by Terri Jo Neff | Apr 23, 2022 | News
By Terri Jo Neff |
The Arizona Supreme Court ruled Thursday that implementation of the state’s new single or “flat” income tax rate will move forward without a voter referendum in November. But one Phoenix area media personality seemed to suggest that the justices were in on the fix.
Longtime ABC15 anchor Steve Irvin took to Twitter within hours of the justices denying the attempt by Invest In Arizona, a political committee sponsored by Arizona Education Association, to put last year’s income tax reform provisions of Senate Bill 1828 up for a vote by the people. Two provisions of SB1828 replace Arizona’s current four income tax rates (between 2.59 to 4.5 percent) with a singular 2.5 percent rate effective January 2025.
The Court’s decision cited the fact the Arizona Constitution bars a voter referendum on legislative revenue acts involving “the support and maintenance” of the state government. As a result, the lower one-rate-for-all will become the law in 34 months.
Yet despite the $1.9 billion tax cut expected from the reduced tax rate, Irvin used Twitter to question the qualifications of the supreme court’s justices and went on to disparage them for ruling against Invest In Arizona and Arizona Education Association based on the same wording that has been in the Arizona Constitution the last 110 years.
Irvin was recognized in February by the Arizona Education Association for his coverage of education issues. He contends the income tax reform opposed by the group would have also been rejected by voters in November, even though there is no evidence that Arizona voters under pressures from inflation and other economic challenges would have agreed to continue paying more income taxes than needed to sufficiently cover appropriations.
Irvin’s tweets also ignored the fact all Arizona income taxpayers will see their tax rate decrease as a result of SB1828. Instead, he focused on the fact “rich people” will benefit from the rate change.
For the last few years, Arizona has experienced large budget surpluses (currently in the billions of dollars). State budget officials have confirmed that an across the board 2.5 percent income tax rate will be enough to fund state operations while leaving more money in the pockets of taxpayers.
READ MORE ABOUT STEVE IRVIN
by Terri Jo Neff | Apr 21, 2022 | News
By Terri Jo Neff |
In a major victory for millions of Arizonans, the Arizona Free Enterprise Club has prevailed at the Arizona Supreme Court in its attempt to protect a forecasted $1.9 billion tax cut through changes signed into law last year to change Arizona from a four rate income tax structure to a single rate.
On Thursday, the justices ruled in favor of a lawsuit filed the AFEC and several of its members who sought to ensure two provisions of Senate Bill 1828 related to the new 2.5 percent flat rate income structure goes into effect in January 2025. SB1828 was the omnibus appropriations bill signed into law by Gov. Doug Ducey in June 2021.
The AFEC lawsuit was in response to an effort by the Arizona Education Association sponsored Invest In Arizona to have voters overturn those two provisions in November.
But key to the AFEC’s legal arguments is the Arizona Constitution, which prohibits voter referendums of legislative actions undertaken for “the support and maintenance of the departments of state government and state institutions.” Oral arguments were held at the Arizona Supreme Court on Tuesday, during which attorneys Kory Langhofer and Thomas Basile presented AFEC’s position.
On Thursday morning, Mussi took part in an interview with KFYI’s James T. Harris about the efforts to protect the forthcoming tax cuts due to changing to a 2.5 percent flat rate. Mussi told Harris that Tuesday’s arguments at the Arizona Supreme Court “went well” and that he was optimistic “the justices generally understood what our argument was.”
Mussi did not realize how prescient his observation was, as just a few hours later the justices released their decision siding with AFEC and rejecting the referendum attempt.
The decision under the signature of Chief Justice Robert Brutinel enjoined the Invest In Arizona referendum effort from appearing on the 2022 General Election Ballot. In addition, the decision denied Invest In Arizona’s request for attorneys’ fees.
After the Court’s decision was announced, Mussi called it “a big win for taxpayers” across the state.
“The legislature passed historic tax cuts last year that benefit all Arizona taxpayers,” he added. “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.”
A detailed opinion explaining the legal conclusions made by the justices to form Thursday’s decision will be released in the next few weeks.
Hear Scot Mussi, President of the Arizona Free Enterprise Club, discuss the flat tax argument at the Arizona Supreme Court
