by AZ Free Enterprise Club | Dec 5, 2025 | Opinion
By the Arizona Free Enterprise Club |
Despite the noble work of Republican lawmakers over the past five years to reduce the state’s burden on taxpayers (lowering and flattening the income tax, eliminating tax on renters, and addressing taxes on food,) cities and towns are constantly undermining this progress through rampant tax, fee, and utility rate increases.
Arizona’s affordability is being eroded through the insatiable tax-hungry decisions of city and town councils and their year-over-year spending sprees. If taxpayers have not noticed already, surely, they are feeling the pinch as these tax and fee hikes continue to stack one on top another. Red or blue, no city is immune, most likely your costs are going up…
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by Ethan Faverino | Nov 28, 2025 | News
By Ethan Faverino |
In a major show of support for America’s military heroes, Congressman Abe Hamadeh (R-AZ-08), alongside Senator Pete Ricketts (R-NE), has introduced two companion bills—the Service Members Tax Relief Act and the Tax Cuts for Veterans Act of 2025.
These bills would fully exempt all active-duty and reserve military income, as well as all service-related retirement payments and VA benefits, from federal income taxes.
The Service Member Tax Relief Act eliminates federal income tax on all pay received by active-duty and reserve members across the eight Federal Uniformed Services—including the Army, Marine Corps, Navy, Air Force, Space Force, Coast Guard, NOAA, and Public Health Service Commissioned Corps—as well as their Reserve and National Guard components when on federal orders. This includes base pay, enlistment and retention bonuses, education incentives, and all special and incentive pay.
The companion bill, Tax Cuts for Veterans Act of 2025, amends Section 122 of the Internal Revenue Code to permanently exclude all military retirement pay, retainer pay (Titles 10 and 14), and VA compensation, disability, and survivor benefits (Titles 37 and 38) from federal taxation.
“These bills are in keeping with my commitment to America First principles and advances President Trump’s Peace Through Strength agenda by alleviating the burdens on our service members in some small measure,” said Congressman Hamadeh, a former Army Reserve intelligence officer. “Our service members face high operational demands and cost-of-living pressures that outpace pay tables. So, anything we can cost-effectively do to ease those pressures should be done.”
Senator Pete Ricketts added, “Our servicemembers and veterans sacrifice for the country. We owe them more than we can ever repay. That’s why I’m working to ensure these brave women and men keep all the benefits they earn during military service. We also need to make sure that service members are set up for success when they transition back to civilian life. These bills strengthen our support for Nebraska servicemembers, veterans, and their families.”
Congressman Hamadeh has quickly emerged as a leading voice for America’s veterans and active-duty troops. In September, the House unanimously passed two of his bipartisan bills: the Edith Nourse Rogers STEM Scholarship Opportunity Act and the Health Professional Scholarship Program Improvement Act of 2025.
Congressman Hamadeh and Ricketts’ new bills are now pending in their respective chambers, already earning strong support from veteran advocacy organizations around the country.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Aug 3, 2025 | Opinion
By the Arizona Free Enterprise Club |
This year, the tax cuts from the Trump Tax Cuts and Jobs Act of 2017 were set to expire. Failing to extend the cuts would have resulted in a 22% tax hike for the average taxpayer. For Arizonans, it would have meant an average tax increase of $2,824. And there would have been an even larger tax increase for Arizona small businesses. Thankfully, earlier this summer Congress finally passed Trump’s One Big Beautiful Bill (OBBB), not only extending the personal income tax cuts from 2017 but making them permanent.
The OBBB also included several new tax provisions as well, such as no tax on tips and overtime, an increase in the standard deduction, full expensing and special depreciation for business, just to name a few. This assortment of changes to federal tax law now leaves states like Arizona with a big decision to make: provide partial conformity tax relief, full tax relief, or do nothing and provide no conformity tax relief at all.
This should be an easy choice, as choosing the non-conformity option would leave Arizona taxpayers with one big ugly tax bill to pay.
How big of a tax bill?
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by Matthew Holloway | Apr 1, 2025 | Economy, News
By Matthew Holloway |
Arizona State Senator JD Mesnard (R-LD13) is looking to reduce the size of government and the state income tax burden on Arizonans with dual bills: SB1318 and SCR1014. Both bills, which are moving through the House after passing the Senate in February, would require the Arizona Department of Revenue (ADOR) to reduce the individual income tax rate by 50% of the structural surplus for each Taxable Year (TY). If SB1318 passes the legisalture and is vetoed by Democrat Governor Katie Hobbs, SCR104 would put the issue on the Arizona ballot.
Both bills would require the Joint Legislative Budget Committee (JLBC) to determine the surplus for each Fiscal Year (FY), which would then be used to pro-actively reduce the income tax rate by 50% of the surplus amount, passing the tax savings onto the taxpayer more immediately than the issuance of a tax dividend.
Mesnard has a history of pursuing tax cuts. He was one of the lawmakers responsible for the historic 2021 tax reform that brought a flat income tax rate of 2.5% to individual taxpayers in Arizona. He also authored SB1783 the same year which lowered taxes on small businesses.
As reported by the AZ Capitol Times, Democrat Gov. Katie Hobbs expressed her opposition to SB1318, however should she veto it, the legislature would send SCR1014 to the Secretary of State, who would submit this proposition to the voters at the next election. Comparing the bill to the 1992 ‘TABOR’ or the Taxpayers Bill of Rights instituted by Colorado, Hobbs said, “I’m not interested in tying our hands like that. No. Not like TABOR. No. That’s not tax relief. That is tying the hands of future administrations.”
During hearings in February, Mesnard explained, “This is a proposal to essentially strike a balance. When you have a surplus, let’s split it between giving money to taxpayers and the other half allocating towards whatever you want.”
Democrat Sen. Brian Fernandez described the bill as an effort to “handcuff us so we can’t make decisions during a budget (negotiation).”
Mesnard responded, “So, ‘handcuff’; is an interesting choice of words. We can put parameters on ourselves. The voters put parameters on increasing taxes back in the 90s and also, more recently, when they’re on the ballot.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 27, 2025 | Economy, News
By Matthew Holloway |
A bill to exempt retirement savings from the state income tax is being considered by the Arizona House of Representatives.
SB 1371, sponsored by Sen. JD Mesnard (LD-13), would exempt all retirement investment savings, including 401Ks, IRAs, Roth IRAs, and pensions from state income tax for distributions made after an individual is 59 and a half years old.
As explained by the Arizona Senate Republicans in a post to X, the bill “works to reduce financial burdens on Arizonans who are over the age of 59.5 by exempting retirement income from taxation.”
The bill passed the Arizona Senate on March 6th along party lines.
In a press release from the Arizona Senate Republicans, Senator Mesnard stated, “Arizonans deserve to keep more of what they earn so they can plan for retirement at an appropriate age. This bill allows retirees to enjoy their responsible savings while securing a comfortable and stable life in their golden years, free from unnecessary financial burdens.”
He continued, “In a world where the cost of living continues to rise, we need to prioritize the needs of our citizens, making sure they have what they need to succeed. I remain committed to fostering a pro-growth, taxpayer-friendly environment for all Arizonans and look forward to seeing this legislation advance to the governor.”
The bill had its second reading in the Arizona House of Representatives on March 17th and is pending reports from the Rules and Appropriations committees.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
