by AZ Free Enterprise Club | Oct 17, 2022 | Opinion
By the Arizona Free Enterprise Club |
In just a few short months, Arizona will officially have the lowest flat income tax rate in the country. Governor Ducey announced last week that the Department of Revenue will be implementing the final stage of individual income tax rate and bracket reductions to a single 2.5% flat rate in 2023, a year sooner than originally planned. This is great news for Arizona taxpayers and job creators as well as the overall economic outlook of the state for years to come.
Given what is coming out of Washington, D.C. these days, this news couldn’t have come at a better time…
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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 AZ Free Enterprise Club | Nov 2, 2021 | Opinion
By the Arizona Free Enterprise Club |
Invest in Arizona wants you to believe that they ran a grassroots campaign. But that notion is absurd. And you don’t need to look very far to find out.
Recently, the political committee filed its campaign finance report. And lo and behold, what does it show? That the National Education Association (NEA) and Stand for Children, two out-of-state special interest groups, purchased the referendum against historic tax cuts that Republicans delivered earlier this year.
Just look at the numbers. In Quarter 3, Invest in Arizona received just over $16,000 from individual donors. Now, compare that to the nearly $2.4 million it received from the NEA and the more than $2.3 million it received in cash, goods, and services from Stand for Children.
That’s more than $4.5 million—basically their entire budget—with the overwhelming majority spent on gathering signatures.
So much for “grassroots,” eh?
Of course, Stand for Children is trying to claim that its money came from its Phoenix office. But these groups can’t be trusted…
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by AZ Free Enterprise Club | Aug 5, 2021 | Opinion
By the Free Enterprise Club |
Who doesn’t want more money in their pocket? After a brutal year that featured COVID lockdowns, small businesses and families trying to make ends meet could certainly use some.
And Arizona Republicans delivered.
At the end of June, the state legislature passed a $1.8 billion tax cut, the single largest tax cut in Arizona history. And Governor Ducey didn’t waste any time before signing the budget, which shouldn’t come as a big surprise. As Senator Mesnard explained while voting in favor of the budget:
At the end of the day, when this passes, every single taxpayer in Arizona will get a cut. Every single one.
It was certainly a day worth celebrating. But not everyone joined the party.
Apparently, Invest in Arizona, a political committee sponsored by Arizona Education Association and Stand for Children, isn’t happy with the idea of every Arizona taxpayer receiving a cut. In an effort to block the historic tax cuts, the group filed three referendums that include components from three bills passed this legislative session:
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by AZ Free Enterprise Club | Jul 7, 2021 | Opinion
By the Free Enterprise Club |
After raking in cash from taxpayers amounting to a staggering $4 billion surplus, Governor Ducey and Republican legislators have delivered big with a historic tax cut this year. At full implementation, the cuts enshrined in SB1827, SB1828, and SB1783 will total $1.8 billion, and this couldn’t have come at a better time.
While Arizona families and small businesses were struggling during covid shutdowns and trying to make ends meet, the tax collector was still busy collecting. And as all Arizonans were already being overtaxed, on the narrowest margin, Proposition 208 was passed threatening a 77% tax hike on many Arizonans and small businesses. The tax cuts in this year’s budget completely neutralize that threat.
The tax cut package will result in a tax cut for all Arizona taxpayers. At full implementation, the current four rates of 2.59%, 3.34%, 4.17%, and 4.5% (with a fifth Prop 208 rate of 8%) will be collapsed into one single rate of 2.5%.
But since Proposition 208 is voter protected, income above $250,000 ($500,000 for married filing jointly) would still be hit with the 3.5% “surcharge,” resulting in a top rate of 6%, leaving Arizona still uncompetitive. The tax cut package takes care of this, too, by capping the top rate any taxpayer will shoulder at 4.5%, or the current top marginal rate.
Finally, holding the Red4Ed Prop 208 proponents to the promise that their tax hike “legally” could not affect small businesses, SB1783 will create an optional alternative small business tax which will have a rate beginning at 3.5% this year, ratcheting down to match the new single individual income rate of 2.5%. This means that small businesses can bifurcate their business income from their personal income, filing it under the alternative small business tax and paying a rate of 2.5% instead of the capped 4.5% rate. To reiterate, this is small business income that by Prop 208 advocates own words was never supposed to be subject to the surcharge. SB1783 codifies that intent…
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