NEWS
AHWATUKEE FOOTHILLS NEWS | JULY 7, 2021
Grassroots group takes on GOP tax break for rich HOWARD FISCHER Capitol Media Services
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rizonans may get the last word on a nearly $2 billion tax cut plan that mainly benefits the wealthy. Organizers of what had been the Invest in Ed initiative that voters approved in November have crafted three separate proposals to take to the ballot in 2022. They want the public to decide whether to ratify the decision by state lawmakers to: create a 2.5 percent flat tax rate, scrapping the current progressive rates; cap anyone’s taxes at no more than 4.5 percent including the 3.5 percent surcharge in Proposition 208; and create a new tax category for small business owners to allow them to escape having to pay any of that surcharge. Backers need 118,823 valid signatures on petitions by Sept. 28 to force a vote. Given the number of signatures that are normally disqualified, a more realistic
goal would be closer to 150,000. But the groups involved in the effort have a proven track record of not just getting proposals on the ballot but getting voters to go along with them. Potentially more significant, if they reach that goal, it immediately prevents any of the challenged measures from taking effect until the 2022 election. At that point voters would get to say whether they agree with what the legislature did or not. A spokesman for Gov. Doug Ducey, who championed the tax-cut plans, said he would have no comment unless and until the backers got the signatures. Instead, C.J. Karamargin said the justcompleted legislative session was “one of the most successful sessions in recent memory.’’ And he said that includes the three items that foes hope to put on the 2022 ballot. At the heart of the fight are two questions: whether the state should forego
close to $2 billion in revenues – the total that would be collected without the three measures at issue – and who should benefit if there are tax cuts. David Lujan, one of the organizers of Invest in Education – now being renamed Invest in Arizona – said he believes there is strong public opposition to what the Republican-controlled legislature enacted. “This is a tax give-away to the rich and it’s giving away Arizona’s future in the form of tax cuts to the rich,’’ he said. A study by legislative budget staffers of the flat-tax proposal and the 4.5 percent cap shows that 53 percent of the savings would go to those with taxable income of more than $1 million a year. By contrast, those in the $50,000 or less range would see just 1 percent of the savings. More specifically, the study shows the average tax annual tax cut for someone in the $25,000 to $30,000 range would be $5. But someone earning more than $500,000 but less than $1 million would
Ducey signs new budget, tax break HOWARD FISCHER Capitol Media Services
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ov. Doug Ducey last week signed legislation putting in place an immediate $1.3 billion tax cut, set to rise to $1.9 billion, that is designed largely to benefit the wealthiest. Ducey inked his approval of the $12.8 billion spending plan just a day before the new fiscal year began Thursday. It also came as state lawmakers approved the last elements of the budget package for the new fiscal year after jettisoning provisions to vastly expand the number of children who could get vouchers of public dollars to attend private and parochial schools. But it still will make it easier for some students to leave public schools and get these vouchers. There also is a ban on what some have dubbed “critical race theory’’ in schools. It specifically prohibits teaching students that one race, ethnic group or sex is inherently morally or intellectually superior to another; that any individual by virtue or race, ethnicity or sex is inherently racist, sexist or oppressive; that any in-
Gov. Doug Ducey signed a budget for the new fiscal year that includes a ban on school district mask mandates. (AFN file photo) dividual bears responsibility for actions committed by others of the same race, ethnicity or sex; and that any individual should feel discomfort, guilt, anguish or psychological distress because of their race, ethnicity or sex. However, gone is a proposal added in
the House by Rep. Judy Burges, R-Skull Valley, that would have required schools to have a comparative discussion of communism and totalitarianism that conflict with the founding principles of the United States. It also would have mandated new civ-
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see $10,035 in annual relief from what they would otherwise have to pay. That rises to nearly $44,800 for those in the $1 million to $5 million range, and an average tax break of close to $350,000 for those in the $5 million-plus tax category. “Arizona has, we think, a lot of more important priorities like funding our public schools, funding health care for kids, infrastructure, that we should be focusing on before giving huge tax cuts to the rich,’’ Lujan said. The legislative changes are the result of two separate forces. Many Republicans have long argued for a flat tax rate. Separately, Ducey and GOP lawmakers said if Proposition 208 is allowed to take effect as crafted it would dampen economic recovery. That’s because the measure imposes a 3.5 percent surcharge on earnings of more
see TAX page 20
ics instruction “to prepare students to be civically responsible and knowledgeable adults.’’ In a prepared statement about his decision to sign the budget, the governor cited what he said are various investments, ranging from $100 million for wildfire prevention and mitigation efforts and $55 million for border security to $13 million for body cameras for state troopers. The governor made no mention of legislation that allows the Department of Public Safety to deny public access to the footage. He specifically cited the 2.5 percent flat tax to be phased in over three years, scrapping the tiered system that now has tax rates up to 4.5 percent for earnings by married couples in excess of $318,000. And the plan also helps those with earnings of more than $500,000 avoid paying all or part of the 3.5 percent surcharge voters approved in November to help supplement education funding. An analysis of the plan shows that about 53 percent of the tax relief will go to the 9,645 Arizonans with a taxable income of
see BUDGET page 20