This year, Arizona has a big opportunity to make meaningful, comprehensive, tax reform that will put our economy into overdrive and help our Hispanic community thrive.
Before the response to the Coronavirus closed businesses and recreational activities in much of the country and sent many state budgets into a tailspin, Arizona’s state budget showed a $1 billion surplus. Even a year later, revenue collections remained strong and the projected ending balance for Fiscal Year 2022 could be more than a $2 billion surplus.
But last fall, Arizona passed Proposition 208, nearly doubling the income tax for those in the highest tax bracket including many small business owners. The so-called 3.5 percent Prop. 208 “surcharge” will discourage small business owners and wealthy individuals from moving into the state. If Arizona doesn’t make positive reforms in the tax code as well as state budget expenditures, Arizona will be much less competitive to other high-growth states.
According to research published by the CATO Institute, taxation does impact where businesses locate and where individuals move. The lowest taxed states saw the largest net in-migration.
Our Hispanic community will benefit if the income tax is eliminated or if the brackets are consolidated into one low flat rate. It is our hope that legislators will return the surplus revenues back to taxpayers with lower taxes and eliminate wasteful spending.
Please sign the letter to urge your lawmakers to support income tax relief so that we are able to keep more of our paychecks!