by AZ Free Enterprise Club | Jul 7, 2021 | Opinion
By the Free Enterprise Club |
After raking in cash from taxpayers amounting to a staggering $4 billion surplus, Governor Ducey and Republican legislators have delivered big with a historic tax cut this year. At full implementation, the cuts enshrined in SB1827, SB1828, and SB1783 will total $1.8 billion, and this couldn’t have come at a better time.
While Arizona families and small businesses were struggling during covid shutdowns and trying to make ends meet, the tax collector was still busy collecting. And as all Arizonans were already being overtaxed, on the narrowest margin, Proposition 208 was passed threatening a 77% tax hike on many Arizonans and small businesses. The tax cuts in this year’s budget completely neutralize that threat.
The tax cut package will result in a tax cut for all Arizona taxpayers. At full implementation, the current four rates of 2.59%, 3.34%, 4.17%, and 4.5% (with a fifth Prop 208 rate of 8%) will be collapsed into one single rate of 2.5%.
But since Proposition 208 is voter protected, income above $250,000 ($500,000 for married filing jointly) would still be hit with the 3.5% “surcharge,” resulting in a top rate of 6%, leaving Arizona still uncompetitive. The tax cut package takes care of this, too, by capping the top rate any taxpayer will shoulder at 4.5%, or the current top marginal rate.
Finally, holding the Red4Ed Prop 208 proponents to the promise that their tax hike “legally” could not affect small businesses, SB1783 will create an optional alternative small business tax which will have a rate beginning at 3.5% this year, ratcheting down to match the new single individual income rate of 2.5%. This means that small businesses can bifurcate their business income from their personal income, filing it under the alternative small business tax and paying a rate of 2.5% instead of the capped 4.5% rate. To reiterate, this is small business income that by Prop 208 advocates own words was never supposed to be subject to the surcharge. SB1783 codifies that intent…
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by AZ Free Enterprise Club | Jun 7, 2021 | Economy, Opinion
By the Free Enterprise Club |
“15 days to slow the spread.” Do you remember that? It was all the rage in the media in the early days of the COVID-19 pandemic. You’d hear it on news broadcasts. You’d see it in commercials. And you’d read it as you scrolled through the various social media platforms.
But it didn’t take long before those calls to “slow the spread,” became calls to “cancel everything.” And too many government leaders across the country bought into it by instituting huge lockdowns and other draconian measures.
Certainly, COVID was an issue that warranted some action, but it never should have included crushing small businesses or trampling on the rights of the people.
And yet, here we are more than a year later. The states with the most severe COVID restrictions are experiencing much slower economic recovery than those that fully reopened.
Blue states are struggling
California still has not reopened, despite being the first state to lockdown back in March 2020. Finally, after months of inconsistencies, confusing decisions, and hypocrisy from leaders like Governor Newsom, the state appears to be poised to fully reopen by mid-June.
But the outlook isn’t bright. Even with such extreme lockdowns and other measures, California still experienced a deadly surge from COVID. And along with that, its economy is in turmoil with one of the nation’s highest unemployment rates at 8.3%.
Not surprisingly, there’s been a mass exodus from the state, causing it to lose a seat in the House of Representatives. And those that have remained are so fed up that they are trying to recall their governor.
But California is not alone. In a recent report, Michigan has been named as the state with the slowest recovery. Even Governor Whitmer couldn’t help but acknowledge that her radical measures, which at one point included prohibiting citizens from visiting family and friends, couldn’t stop COVID.
And then there’s New York, where Governor Cuomo’s COVID failures have been well documented. Just like California, the state also lost a seat in the House of Representatives due to a significant decline in its population. New York City alone lost approximately 900,000 jobs with a current unemployment rate of 11.4%.
But how do these blue states compare to our own?
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by AZ Free Enterprise Club | May 29, 2021 | Opinion
By the Free Enterprise Club |
Be careful what you wish for. Maybe it’s time for someone to tell that to Mayor Gallego and several other members of the Phoenix City Council.
In case you missed it, last week the council approved a civilian “oversight” office of the police in a 5-4 vote. The Office of Accountability and Transparency, which Mayor Gallego referred to as a “national best practice,” will cost taxpayers nearly $4 million.
In reality, this new office has nothing to do with “accountability” or “transparency.” If it did, then Mayor Gallego and other members of the far left would be honest that this office is nothing more than a politicized endeavor designed to undermine the police. And ultimately, they want to use it to help build momentum toward what the far left really wants: imposing progressive policies in the police department and defunding the police.
But maybe Mayor Gallego ought to check her definition of “national best practice.” Because around the country, efforts to defund the police haven’t exactly gone so well.
Cities at the forefront of the “defund the police” movement, have seen dramatic increases in crime rates and mass departures of police officers. Even CNN can’t help but acknowledge it!
Take Seattle for example. You may remember this major American city being referred to as CHAZ or CHOP during the Black Lives Matter riots last summer. Under pressure to cut police spending, the Seattle City Council redistributed nearly 20% of its police budget this past November. And what was the result? A dramatic increase in homicides and shootings so far in 2021. And this comes after a similar increase in 2020!
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by Terri Jo Neff | May 27, 2021 | News
By Terri Jo Neff |
Senate President Karen Fann will try one more time this week to pull together the 16 votes needed to pass the budget bills, something she could not do Wednesday when one of the 30 senators did not come to work.
The Republican-majority Senate stands in recess until 11 a.m. Thursday at which time several bills are scheduled to be considered, most of which are budget-related. There was hope Wednesday that the 16 Republicans would pass the bills, but Sen. Michelle Ugenti-Rita’s daylong absence quashed that option.
Fann and Majority Leader Sen. Rick Gray need the entire Senate Republican caucus on board, so if it appears the 16 votes are not a sure thing Thursday then Fann can simply recess her chamber until June 10, a plan put into place Wednesday night after House Speaker Rusty Bowyers chose to recess his chamber for several days.
In the meantime, the fate of the months-long negotiated spending budget, tax cuts, and plan to transition Arizona to a flat rate income tax remains uncertain, according to budget-watchers. And that may not bode well for the flat tax plan which Republicans have sought for years.
“Right now, the flat tax proposal is still being negotiated among members to address a couple of concerns,” according to Scot Mussi, head of the Arizona Free Enterprise Club. “The first concern is the alleged impact on cities and towns due to revenue sharing. Cities are arguing that the tax cut will result in a massive cut in shared revenue from the state.”
But Mussi pointed out that flat tax supporters, including AFEC, believe cities are enjoying budget surpluses -in some cities quite sizable surpluses- and continue to receive a large infusion of new revenue from the taxation of online remote sales.
“The second concern was that the proposed tax package included a tranche of special interest tax breaks, which groups like ours oppose,” Mussi said. “It is our understanding that most of these tax breaks, including one for low income housing and another for wealthy investors, will be removed from the plan.”
But Mussi says groups like AFEC continue to support this year’s budget plan -minus the special interest tax breaks.
“Currently, Arizona has one of the highest income tax rates in the nation and we are uncompetitive compared to our low tax neighbors. The proposed tax plan goes a long way toward addressing this problem,” he explained.
With uncertainty over whether Fann has the 16 votes in the Senate and House Speaker Rusty Bowyers has his 31 votes, Mussi says the budget negotiations are likely not over.
“There is still a lot of horse trading occurring, much of which will continue,” he said. “Some of the demands still being made related to the budget is to rein in some of the pork barrel spending, make tweaks to the tax plan to address concerns with the cities, and to address other policy issues such as election integrity and school choice.”
And what about Fann and Bowyers trying to poach support from a few Democrats if not all Republicans are on board soon? Mussi believes the only budget bills Democrats may vote for would be the Education Budget which includes K-12 spending increases. But the legislative leaders are likely to have a hard time getting any further support across the aisle for the rest of the budget, Mussi said.
by AZ Free News | Apr 29, 2021 | News
On Wednesday, the Arizona Senate overwhelmingly voted to pass House Bill 2810, landmark legislation that would reform the state’s civil asset forfeiture law to significantly strengthen innocent Arizonans’ due process and property rights. The bill, HB 2810, sponsored by Rep. Travis Grantham, requires law enforcement to secure a criminal conviction before an individual’s property may be forfeited under the state’s civil asset forfeiture law, under most circumstances.
Currently, law enforcement may seize and keep property from individuals that are never charged or convicted of a criminal offense.
The bill previously passed the House with a strong 57-2 vote, and now heads to Governor Doug Ducey’s desk for his signature.
“This is an historic moment for the due process and property rights in the state of Arizona,” said Lauren Krisai, Senior Policy Analyst for Justice Action Network. “House Bill 2810 ensures that law enforcement cannot permanently take property from innocent Arizonans never charged or convicted of a crime—an egregious process that has gone on for far too long in the state. We thank Rep. Grantham for sponsoring this important bill, and lawmakers from both sides of the aisle for coming together to pass this critical reform. We hope Governor Ducey will sign this bill that better protects the constitutional rights of all Arizonans.”
Currently, Arizona police are under no obligation to return property seized from someone suspected or accused of a crime, regardless of whether a conviction is obtained. In 2018, 54% of all forfeitures in Arizona were not tied to a criminal conviction. To address this crucial issue, House Bill 2810:
- Requires a criminal conviction before most forfeitures may take place;
- Ensures that seized property is linked to a suspected crime;
- Requires law enforcement to return seized property in a timely manner if they decide not to pursue criminal charges or lose the case in court;
- Strengthens innocent owner protections by requiring the state to prove that the property is linked to a crime, and return property if it is not. Current law requires innocent owners to prove that their seized property *is not* connected to a crime.
