Mesnard Hopes His Responsibility For Historic Tax Cuts Lands Him Back In State Senate

Mesnard Hopes His Responsibility For Historic Tax Cuts Lands Him Back In State Senate

by | Aug 26, 2024 | Economy, News

By Staff Reporter |

One of the lawmakers responsible for the state’s historic income and small business tax reduction law is key to maintaining Republican control of the Arizona Senate.

State Senator J.D. Mesnard is running for re-election to Arizona Legislative District 13, which covers Chandler, Gilbert, and Sun Lakes in the East Valley of the Phoenix-metro area. Mesnard first entered the state legislature in January 2011 in the Arizona House of Representatives, and he served eight years in that chamber, including two years as the Speaker of the House. In November 2018, after being termed out of the House, Mesnard won his election to the state Senate.

Over his time in the Arizona Legislature, Mesnard has proven himself to be one of the top fiscal responsibility hawks in either chamber. On his campaign website, he addresses his thoughts on this issue, writing, “I support keeping taxes as low as possible, and we can’t have low taxes with reckless government spending. The fact is, the more government spends, the more we pay for it in higher taxes and/or saddle future generations with unsustainable debt. That doesn’t mean that all government spending is bad. For instance, funding public safety, a quality education system, and infrastructure are all necessary public goods. But I also believe that state government should follow the same financial guidelines that any responsible individual or family would follow: spend only what’s necessary, don’t rack up debt, invest in your learning, save for the future, and when times get tough, find responsible ways to trim.”

In 2021, Mesnard was responsible for a historic tax reform proposal that made its way through the Arizona Legislature and into law – SB 1828. This legislation ushered in a flat tax on individual incomes of Arizonans.

Mesnard was also the author of SB 1783, which lowered taxes on small businesses. The bill passed the state legislature and was signed by then-Republican Governor Doug Ducey.

After signing the bill into law in July 2021, Ducey recognized Mesnard for his efforts, when he said, “This tax cut will keep Arizona competitive for small businesses already operating here and new businesses flocking here every day. After a year as tough as the last, we should not be raising taxes on our small businesses — we should be cutting their taxes. That’s exactly what Senate Bill 1783 does. Arizona has now passed the largest tax cut in state history and will have the lowest flat tax in the country. My thanks go out to Senator J.D. Mesnard and Representative Ben Toma for their leadership on this issue.”

Mesnard added, “Small businesses are the backbone of our economy and integral to the future success of our state. Small businesses should be able to grow and reinvest in themselves without being forced to pay astronomical taxes. Rather, government should get out of the way so that they can thrive. That’s why I’m so grateful for the support of Governor Ducey and my colleagues in the Legislature.”

Two staunch free-market advocates Tim Phillips (President of Americans for Prosperity) and Grover Norquist (President of Americans for Tax Reform) wrote a piece in Newsweek, praising the accomplished feat of the Arizona Legislature, spearheaded by Mesnard, and Ducey. They stated, “Arizona, on the other hand, provides a good example: lower the tax rates to let people keep more of what they earn and invest in what they care about most. Limit government spending to grow no faster than the incomes of the citizens who pay the taxes. Create a magnet for job-creating investment and hardworking Americans who simply wish to be left alone to work hard, take care of their families and support their communities.”

Phillips and Norquist put the finishing flourish on their thoughts by saying, “The Arizona reform is a positive model and one that should be followed by other states and the federal government.”

When the Arizona Supreme Court gave the green light for these tax reforms to go into effect in a highly anticipated ruling, Arizona Free Enterprise President Scot Mussi said, “Today’s decision from the Arizona Supreme Court is a big win for taxpayers in our state. The legislature passed historic tax cuts last year that benefit all Arizona taxpayers. It’s time for Invest in Arizona and out-of-state special interest groups to accept this reality and stop making a farce of the referendum process.”

Mesnard touted the progress of his historic legislation in a campaign newsletter in January 2023, saying, “The historic tax reform that I championed in 2021 is now in effect for income earned this year – a full year ahead of schedule thanks to strong government revenues. Valued at more than $2 billion, this reform reduced individual tax rates to 2.5%, resulting in a tax cut for every single Arizona family and Arizona having the lowest flat tax in the nation.”

The east valley lawmaker added, “Depending on your tax decisions, if you choose to lower your withholding rates this year, you will be able to keep more of your own hard-earned dollars with each paycheck that hits your checking account. That will help take some of the edge off sticker shock at the grocery store.”

According to the Arizona Independent Redistricting Commission, Legislative District 13 is one of the most competitive in the state, with a 1.6% vote spread between Republicans and Democrats in the past nine statewide elections. In those contests, Republicans have won five times, compared to four for Democrats.

Mesnard will be facing off against Democrat nominee, Sharon Winters, in the November General Election. On his website, Mesnard asks voters to give him another term in the state senate, writing, “Now we face historic economic challenges that require someone with the right experience and a track record of success to navigate. That’s why I need your vote. Let me continue using my diverse background, which includes husband (to a registered nurse), father, professor and small business owner, with master’s degrees in business and public administration, to keep delivering results for you.”

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Arizona Is Only Hurting Itself With High Income Taxes. Why A Flat Rate Is Smarter

Arizona Is Only Hurting Itself With High Income Taxes. Why A Flat Rate Is Smarter

by | May 12, 2021 | Opinion

By Grover Norquist |

Arizona’s income tax – with a top rate of 8% – is not competitive. Reducing and eventually eliminating the state income tax would be a huge win for all Arizonans.

Individual taxpayers and families would be able to keep more of their hard-earned paychecks. Small businesses would be able to invest more in their employees. And Arizona would be much more attractive to businesses and investment, bringing new jobs and opportunities to the state.

Over the last decade, millions of people and jobs have been fleeing from high-tax states to states that do not impose income taxes. The ability to work remotely will only amplify this trend.

Unfortunately, Arizona’s current income tax puts it on the wrong side of this equation.

Arizona is a high tax state and slipping further

Under the status quo, Arizona’s income tax – with a top rate of 8% – is not competitive. Eight states – including Arizona’s neighbor Nevada and nearby Texas – do not impose individual income taxes of any kind. Thirty-two more states – count Arizona’s neighbors Colorado, New Mexico and Utah, among them – have top rates that are lower than Arizona’s.

Even worse for Arizona, the list of states that do not impose income taxes will continue to grow. Mississippi Gov. Tate Reeves, New Hampshire Gov. Chris Sununu, West Virginia Gov. Jim Justice, and Arkansas Lt. Gov. Tim Griffin are among several key lawmakers that are working to eliminate income taxes in their states.

Unless Arizona begins reducing and phasing out its income tax, it will continue to fall behind.

The good news is Arizona’s leaders refuse to sit back and allow it to fail. Gov. Doug Ducey, Sen. J.D. Mesnard, President Pro Tem Vince Leach, Majority Leader Ben Toma and many others are eager to provide pro-growth income tax relief.

A flat tax is a much better way to go

They are working on a tax plan that would streamline Arizona’s current four-bracket system (five brackets when accounting for the Proposition 208 “surcharge” of 3.5% that will be imposed on certain income, resulting in top rate of 8%) down to a flat tax of 2.5%.

That would be lower than its current bottom rate of 2.59% (with adjustments being made to ensure that even with the Proposition 208 “surcharge,” which would effectively create two brackets, the top rate would not be higher than 4.5%).

Flat taxes protect all taxpayers from tax increases. Under a progressive income tax, taxpayers are divided into small groups, allowing politicians to rob them one by one. Raising a flat tax, on the other hand, is much more difficult because politicians are forced to answer to every single income tax filer.

Making this news even better, there is a serious effort to include a full phase-out of the income tax (excluding the Proposition 208 “surcharge”) over time through the use of revenue triggers, a responsible way for states to cut taxes without getting ahead of their ski tips.

It could bring new jobs, higher wages

If such a provision were included, Arizona would be a model for other states to copy.

In addition to reducing income tax rates, the Republican tax plan would provide even more income tax relief by quadrupling the child tax credit and by coupling the standard deduction to inflation.

The Republican tax plan would be a huge victory for every single Arizonan. Reducing and, ideally, eliminating the income tax would attract businesses looking to expand, investors looking for growing economies with hospitable tax climates and families looking for greater prosperity.

This would bring new jobs and opportunities to current Arizona residents.

Income tax relief would also allow small businesses, which overwhelmingly pay their income taxes on the personal side of the code, to invest in higher wages, and would allow the hardworking people of Arizona to keep more of their paychecks.

Arizona’s future will be brighter if it begins reducing and eliminating the state income tax.

Grover Norquist is president of Americans for Tax Reform, a nonprofit taxpayer advocacy organization that was founded at the request of President Ronald Reagan. Reach him at gnorquist@atr.org.