by Terri Jo Neff | Nov 20, 2021 | News, Politics
By Terri Jo Neff |
The Arizona Secretary of State’s Office announced last week that enough valid signatures were turned in to let voters decide next year whether they support substantially reduced income tax rates set to take effect in 2022 or want to maintain the current higher rates.
But whether voters can actually weigh in on such issues in the November 2022 General Election is something the Arizona Supreme Court will likely be asked to decide.
In June, Gov. Doug Ducey signed an overhaul of Arizona’s income tax system as part of the $12.8 billion budget packet approved by the Legislature. It changes the state’s current five-tier income tax rates -from 2.59 percent up to a 4.5 percent base- to a two-tier plan with lower rates in 2022.
The legislation which created the new tax structure could even trigger a single 2.5 percent tax rate as soon as 2023 if Arizona’s revenues meet certain levels.
The flat tax system also addresses the impacts of Prop 208, which voters narrowly passed last year. Known as the Invest in Education Act, Prop 208 imposed an additional 3.5 percent tax surcharge effective 2021 on any income above $250,000 for a single filers or $500,000 for joint filers. The surcharge is on top of the current 4.5 percent base rate.
The revenue from the surcharge is slated to be used for public K-12 schools, but it does so by kicking Arizona’s highest earners to an 8 percent income tax. This put businesses in the state at a competitive disadvantage with Texas and Nevada which have no income tax, while New Mexico has a top rate of 4.9 percent.
Because the 3.5 percent Prop 208 surcharge was put into law by voters, state lawmakers could not directly undo it. Instead, the new flat tax rate plan would top out at 4.5 percent by absorbing the 3.5 percent surcharge.
However, supporters of Invest in Ed, now known as Invest in Arizona, want to void the new tax rate law despite the fact all Arizonans would share in the projected $1 billion savings. The group is trying to kill the flat rate plan by utilizing a provision of the Arizona Constitution which gives citizens 90 days after the legislative sessions ends to attempt to refer new state laws for voter approval.
Last week Invest in Arizona successfully submitted enough valid petition signatures to get the matter on the ballot next November as Proposition 307. In response to the petition drive, Ducey’s spokesman has continued to champion the new income tax structure, which would ultimately be the lowest flat tax in the country if state revenue targets are met.
“It keeps Arizona competitive,” said C.J. Karamargin. “We are returning tax dollars to the citizens of Arizona.”
Whether new laws dealing with state revenues such as income taxes are eligible for voter referendum has never been ruled on by a state court.
A lawsuit by the Arizona Free Enterprise Club argues that the Arizona Constitution actually prohibits issues related to the support and maintenance of state government to be referred to the ballot. A decision by Judge Katherine Cooper of the Maricopa County Superior Court is expected any day.
Whichever side loses in Cooper’s court is expected to appeal, with the Arizona Supreme Court expected to hear the case eventually.
Another wrinkle in the tax saga is that the Arizona Supreme Court ruled earlier this year that Prop 208 can be challenged on the basis of the state’s constitutional spending limits for K-12 schools. The justices recently sent the matter back to the Maricopa County Superior Court for additional arguments although the case is expected to be back at the Arizona Supreme Court early next year.
by AZ Free News | Nov 10, 2021 | Economy, News
Over 700,000 jobs are expected to be created in Arizona in the next decade, according to a new report from the Arizona Office of Economic Opportunity (OEO).
According to the OEO report, Arizona employment is projected to increase from 3,030,216 jobs in 2020 to 3,751,905 jobs in 2030. This translates to growth of 721,689 jobs, or 2.2 percent annualized growth.
Arizona’s job growth rate will beat out—by more than 3 times—the expected overall U.S. growth rate over the same period. U.S. employment is projected to grow by 0.7 percent annually from 2020, compared to 2.2 percent in Arizona.
The largest job gains are anticipated in the Education and Health Services (23,906 jobs annually) and Professional and Business Services sector. The Education and Health Services and Construction sectors are expected to see the fastest job growth rates at 3.2 percent and 2.7 percent annualized growth respectively. The report predicts job growth in all 15 counties and all sectors excluding government.
According to a recent story, Arizona is recovering jobs lost during the pandemic faster than most other states, with the third-fastest jobs recovery in the nation. This comes on top of forecast-beating revenue collections reported by JLBC, another sign of economic strength. In addition, personal income in Arizona rose last year at a rate faster than nearly any state in the country.
Over the previous decade, Arizona employment increased by 492,645 jobs, or 1.8 percent annual change, to 3,030,216 jobs in 2020 from 2,537,571 jobs in 2010.
Arizona is leading on economic and workforce development programs. Major companies including Intel, Taiwan Semiconductor Manufacturing Company (TSMC) and Lucid Motors have selected Arizona to build and expand their operations. Arizona has emerged as the number one place for new semiconductor investments and was recently dubbed by Forbes as “U.S. Semiconductor Central.”
by AZ Free News | Nov 10, 2021 | News
Governor Doug Ducey ordered flags at all state buildings be lowered to half-staff from sunrise to sunset Friday, November 12, 2021, to honor Maricopa County Sheriff’s Lieutenant Chad Brackman who died on Wednesday when he was struck by a vehicle.
Lieutenant Brackman, a 22-year veteran of the Sheriff’s Office, was struck by a vehicle while conducting traffic control in Scottsdale. He was taken to the hospital where he later succumbed to his injuries. He is survived by his wife and children.
“Arizona is saddened by this terrible tragedy,” said Ducey. “Lieutenant Chad Brackman served his communities and our state honorably, and he had a deep devotion to public safety throughout his 22 years of service. My thoughts and prayers are with his family and loved ones, along with the Maricopa County Sheriff’s Office and the entire law enforcement community. In honor of Lieutenant Brackman’s life and service, I have ordered all flags to be lowered to half-staff.”
by AZ Free Enterprise Club | Nov 7, 2021 | Opinion
By the Arizona Free Enterprise Club |
Devastating. That’s how it felt earlier this week when the Arizona Supreme Court upheld the trial court’s ruling in Arizona School Boards Association v. State of Arizona. This decision strikes down critical reforms contained in a series of Budget Reconciliation Bills passed by lawmakers and signed by Governor Ducey earlier this year.
And it’s a big blow to the people of Arizona.
This past July, Arizona lawmakers took important steps to protect our state from more COVID mandates and government overreach. Among the laws passed were bans on:
- A county, city, or town from issuing COVID ordinances that impact private businesses, schools, churches, or other private entities, including mask mandates.
- K-12 schools from requiring vaccines with an emergency use authorization for in-person attendance.
- The state and any city, town, or county from establishing COVID vaccine passports or requiring COVID vaccines.
- Public universities and community colleges from mandating COVID vaccines and vaccine passports.
- A city, town, county, school board, or charter school from mandating students and teachers to be vaccinated or wear masks.
But COVID wasn’t the only thing these Budget Reconciliation Bills addressed.
>>> CONTINUE READING >>>
by Terri Jo Neff | Nov 5, 2021 | Economy, News
By Terri Jo Neff |
Earlier this month the Arizona Supreme Court agreed with a lower court’s ruling that parts of 4 of the 11 budget bills signed into law by Gov. Doug Ducey this summer are unconstitutional on procedural grounds. The reaction from business owners and community leaders was swift, with many left wondering when and how lawmakers will address the dozens of provisions dropped from those budget bills.
Among those provisions was a prohibition on a county, city, or town from issuing COVID-19 ordinances that impact private businesses, schools, churches, or other private entities, including mask mandates. Other prohibitions would have kept K-12 schools from requiring vaccines with an emergency use authorization for in-person attendance and ensured public universities and community colleges could not mandate COVID vaccines and vaccine passports.
The Arizona Free Enterprise Club (AFEC) describes the Justices’ recent opinion as “devastating” and “a big blow to the people of Arizona.” The organization has drawn attention to the uncertainty and frustration across Arizona at a time when the pandemic impacts are still being felt in the state’s economy, and as individual freedoms are under attack.
As a result, the AFEC is leading the call for the Arizona Legislature and the Governor to immediately address the critical reforms that the Supreme Court struck down.
“They must exhaust every option possible, including special session, to protect Arizonans from more COVID mandates and the bigoted teachings of Critical Race Theory,” according to AFEC. “But make no mistake, while this ruling is devastating, it will not stop the battle over these critical issues. There’s just too much at stake. Because if the uncertainty and frustration caused by these issues are allowed to continue, it would be the most devastating news of all.”
