by Corinne Murdock | Oct 9, 2022 | News
By Corinne Murdock |
During her last year in the State Senate in 2018, Democratic gubernatorial candidate Katie Hobbs backed a bill to add 131 new tax auditors, managers, and staff to the Arizona Department of Revenue (ADOR) using $8.3 million in state funds. At the time, Hobbs was the State Senate’s minority leader.
Throughout her gubernatorial campaign, Hobbs said she would lighten the tax process burden for the working class if elected. Hobbs also pledged to cut income taxes for 800,000 families if elected governor.
Additionally, Hobbs promised that working-class Arizonans wouldn’t pay “a center higher” for her economic plan, nor would they face unnecessary tax burdens.
Hobbs’ proposed plan to increase ADOR was similar to the Biden administration’s recent accomplishment: expanding the IRS. In August, Congress voted to increase the size of the IRS by about 87,000 agents through the Inflation Reduction Act (IRA), a repackaged version of President Joe Biden’s Build Back Better (BBB) Act. Republicans decried the provision as a weaponization of the IRS that would cause disproportionate harm to the working class. Democrats dismissed those concerns, insisting that the IRS would only target the wealthy not paying their fair share of taxes, and that the IRA would mitigate inflation.
Last year, over 50 percent of all IRS audits targeted taxpayers making under $75,000 a year, which applies to about 171.6 million Americans (52 percent). About 25 percent of IRS audits applied to taxpayers making between $75,000 to $200,000, which applies to about 118.8 million Americans (36 percent).
In all, 75 percent of audits may apply to the 290.4 million Americans that comprise 88 percent of the population (about 330 million).
The bill that Hobbs cosponsored in 2018, SB1324, proposed the addition of two corporate income tax audit managers, 28 corporate income tax auditors, two transaction privilege tax managers, 28 transaction privilege tax auditors, two transaction privilege tax license compliance staff managers, 18 transaction privilege tax license compliance staff members, 40 tax collectors, and 11 support staff members.
The bill died quietly, having never received a vote in any committee. Its House companion, HB2137, experienced the same fate.
At the time, Governor Doug Ducey expressed a desire to expand ADOR — but by 25 tax collector positions that had been eliminated several years prior, about 80 percent less than what HB2137/SB1324 proposed. Ducey was looking for ways to make up about $83 million in lost audit revenue.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Terri Jo Neff | Oct 8, 2022 | News
By Terri Jo Neff |
Katie Hobbs has her reasons for refusing to debate Kari Lake face-to-face in the race for Arizona Governor. But by doing so Hobbs is limiting the opportunities for Arizonans to hear her explain her history of supporting higher taxes while a member of the state legislature.
Hobbs, a Democrat currently serving as Arizona Secretary of State, has spent the last few weeks touting her promise to not raise taxes if elected. In fact, she is even promising to reduce taxes for many Arizonans even though it is doubtful that Democrats will control the legislature.
So with Hobbs making herself scarce for public questioning, voters are left to scrutinize her legislative history. And what can be found there casts doubt on her tax cut mantra.
Hobbs served in the Arizona State Senate from 2013 to 2019 and was Senate Minority Leader during much of that time. She also served one term as a member of the Arizona House of Representatives prior to the Senate.
In January 2018, Hobbs co-sponsored Senate Bill 1316 along with progressive Democratic Senators Juan Mendez, Jamescita Peshlakai, and Martin Quezada to eliminate the light class motor vehicle classification from Arizona’s fuel tax statutes.
But more importantly, SB1316 proposed to double the state’s per gallon motor fuel tax from 18 cents to 36 cents. The bill, which would have been one of Arizona’s largest tax hikes in state history, was so unpopular it was never heard by a Senate committee.
SB1316 is not the only time in Hobbs’ legislative history that she supported tax increases. In 2017, she was a fervent proponent of a sales tax increase that would have cost taxpayers between $500 and $600 million a year.
Also in 2018, Hobbs voted to impose an additional annual tax due when registering a vehicle. The new tax, set at $32 per vehicle, was so unpopular it was repealed by the legislature.
And back in 2015, Hobbs opposed critical legislation which was introduced to protect Arizonans from the effect of inflation on personal income tax brackets. The bill was eventually signed into law by Gov. Doug Ducey.
Hobbs’ legislative history on the subject of taxes is one reason organizations such as the Arizona Free Enterprise Club are encouraging voters to look at facts, not campaign speeches when it comes to Hobbs’ promise of tax cuts.
“Anyone who has followed Hobbs’ political career knows that this is just another outrageous lie,” AFEC posted Wednesday. “During her time in the state legislature, Katie Hobbs regularly opposed tax cuts for families while making it a habit to support multiple tax hikes….Hobbs has spent her political career trying to squeeze every possible dollar from your bank account.”
by AZ Free Enterprise Club | Oct 7, 2022 | Opinion
By the Arizona Free Enterprise Club |
In between dodging questions about why she won’t debate Kari Lake and holding school choice funds hostage, Katie Hobbs has been making some curious campaign promises lately. And none have been more suspect than what she claims is her current position on tax hikes.
After dragging her feet on the issue, Hobbs finally made her stance known last month when she declared that she has no plans to raise taxes if elected governor. Then, like a good Democrat who promises everything under the sun, she took it one step further, claiming that she would cut taxes for 800,000 Arizona families.
But anyone who has followed Hobbs’ political career knows that this is just another outrageous lie. During her time in the state legislature, Katie Hobbs regularly opposed tax cuts for families while making it a habit to support multiple tax hikes.
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by Corinne Murdock | Sep 28, 2022 | Education, News
By Corinne Murdock |
On Wednesday, Secretary of State Katie Hobbs chose to stall on the invalidation of a ballot initiative attempting to kill school choice, despite it not having the required number of signatures.
School choice advocates gathered outside of the State Capitol on Wednesday to protest Hobbs’ inaction. Hobbs told frustrated parents that her office would wait out the entire 20-day period offered by state law to verify the Save Our Schools Arizona (SOSAZ) ballot initiative signatures.
Governor Doug Ducey spoke at the rally, telling Hobbs to expedite her signature verification. He also directed Arizona Department of Education (ADE) Superintendent Kathy Hoffman to take charge and free the universal school choice funds.
“Arizona is going to be a state that funds students, not systems,” said Ducey.
One Empowerment Scholarship Account (ESA) Program mother, Christine Accurso, pleaded with the media to question Hobbs’ choice. Accurso led “Decline to Sign,” the countermovement to SOSAZ’s ballot initiative.
“Help us parents of Arizona. Ask Katie Hobbs why they won’t release this,” said Accurso.
Accurso added that if a group of four moms was able to verify the signature number total in a matter of days, it shouldn’t take the secretary of state’s office nearly a month to do the same.
According to earlier reporting from this week, pro-ESA Program parents, organizations such as the American Federation for Children, and various reporters reviewed the SOSAZ signature sheets and found them far short of the claimed totals. However, Hobbs and her office took SOSAZ’s signature total claim at their word.
“Conservative Circus” radio host James Harris also spoke at the rally. He declared that Hobbs’ Republican gubernatorial opponent, Kari Lake, wouldn’t stand in the way of school choice funds for parents the way he said that Hobbs did this week.
“We don’t need more obstacles. We need liberty and we need freedom,” said Harris.
AZ Free News reached out to Hobbs’ office on Tuesday for clarification about whether their decision to accept SOSAZ’s word for their petition signature count without verification was protocol. They haven’t responded.
We also reached out to SOSAZ Director Beth Lewis; she didn’t respond to our questions, either.
Senate President Karen Fann (R-Prescott) sent a letter to Hobbs on Wednesday, informing the secretary of state that anything less than an immediate rejection of the SOSAZ ballot initiative would make Hobbs complicit in misreporting and interfering with the law.
“As our country enters into a recession, we know that every dollar is valuable to lives and livelihoods,” said Fann.
While awaiting response from Hobbs’ office, AZ Free News posed the same question to former Secretary of State Ken Bennett. Though he said he was shocked by Hobbs’ handling of the ballot initiative, he said that Hobbs’ actions weren’t in violation of any laws. Bennett explained that Hobbs’ handling of this recent initiative didn’t align with the precedent of her predecessors, including his administration.
“We just felt the integrity of the whole process was worth at least a verification of the number of sheets and the purported number of signatures on those sheets when they first turned them in when I was there,” said Bennett. “Each secretary can decide how they want to do it, but my administration felt that we at least owed the public the fact that we checked the signatures per sheet. At least we would add the total sheets and total signatures up, so we weren’t getting somebody a false receipt of what we had received from them.”
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by AZ Free Enterprise Club | Sep 28, 2022 | Opinion
By the Arizona Free Enterprise Club |
What’s the difference between 141,714 and 88,866? Take a few seconds to do the math, and feel free to use a calculator if you’d like.
If you answered 52,848, you’re correct! Congratulations and give yourself a pat on the back because your math skills are far superior to those of Save Our Schools (SOS) and the rest of Arizona’s teachers’ unions.
On Friday, SOS Executive Director Beth Lewis boldly proclaimed—with all the confidence in the world—that the wall of boxes she was standing in front of contained the signatures of 141,714 Arizona voters who supported a ballot initiative aimed at overturning universal Empowerment Scholarship Accounts (ESA) in Arizona. She was giddy. Her supporters cheered. SOS declared blocking universal school choice for all a “historic victory.” And corporate media jumped on the opportunity to push their narrative, accepting everything SOS said at face value.
But there was a problem. And that’s where simple math comes into play…
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