by AZ Free News | Jul 14, 2021 | News
The Club’s 2021 legislative scorecard (View House of Representatives and Senate Scorecards) included a thorough review of over 25 key bills, legislative actions and votes taken by lawmakers this session with an emphasis on the Club’s supported or opposed bills. The methodology included other issues important to our grassroots activists such as addressing regulatory relief and ongoing government overreach from the covid-19 pandemic, banning critical race theory in our taxpayer-funded institutions and school choice.
Issues weighed heavily in the scorecard included bills relating to income tax policy and election integrity, both of which were the two main planks of the Club’s agenda for 2021.
In January, the Club began advocating for a major tax cut proposal. Our guidelines were simple, the tax cut must amass to at least $1Billion, it must deal with and offset completely the disastrous impacts of Prop 208, and it must not include any special interest tax carveouts.
Not all legislation was weighted equally but ranked by Club priority. Highly prioritized issues included votes on special interest tax carveout programs, as these are often “truth-test” issues that separate the stalwart conservatives and the lawmakers highly influenced by special interest lobbyists. Club President Scot Mussi expounded, “Our organization was founded to fight for the taxpayer of Arizona. The ability for ‘woke’ corporations to secure major tax carveouts, in some instances zeroing out all tax liability, is a serious threat to a broad-based, low-tax environment for every Arizona family and small business. Our lawmakers shouldn’t be picking winners and losers but representing all Arizona taxpayers.”
Ultimately, several bills became the focus of these efforts and were included in the methodology of the 2021 legislative scorecard. The tax policy bills weighed most significantly in the scorecard included:
- SB1783: (alternative small business tax) establishes an optional alternative small business tax in Arizona that allows business owners to separate wage income from business income when filing and paying their taxes. This bill helped clarify those successful small businesses in the state would not be subject to the Prop 208 surcharge and fulfilled the Club’s goal of offsetting the otherwise irreversible damage of Prop 208.
- SB1828/HB2900 (tax omnibus) & SB1827/HB2899 (Revenue; Budget Reconciliation) included a $1.7B tax cut for all taxpayers by ultimately streamlining Arizona’s income tax rates to 2.5% and an effective marginal rate of 4.5% at the top. These bills fulfilled the Club’s goal of cutting taxes by at least $1B and helped to offset the damage of Prop 208 by setting a cap on how much any Arizonan could pay in income taxes in the state at 4.5%.
- SB1124 (Contributions in aid of construction) This bill was amended to include two programs the Club has opposed for years – the Low Income Housing Tax Credit, and Angel Investors Tax Credit. The combined $185 Million in tax carveouts for wealthy investors, developers and banks included in the two programs are obstacles to good tax reforms that benefit all and only get traction at the legislature because of special interest lobbyists.
Also included in the Club’s legislative priorities were several bills dealing with election integrity. Despite dozens of bills being introduced, five election integrity bills were included in the scorecard. Three of these bills were top Club issues the entire session:
- SB1485 (early voting list; eligibility) Ensures Arizona’s early voters list remains clean and current by implementing a process for removing names of individuals who perpetually do not vote by early mail-in ballot.
- SB1713 (mailing; early ballots; identification) Requires a voter who chooses to vote early by mail to provide their birthday as well as another form of identification such as driver’s license number or social security number.
- HB2569 (elections; private funding; prohibition) Prohibits outside interests from financing the administration of elections by providing grants to government agencies for the implementation of an election including voter registration.
Aside from weighing over 25 key legislative votes, the Club also included discretionary points for certain members which either added or subtracted to their overall score. This inclusion is important as it is often difficult to assess a member’s performance solely based upon their votes. Other criteria used for qualitative points were whether they sponsored particularly bad legislation even if it did not receive a full vote of the body, if they were an obstacle to key caucus or Club issues even if they ultimately voted the “right” way, or if they were responsible for killing key reforms and stalled their advancement to a floor vote.
Given the rigorous criteria in the Club’s 2021 scorecard, the top performing legislators distinguish themselves as faithful conservatives in the caucus. These members consistently fight for limited government, free market principles, low, smart and fair taxes, and individual liberties. The Club Top performers in the Legislature who have earned an A+ in 2021 included:
- Senator Warren Petersen (LD 12)
- Senator J.D. Mesnard (LD 17)
- Rep. Jacqueline Parker (LD 16)
- Rep. Jake Hoffman (LD 12)
- Rep. John Fillmore (LD 16)
- Rep. Joseph Chaplik (LD 23)
- Rep. Shawnna Bolick (LD 20)
- Rep. Travis Grantham (LD 12)
- Rep. Beverly Pingerelli (LD 21)
- Rep. Bret Roberts (LD 11)
- Rep. Gail Griffin (LD 14)
- Rep. Judy Burges (LD 1)
Methodology for Senate Scorecard
Methodology for House Scorecard
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…
>>> READ MORE >>>
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?
READ MORE >>>
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!
>> READ MORE >>>
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.
