Two of the 11 bills that make up the Republican budget for Arizona — HB2899 and HB2900 — were defeated 30-30 in the Arizona House on Monday, June 7.
These bills include the disastrous Flat Tax proposal and the income tax cap at 4.5%. Together, they are an attack on the will of the voters because they reduce the impact of Prop 208 (Invest in Ed) on Arizona’s wealthiest residents. Arizona’s 1% (about 30,000 people) would have been the biggest beneficiaries of the Republican’s $1.5 billion in tax cuts in their budget. This state has over 7 million people. Why are the Republicans working for 30,000 people? These bills — and the other nine that make up their budget deal — deserve to die.
I am so thankful for Rep. David Cook who voted “no” on both bills along with all 29 Democrats.￼ The flat tax would have really hurt cities and towns across Arizona. They would have lost more than $200 million in shared revenue if the Flat Tax had passed. It would have forced them to cut services or raise sales taxes dramatically.￼ Rep. Steve Kaiser stood up and gave a short but impassioned speech about how glorious it would be to live in a state like Texas or Nevada with no income tax. He failed to add how high the sales taxes and miscellaneous fees are in states that have low personal and/or corporate income taxes. (Somebody pays. Roads and schools are not free.)
Continue reading Two #AZGOP Budget Bills Defeated in #AZHouse (video)
The House Appropriations Committee was debating the budget as I drove to the Capitol on Tuesday morning. The Republicans started the budget process by introducing the 11 bills that make up the coming fiscal year’s budget on Monday, May 24. Except for leaked documents and rumors, this was the first time the Democrats and the public were able to see the whole proposal (available here).
Rumors have been swirling around the Capitol for weeks about the massive tax cut — biggest ever in Arizona history — and the flat tax proposal that the Republicans were planning. The rumor mill also said they didn’t have the votes to pass it. Republicans need ALL of their members to get in line on the budget, since the flat tax and other shortcomings make their budget a non-starter with Democrats, who make up 48% of the Arizona Legislature.
Continue reading #AZGOP Budget Has Flat Tax & Tax Breaks But Lacks Votes (video)
On the afternoon of May 27, 2021, the Arizona Senate adjourned until June 10 because the Republicans don’t have the votes to pass their budget, which was created behind closed doors by a handful of their members.
ORIGINAL POST from earlier that day:
As I reported yesterday, some Arizona Republicans are feeling the heat from constituents on their horrible budget, the $1.5 bullion in tax cuts (primarily benefiting the wealthy), and the flat tax. What do they expect when an extremist budget crafted behind closed doors by handful of Republicans is revealed to the media and the voters? Of course, people will be outraged￼. Republicans have their tax cut blinders on. They are ignoring so many needs that could be funded with the money we now have.
On May 26, the House adjourned until June 10 because the Republicans did not have the votes to cram the budget through both houses in the middle of the night (standard operating procedure for Arizona Republicans). This is historic! Stopping the budget process because Republicans are in disarray has not happened in years.
Continue reading #AZHouse Adjourns with No Budget. Et Tu, #AZSenate? (video)
Besides the flat tax, practically every tax giveaway that’s been defeated in the last five years is stuck into the Republican budget.
What’s that? You didn’t want more tax giveaways?
You wanted the state to Invest in Education and to pay teacher’s a fair wage? Forget about it. Arizona Republicans pride themselves in syphoning off public education funds and giving them to for-profit diploma mills, private schools and religious schools.
You thought it would be a good idea to restore the full $40 million in funding to the Housing Trust Fund to tackle the housing affordability and eviction problems in Arizona? Nope. Republicans are doing tax breaks for developers instead.
What about tackling Adverse Childhood Experiences, like food, housing and financial insecurity? No, Republicans like being worst in the nation for child wellbeing.
Continue reading #AZGOP Budget: $0 for Housing Trust Fund, Teacher Pay or Maternal & Child Health (video)
Governor Doug Ducey and Arizona Republicans are promoting a 2.5% flat tax on personal income and have included it in the budget package, currently under negotiation in the Arizona Legislature. They are also proposing that income over $250,000 for individuals and $500,000 for couples be taxed at 1%. Usually excess profits are taxed at a higher rate, not at a lower rate, but, hey, this is Arizona.
You’ll remember that in 2020 the voters approved Prop 208 Invest in Education. With this citizens initiative, the voters created a 3.5% fee on personal income over $250,000 for individuals and $500,000 for couples. The Republican tax plan will eliminate the Prop 208 “burden” on Arizona’s 1%. Who will pay the difference? You will.
Rather than requiring Arizona’s richest 30,000 residents pay their fair share of public education costs, the state is giving them a tax break, and the state is going to pay the bill for them. In the news, Rep. David Cook called the Flat Tax “unfair” because everyone will pay taxes, but the state will “backfill” the cost and help out “high-earners” (ie, Arizona’s richest residents).
Other states have tried flat taxes and they have broken the budget. It will not only hurt the states budget, but it will hurt the cities and towns also. The Republican budget is a nonstarter. Except for the 30,000 millionaires and billionaires who will benefit from Republican largesse, it is bad for Arizona.
The Flat Tax — along with all of the other tax breaks in the Republican budget — will fuel greater economic inequality in Arizona. Read the details of the Flat Tax plan here: Arizona budget plan would massively cut tax collections, create flat income tax rate.
Continue reading Republican Flat Tax Feeds Economic Inequality in #AZ (video)
Today was the last Ways and Means Committee Meeting of 2021, and it was a doozie. More interruptions. More suppression of speech. More putdowns.
There were several controversial bills on the agenda, particularly three that take money from public education or lead to more privatization.
SB1273 would allow Student Tuition Organizations (STOs) to give students money for expenses other than tuition. we know that STO’s are not transparent. We know how many scholarships they deliver but not how many students are being served. We also know that some parents get as much is $20,000 a year per child for those children to attend private or religious schools. That’s blatantly unfair and in equitable. SB1273 would just allow them to give away more tax￼￼ with no accountability.
SB1280 is about the privatization of school transportation. There is a previous video on this bill, but things came out in committee that make men more against it. One of my big concerns about strike-everything bill SB1280 is child safety. This bill allows charter schools and districts schools to use some of their current transportation funding in order to give grants to parents. As you may know, charter schools get money for transportation, but they don’t have to use it on transportation. I’m sure you’ve seen the long lines of parents who are picking up or dropping off their kids at charter schools. Public school kids have the opportunity to ride the school bus or perhaps even walk to their neighborhood school. This bill would allow parents to apply for grants to get an unknown amount of money to come up with “innovative ways” to get their kids to school, including paying parents gas mileage or funding neighborhood carpools, city bus passes, or ride sharing services (like Uber or Lyft).
Continue reading Republicans Attack Invest In Ed & Ignore Voters (video)