retirement System.
The Joint Legislative Budget Committee and staff from Ducey’s office are expected to continue working on a proposed compromise over the next few days.
