by Warren Petersen | Jan 30, 2026 | Opinion
By AZ Republican Lawmakers |
In the first week of the State Legislature’s session this year, Republicans delivered a major win on our longstanding promise to provide historic relief to millions of hard-working taxpayers in the form of a $1.1 billion tax cuts package. Our action follows years of escalating costs brought about by the failed policies of the Biden-Harris Administration, where Americans struggled to pay bills, put food on the table, and save for their children’s future. The plan would have aligned Arizona’s tax code with the federal reforms championed by President Donald J. Trump and congressional Republicans just this last year, targeting relief where it is needed most and reasserting the Grand Canyon State as one of the most affordable and competitive in the country.
Unfortunately, without much thought, Democrat Governor Katie Hobbs vetoed our package within hours of its passage through both chambers of the Arizona Legislature, denying real, practical relief to the taxpayers she took an oath to serve.
The governor’s veto was cruel and callous toward the people she claims to represent. It also came just weeks after she essentially claimed credit for the recently enacted federal tax cuts that were predominately due to Republicans’ foresight and execution. Her previous words rang hollow with one stroke of her pen, just as tax season is getting under way for Arizonans looking for real leadership from their state leaders.
Governor Hobbs’ veto was not so surprising; she has shot down a historic number of commonsense bills throughout her three-plus years in office. We had hoped, however, in the spirit of bipartisanship, doing the right thing, and putting taxpayers first, that the governor would sign this legislation. Unfortunately, the governor resorted to her partisan roots and adhered to the demands of the radical liberal extremists who control her every move in office.
The historic relief package sent to Governor Hobbs’ desk this month would have provided incredible results for Arizona families and job creators and again positioned our state as a national leader on this front. Our bill would have increased the child tax credit, created a new deduction for childcare expenses, and provided meaningful help for working families, seniors on fixed incomes, and job leaders across the state. Most importantly, the legislation would have given clarity to taxpayers looking to plan ahead and expecting consistency between their federal and state forms and returns.
All these efforts went for not, though, when Governor Hobbs immediately rejected this package.
The governor’s negative action on our bill shows yet again that there are inherent differences between our two parties on the all-important issue of taxes and spending. Republicans believe that Arizonans should keep more of what they earn, and that government should spend within its means—instead of inflating its budgets on the backs of hard-working citizens. Democrats, on the other hand, believe that they are entitled to more of your money to fund socialist projects and programs—like many of the ones in California, New York, and Illinois. There’s a reason why so many Americans are fleeing the aforementioned states (and others) and migrating to Arizona and other Republican-led bastions of freedom: it’s because our states are taking action to cut taxes for families and businesses alike.
In short, Republicans believe that government exists—and works—for the people who elect us at the ballot box. It’s your money, and it’s your government. We are the stewards of your hard-earned dollars, which means it is our job to ensure that government lives within its constitutional jurisdictions and sets up future generations of Americans for success and prosperity. These principles were at the heart of the Arizona tax relief package.
Despite this setback, Arizona legislative Republicans will not cease our efforts to lower taxes and keep our state affordable for all. Over the past two decades, we have authored and passed many pieces of legislation to cut taxes and reduce the cost of living, including a historic flat income tax, tax rebates, and relief for renters and small businesses—among many other cost-saving actions. We will not stand by and admit defeat when a Democrat governor places her special interest friends above hard-working taxpayers. Rather, we will redouble our efforts to put more money into the pockets of the proud men and women we humbly serve.
Contributors to this op-ed include: Senate President Warren Petersen, Senate Finance Committee Chairman J.D. Mesnard, Senate Majority Leader John Kavanagh, and Senate Appropriations Chairman David Farnsworth.
by Matthew Holloway | Jan 18, 2026 | News
By Matthew Holloway |
Gov. Katie Hobbs has vetoed Republican-backed tax conformity legislation approved Thursday by the Arizona Legislature.
The bill, SB 1106, would have provided $1.1 billion in tax relief over three years while maintaining a balanced state budget.
The legislation would have aligned Arizona’s tax code with recent federal changes and included provisions eliminating state income tax on tips and overtime pay, increasing the standard deduction, expanding the child tax credit, creating a deduction for childcare expenses, and providing additional tax relief for seniors.
Hobbs vetoed the bill without releasing a formal veto message as of the time of publication.
In response, House Speaker Steve Montenegro (R-LD29) issued a statement criticizing the governor’s decision and warning of potential impacts on taxpayers as the filing season approaches.
“Governor Hobbs’ veto of our tax relief act is a failure of leadership that will create unnecessary confusion and disruption for millions of Arizona taxpayers,” Montenegro said in a statement released Thursday.
Montenegro said House and Senate Republicans passed the legislation early to provide clarity and certainty for families, seniors, small businesses, employers, and tax preparers. He added that the bill conformed Arizona law to federal tax changes and removed provisions the governor had previously opposed.
“The Governor admitted swift action was needed. She asked for a bill to be sent quickly. We did exactly that,” Montenegro said. “What she did not do was offer a plan of her own. No bill. No alternative. No solution.”
Montenegro also listed several provisions included in the legislation that were rejected through the veto, including increases to the standard deduction, a childcare expense deduction, an expanded child tax credit, elimination of state taxes on tips and overtime, and additional tax relief for seniors.
Montenegro said the veto would lead to confusion for taxpayers, adding, “The chaos ahead is not accidental. It is the direct result of Governor Hobbs’ decision to veto a responsible tax conformity bill with no replacement plan.”
The veto also prompted reaction from other Republican lawmakers. State Rep. Nick Kupper (R-LD25) criticized the decision in a post on X. Kupper wrote, “Of course @GovernorHobbs vetoed the tax cuts we sent her because she doesn’t give a crap about working families. If she can’t give more handouts to non-working people then she won’t like whatever we send her.”
Arizona Congressman and 2026 gubernatorial candidate Andy Biggs, said, “Katie Hobbs vetoed a $1.1 BILLION tax cut for Arizona seniors, families, and workers. She is a weak and ineffective governor keeping Arizona from its full potential. She has no vision for the state. She has no ability to lead.”
Republicans do not hold the votes necessary to override the governor’s veto, leaving tax conformity unresolved unless lawmakers and the governor reach an agreement later in the legislative session.
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 | Dec 31, 2025 | Economy, News
By Matthew Holloway |
U.S. Rep. Andy Biggs (R-AZ-05) recently told Newsmax that Americans should begin feeling the economic impact of President Donald Trump’s signature tax and budget law within the next 90 days as key provisions are implemented.
Biggs made the remarks during an interview on Monday, December 22, referencing what supporters officially call the One Big Beautiful Bill Act (H.R.1), a broad tax and spending statute signed into law earlier this year.
Biggs said Americans will start seeing the tax changes “pretty quickly,” adding that the core provisions would “start spinning up in the next 90 days.”
He told the outlet that the rollout of the new tax policy would stimulate economic activity. “So you’re going to see some new things with regard to Social Security, overtime, tax on tips, and that’s going to actually cause some economic stimulus,” Biggs said.
The One Big Beautiful Bill Act was enacted on July 4, 2025, following passage in both the U.S. House and Senate. It includes a wide range of tax code changes, spending provisions, and policy adjustments central to the Trump administration’s domestic agenda.
The law permanently extends several individual and business income tax cuts originally enacted in the Tax Cuts and Jobs Act of 2017 and includes a number of deductions and tax incentives. It also makes significant changes to Medicaid eligibility requirements and the Supplemental Nutrition Assistance Program (SNAP), raises the debt ceiling, and allocates funding across defense, border enforcement, and other federal priorities.
Biggs was among Arizona’s congressional Republicans who supported the bill during its floor votes. All six Republican members of Arizona’s U.S. House delegation voted in favor of the legislation when it returned to the chamber for final approval in July.
The bill passed the House on a 218-214 vote after earlier Senate approval. It then went to President Trump, who signed it into law later the same day.
Biggs’s comments come as Republican lawmakers and supporters highlight the expected timelines for implementing tax cuts and credits included in the legislation. Trump allies have repeatedly emphasized that many provisions are designed to reduce tax burdens for individuals and businesses once they take effect in 2026.
The law’s changes to federal tax rates and deductions, including those affecting child tax credits and specific income brackets, could impact Arizona households in 2026 as those provisions begin phasing in. It also includes changes to federal funding streams that intersect with state budgets, such as SNAP and Medicaid, both of which have significant participation among Arizona residents.
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 | Nov 24, 2025 | News
By Matthew Holloway |
Congressman Andy Biggs has called out Arizona Gov. Katie Hobbs for “blatant hypocrisy” after she publicly pitched the benefits of the federal Working Families Tax Cut, a policy she previously denounced as a “betrayal.”
In a statement released Thursday, Biggs said Hobbs is “shamelessly” attempting to attach herself to a Republican-driven tax package that she vocally opposed earlier this year.
“After calling the Working Families Tax Cut a ‘betrayal,’ Katie Hobbs now shamelessly wants to take credit for the tax cuts passed by President Trump and Congressional Republicans,” Biggs said. The congressman provided links to her July comments to Fox10 in which the Governor stated:
“This bill is a betrayal of working families, children, and seniors in Arizona who will lose their healthcare, their ability to put food on the table, and good-paying jobs, all to give tax cuts to the people who are already billionaires while ballooning our national debt by $3.4 trillion.”
Biggs argued that despite Hobbs’ prior opposition, Republicans “successfully delivered tax relief to working-class Arizonans and seniors who are being hurt by the rising energy costs of Hobbs’ progressive, green energy agenda.”
On X, Biggs highlighted Hobbs’ recent promotion of her own “Middle Class Tax Cuts Package,” which includes bigger deductions, tax relief for seniors, and exemptions on taxes for tips, overtime, and new car loan interest.
Hobbs, who recently launched her 2026 reelection bid, has highlighted the tax cut in campaign messaging and controversially billed her events as “Arizona First” rallies, as noted by Capitol Media. Biggs asserted that the move reflects political weakness within her own party.
“Even her fellow Democrats are calling her ‘weak’ because they know the truth just like Arizonans do: Katie Hobbs has failed our state, and now she’s trying to cover it up by taking credit for Republican victories,” he said citing an op-ed from AZ Mirror.
The Working Families Tax Cut, a component of the “One Big Beautiful Bill” championed by President Donald Trump, Biggs, and other House Republicans, expanded credits for lower- and middle-income households and included relief provisions for seniors. Hobbs criticized the measure during negotiations, calling it fiscally irresponsible and siding with Democrats who argued it favored Republican priorities.
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 Ethan Faverino | Jul 8, 2025 | Economy, News
By Ethan Faverino |
President Donald Trump’s One Big Beautiful Bill, supported by all Arizona’s Republican representatives, was signed on Friday, July 4th. The bill provides the largest tax relief in American history.
Among the bill’s most impactful provisions are no tax on tips, no tax on overtime, and no tax on Social Security benefits.
These policies are designed to put more money back into the pockets of the hard-working American people.
The “No Tax on Tips” provision offers a new deduction of up to $25,000 for workers in tipped industries. Whether tips are received in cash, by charge, or through tip-sharing arrangements, employees will keep more of their hard-earned income.
This measure is expected to save tipped workers nearly $2,000 annually, providing direct financial relief to millions of Americans in these critical industries.
The bill also eliminates taxes on overtime pay. This guarantees that workers who put in extra hours are rewarded greatly with bigger paychecks. This, as well, could also save Americans on average $2,000 a year.
According to a new study from the Council of Economic Advisers, 88% (48 million) of American seniors receiving Social Security will pay no taxes on their Social Security income.
For a single senior receiving the average retirement of $24,000 annually, deductions will exceed their taxable Social Security income. Similarly, married seniors with a combined Social Security income of $48,000 will also see their deductions surpass taxable income.
The One Big Beautiful Bill also delivers an average 15% tax cut for Americans earning between $15,000 and $80,000, significantly boosting take-home pay.
For a typical family with two children, this translates to an increase of up to $10,900 per year in after-tax income. The bill also boosts the standard tax deduction, raising it to $23,625 for married couples and $15,750 for singles, a benefit utilized by 91% of taxpayers.
According to the Council of Economic Advisers, the One Big Beautiful Bill will drive significant growth and fiscal stability. This includes:
- Real wages increasing by up to $7,200 per year
- Real Investment growing by as much as 10%
- Creation of protection of 7 million jobs
- Deficit reduction of up to $11.1 trillion, driven by $5.2 trillion from economic growth, $2.8 trillion from tariff revenue, $1.6 trillion from discretionary spending cuts, and $1.5 trillion from interest savings.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
