Push a sympathetic message. Drum up a bunch of misguided support. And then aim for a ridiculous tax increase. That was the strategy from Red4ED after it launched a little over four years ago.
In that spring of 2018, the color red was popping up all over the place—from Facebook profile pictures to protests at the state Capitol. And it was supposedly all about increasing teacher salaries and funding for K-12 education. It was a movement that had great momentum, a sycophant media, and a political class that was terrified to stand up to them. Yet they figured out how to, in four short years, go from a political juggernaut to one of the largest and most expensive failures in Arizona political history.
Of course, defeating this multiyear assault on Arizona by Invest in Ed was a huge win for taxpayers, job creators, and the future prosperity of our state. And it would not have been possible without a combination of political miscalculations and blunders by the Red4ED decision makers and a consistent, sustained opposition from key organizations and elected officials willing to stand up to the bullies behind the movement…
The last thing the people of Arizona need right now is a sales tax increase. But leave it to state lawmakers to try to push one through by proposing a referral to put a tax hike on the ballot to fund fire districts.
The bill is SCR1049. And if it makes it onto the ballot—and gets approved by voters—it would create a 20-year statewide 0.1% sales tax to fund Arizona’s 144 fire districts. It would also distribute the funds proportionally to the fire district’s equalized property valuation, but not to exceed 3% to any one fire district.
To the average voter, this may not sound like a big deal. After all, firefighters provide an important service that keep people and their property safe.
If Tax Day were held in early November instead of April 15th, I doubt Republicans would lose a close election again.
The financial squeeze of the Internal Revenue Service’s (IRS) filing deadline always feels personal. But it especially hurts this year. On top of President Joe Biden’s proposal to hike taxes on everything from capital gains to married couples, families across the country are suffering from another hidden tax: historic inflation.
The nationwide Consumer Price Index (CPI) increased by 7.9 percent as of last month. In Arizona, where the average price of gas now exceeds $4.60 per gallon, the Phoenix area is suffering from a CPI increase closer to 11 percent. Wherever you look, workers’ paychecks just aren’t going as far as they used to.
It’s wrong.
Florida and Texas have it right. People deserve to keep the money they earn. That’s why, if I’m elected as Arizona’s next governor, I plan to eliminate our state’s income tax once and for all.
Republicans need to stay on offense. Democrats in the Grand Canyon State dream of turning us into California. They have been aggressive in their efforts to do so, from pushing a 78 percent hike on small businesses at the state level to ramping up tax and fee increases at the local level.
Conservatives cannot allow ourselves to be pacified by simply stopping these bad ideas. We should feel equally comfortable moving in the opposite direction. And so far, thanks to smart policymaking by Governor Doug Ducey and our state legislators, we have been successful in doing so.
Over the past few years, Arizona has indexed the state income tax rates to inflation; conformed the state income tax to the Internal Revenue Code after passage of the Tax Cuts and Jobs Act; exempted military retirement from the state income tax; and passed into law a 2.5 percent flat tax representing the single largest tax cut in our state’s 110-year history.
Along the way, Democrats repeatedly warned that further reductions in the income tax would plunge us into turmoil and bankrupt government services. In reality, our state budget is in better shape than ever, with $5.27 billion in projected surplus revenue this year and plenty of room to return money to taxpayers.
Our economy is booming, too. We experienced the third-fastest economic recovery in the United States coming out of the pandemic, and we are expected to add more than 720,000 jobs over the next ten years.
These are the fruits of freedom. It is well past time to go further.
By eliminating the state income tax, we will create a business environment so welcoming to new investment that we’ll be beating businesses and entrepreneurs off with a stick. These job creators won’t pay any income tax. But they will pay property taxes, sales taxes, and more—and our tax revenues, along with our economy, will continue to grow hand-in-hand.
The bottom line is that hardworking families deserve to keep the money they earn, especially in inflationary times like these when the American Dream feels so far out of reach.
Zeroing out this tax—and ringing in Arizona’s final Tax Day—is not just the smart thing to do. It’s the right thing to do. I am the only candidate for governor who has endorsed it. And, as our next governor, it’s exactly what we will do.
Matt Salmon, a former U.S. representative and co-founder of the Freedom Caucus, is a Republican candidate for governor of Arizona.
“Punish the rich” tax proposals never seem to go out of style—at least for the Democrats. In the 2020 Democratic presidential primaries, it was all the rage for Senators Elizabeth Warren and Bernie Sanders. But after they both failed in their White House bids, they decided to double down on their wealth tax with an ill-conceived proposal on Capitol Hill in early 2021.
So far nothing has come of that. But enter President Biden.
At the end of March, Biden unveiled his Billionaire Minimum Income Tax proposal, and it’s every bit the disaster that you would imagine it to be.
Three consumer taxes should be immediately suspended to help Arizonans deal with post-pandemic inflation, and two of those taxes should be abolished altogether, State Sen. Warren Petersen argues.
On Tuesday, Petersen (R-LD12) called for a temporary halt to Arizona’s 19 cents per gallon gasoline tax. He also wants to see the food tax and the residential rental tax not only suspended, but also eventually abolished.
Petersen doubled down on his proposal Wednesday, telling KFYI’s James T. Harris there is “no reason” his proposal cannot be implemented in light of Arizona’s more than $1 billion budget surplus. Especially with a Republican-controlled Legislature and a Republican governor.
“People are absolutely reeling from inflation right now but we have state and local governments that have more cash than they’ve ever had before,” Petersen said, adding that his proposal would bring “immediate relief to some of the people that need it the most.”
Suspending the gas tax until the end of 2022 would help Arizonans at the pump, Peterson explained. He added that the move could bring even further relief for consumers due to high gas prices being integrated into the cost of everything else people buy.
The state’s huge budget surplus is more than enough to supplant the $300-$350 million in gas tax revenues needed to fund transportation projects across the state, Petersen said.
While a gas tax holiday would be temporary, Petersen is calling on his fellow lawmakers to support a permanent end to the food tax in Arizona.
“That just hurts the poor more than anybody, and only some cities charge it,” Petersen told Harris.
As to his third suggestion of the abolishment of residential rental taxes, Petersen questioned why a special consumer tax is charged of those living in a rental unit.
“Nobody should charge this,” he argued. “People don’t pay a tax every single time they pay their mortgage, but yet tenants every single time they pay their rent they pay a tax on their rent.”
Petersen believes the time is right for Gov. Doug Ducey to call a special session so that lawmakers can provide immediate relief through the huge budget surplus.
