Proposition 208 Archives - 鶹ýӳ /tag/proposition-208/ Business is our Beat Wed, 25 Aug 2021 19:59:23 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 /wp-content/uploads/2019/01/cropped-Icon-Full-Color-Blue-BG@2x-32x32.png Proposition 208 Archives - 鶹ýӳ /tag/proposition-208/ 32 32 Tax reduction opponents attempt to head to the ballot /2021/08/25/tax-reduction-opponents-attempt-to-head-to-the-ballot/?utm_source=rss&utm_medium=rss&utm_campaign=tax-reduction-opponents-attempt-to-head-to-the-ballot /2021/08/25/tax-reduction-opponents-attempt-to-head-to-the-ballot/#respond Wed, 25 Aug 2021 19:51:43 +0000 /?p=15908 Opponents of tax reforms signed into law by Arizona Gov. Doug Ducey are attempting to block their implementation by heading to the ballot box.    Several progressive activist groups on July 2 filed a voter referendum with the Secretary of State’s office to block bills that phase in a 2.5% tax rate for most taxpayers, that […]

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Opponents of tax reforms signed into law by Arizona Gov. Doug Ducey are attempting to block their implementation by heading to the ballot box.   

Several progressive activist groups on July 2 filed a voter referendum with the Secretary of State’s office to block bills that phase in a 2.5% tax rate for most taxpayers, that cap the top tax rate at 4.5%, and that create a new tax filing classification for small businesses. 

The state constitution allows citizens to pause temporarily the implementation of a bill passed by the Legislature and signed into law by the governor by gathering a minimum number of signatures equal to 5% of those who voted in the last general election. The temporary blockage of legislation spans from the time signatures are certified to the time of the referendum vote in the next election cycle, where voters would determine whether to repeal the law entirely or allow it to stand. 

Opponents of the pro-economic-growth tax reforms signed by Gov. Ducey must gather at least 130,000 valid signatures by September 28 to pause the bills’ implementation and send them back to voters on the November 2022 ballot. 

The citizens’ referendum was last used in 2018 by groups hostile to school choice who blocked the expansion of Arizona’s Empowerment Scholarship Account program. 

Tax reform opponents unsuccessfully lobbied the Legislature earlier this year to reject the bills, which blunted the most severe repercussions of Proposition 208, a measure that would slam certain taxpayers, including small business filers, with a 77.7% income tax increase. 

The urgency of the tax reform opponents to overturn the laws has heightened since the state Supreme Court last week put the fate of the tax increase in doubt. 

The court ruled that the proposition’s attempt to bypass expenditure limits in the state constitution by classifying the new tax revenues as “grants” was unconstitutional. The court left to a lower court, however, the task of determining whether the new revenues would indeed exceed those limits. 

The lower court must strike down Proposition 208 in its entirety if the revenues are found to exceed the limits. 

Even if the pro-tax groups are successful in their signature gathering campaign, the path to the ballot faces its own legal challenges. 

The Arizona Free Enterprise Club has filed a lawsuit arguing that the three bills the groups are attempting to refer to the ballot conflict with the state constitution, which does not allow for legislative actions that are “for the support and maintenance of the departments of state government and state institutions” to be referred to the ballot.

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Covid relief first order of business for Arizona House Commerce Committee Chair in 2021 /2021/01/13/weningerchair-w-pic-of-weninger/?utm_source=rss&utm_medium=rss&utm_campaign=weningerchair-w-pic-of-weninger /2021/01/13/weningerchair-w-pic-of-weninger/#respond Wed, 13 Jan 2021 17:39:18 +0000 https://chamberbusnews.wpengine.com/?p=15045 After an abbreviated legislative session last year due to Covid-19, Arizona lawmakers stepped into the 2021 session this week under pressure to enact policies to steer the state to full economic recovery in the coming months.  Covid relief will be the first order of business, said the incoming chair of the House Commerce Committee, Rep. […]

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After an abbreviated legislative session last year due to Covid-19, Arizona lawmakers stepped into the 2021 session this week under pressure to enact policies to steer the state to full economic recovery in the coming months. 

Covid relief will be the first order of business, said the incoming chair of the House Commerce Committee, Rep. Jeff Weninger (R-Chandler). 

Rep. Jeff Weninger

“Covid is number one and that’s twofold: rolling out the vaccine and taking care of people, and making sure businesses can survive and thrive and they’re not damaged and go out of business for something that was completely out of their control,” he said.  

Getting the word out about existing and new federal relief programs to help  companies and individuals affected by the pandemic is also a top priority, Weninger said.

Third term as Commerce Committee chair 

Weninger, a small business owner who operates restaurants across metro Phoenix, is serving his third consecutive term as the chair of the Commerce Committee, which oversees regulatory activities that impact industries. 

During his tenure, Weninger has sponsored and co-sponsored numerous business-related bills. Among them, bills to create tax credits to spur affordable housing, expand telemedicine coverage, attract high-tech industry, and institute crowd-funding legislation to give small companies greater access to capital.

Weninger spoke to 鶹ýӳ about what he foresees as top priorities for the 2021 session. 

Adopt business-friendly policies to attract industry, jobs 

In addition to COVID relief, maintaining Arizona’s reputation as a “tax friendly and regulatory friendly” state will be a high priority to continue to attract a diversity of industry and high paying jobs, Weninger said.

“That is why we have been so successful for the past six years. We’ve had a renaissance of businesses moving here and expanding here and growing here and that is why our budget is in the incredible shape it is in today,” he said, referring to the state’s $1 billion rainy day fund. 

Lessen negative impact from Prop. 208 tax hike 

The passage of Proposition 208 moved 鶹ýӳp to one of the highest income tax states for certain earners and small business owners, Weninger said. 

The intent was to provide new funding for education. But tens of thousands of small businesses that file their taxes under the individual tax code could be affected as well. That threatens to severely hamper the state’s ability to retain and attract investment, he said.   

Lawmakers are brainstorming solutions to mitigate some of the impacts, particularly for small companies with 500 or fewer employees. Expect to see some tax reforms to help.  

“The voters voted it in, so how do we keep our budget in a safe place and make us attractive for this mass exodus from California and other states,” Weninger said. “We want to make sure we have policies in place that won’t have them just driving right by Arizona on their way to Texas. 

“We’ve done a great job for a while making sure that doesn’t happen, but we need to find a way to make sure that doesn’t happen with Prop. 208.”

Protection from frivolous lawsuits, regulatory reform, telemedicine

Others goals this session will be to enact legislation to protect responsible companies and organizations from frivolous COVID-19 lawsuits, promote expansion of virtual and digital services like telemedicine, and implement regulatory reforms to reduce costs on companies and individuals. 

Expect bills to close student achievement gaps, fund workforce initiatives, and improve water and transportation infrastructure, he said.  

Alcohol-to-go compromise to push up restaurant, bar profits

As a restaurant owner who had to adapt to survive the pandemic disruptions, Weninger is seeking solutions to aid the struggling bar and restaurant industry as well. One proposal is to expand alcohol-to-go for a variety of establishments. 

“We’re talking about a compromise, a new right for restaurants, bars, grocery stores that don’t have the option right now,” he said. “The bars have been hit very, very hard and they were actually completely shut down for a while, so we don’t want to take a privilege outright that they have had already — and their licenses cost a lot more.”

Federal relief programs for individuals, businesses 

For individuals and businesses financially struggling because of Covid-19, Weninger is strongly encouraging them to apply for existing and new federal relief programs including the Paycheck Protection Program and Employee Retention Tax Credit.   

For more information about these and other programs, go to: . 

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Small business relief, public trust top objectives for new state Senate Commerce chair /2021/01/04/commerce2020/?utm_source=rss&utm_medium=rss&utm_campaign=commerce2020 /2021/01/04/commerce2020/#respond Mon, 04 Jan 2021 17:19:45 +0000 https://chamberbusnews.wpengine.com/?p=14999 Mitigating the impact of Proposition 208 on small businesses and restoring public confidence in elections will be among the top goals for the state Legislature this year, said the new chair of the Arizona Senate Commerce Committee. At the top of the list will be finding ways to help businesses and individuals still struggling from […]

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Mitigating the impact of Proposition 208 on small businesses and restoring public confidence in elections will be among the top goals for the state Legislature this year, said the new chair of the Arizona Senate Commerce Committee.

At the top of the list will be finding ways to help businesses and individuals still struggling from disruptions during the pandemic, said the new Commerce chair, Senator J.D. Mesnard (R-Chandler).

Senator J.D. Mesnard

“There will be certain priorities that will be everybody’s priorities like responding to Covid, and one major aspect of that will be how it has impacted our businesses,” said Mesnard, who spoke to 鶹ýӳ about what he foresees as priorities in 2021.  

With Covid-19 shutting down much of last year’s session, lawmakers must scramble to address these and other pressing concerns, he said.  

“Because we pretty much hit the road last March when Covid arrived, we really haven’t done much, so there will be a lot of interest about what we can do to help individuals and businesses,” Mesnard said. “There seems to be light at the end of the tunnel with the vaccine,  but it still will take months.” 

Mesnard, a small business owner, investor and consultant, was named the new chair of the  Commerce Committee that oversees regulation and policy important to business and industry.  

Topping the list of goals this session will be finding ways to help small businesses, organizations and citizens still struggling to get through the final throes of the pandemic, he said. Expect to see some form of legislation to shield businesses from frivolous Covid-19 lawsuits. 

Mitigate damage from Prop. 208

Another most pressing issue this session will be how to offset harm to small businesses and the state from Proposition 208, Mesnard said. 

The proposition created a new tax for top earning individuals and couples, but also is expected to affect tens of thousands of small businesses. These are “pass through” entities, meaning they do not file their income taxes as corporations. Instead, they file under the individual tax code. 

Under the new law, Arizona’s top income tax rate has jumped from thirteenth lowest in the nation to the ninth highest. The rate jumped from 4.5 to 8 percent, a 78 percent increase, affecting individuals who earn $250,000 and joint filers who earn $500,000. Small business owners who file under the individual tax code are subject to the tax as well. 

The new tax rate could have dire consequences for Arizona’s economic health, said Mesnard, who is working with fellow lawmakers, business advocacy and trade groups, and legislative budget staff to find ways to lessen the impact and protect the state’s ability to attract new investment.

“You can’t have the 9th highest income tax rate in the country and the 11th highest combined average sales tax rate and I don’t know what the commercial property tax rate is but it’s got to be certainly in the top half of the country. You can’t have all those things and expect Arizona to be a place attractive to move to,” he said. “So we need to figure a pathway forward.”

Committee members already are starting to look at possible changes in tax policy to “rescue ourselves from the predicament,” Mesnard said. “We don’t want to become a flyover state.” 

“We’ll be looking at our whole tax code to look at what would be good tax policy and how we’ll respond to this. Right now we’re in bransoriming mode. There’s no immediate solution. I think it’s a big challenge, frankly.” 

Public confidence in county and state elections

With a lot of interest over election integrity, another top objective is to reinstill public confidence in the election system, Mesnard said. 

“There’s a lot of people that think the election was rigged or wrought with fraud or irregularities. Others dismiss that entirely,” Mesnard said. “Whether right or wrong, there are lots of doubts and we need to make sure we do everything we can to restore people’s trust and confidence in the election system.”

Mesnard said he would like to see every step of the process analyzed to determine if any changes need to be made to ensure election integrity. 

He also introduced a bill that would allow a recount of an election to anyone willing to pay for it. 

The bill, , states that the person requesting a recount would have to file a bond with the Superior Court and pay an amount determined by the court to be sufficient “to provide for full reimbursement of the costs of conducting the recount.” 

“This should not be a Republican or Democrat thing. Because if people don’t have confidence in the system, I don’t know a greater existential threat to the democratic electoral process than people who don’t show up to vote, who don’t think it’s real,” he said. “I mean, that’s what you see in other parts of the world. God forbid that type of thing happens here.”

Mesnard home grown 

Before being elected to the Arizona Senate in 2018, Mesnard served eight years in the House of Representatives. He was speaker of the House for the 2017–2018 term. Prior to running for office, he spent eight years working at the Arizona Senate where he served as a policy adviser on issues ranging from education, transportation and retirement, to family services and government administration. 

Mesnard attended Arizona State University where he earned a Bachelor’s degree in music composition and Master’s degrees in business and public administration. 

He helped establish Voices of the World, a non-profit Christian charity that provides humanitarian aid to the poor and destitute of the world. A husband and new father, he lives in Chandler.

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Arizona 鶹ýӳ CEO lays out facts about Prop. 208 /2020/11/02/glennhamerprop208qa/?utm_source=rss&utm_medium=rss&utm_campaign=glennhamerprop208qa /2020/11/02/glennhamerprop208qa/#respond Mon, 02 Nov 2020 17:57:07 +0000 https://chamberbusnews.wpengine.com/?p=14581 Glenn Hamer, the president of the Arizona 鶹ýӳ of Commerce and Industry is a loud, vocal opponent of Proposition 208, the Invest in Education ballot initiative.  He’s not alone. More than 55 major business organizations have joined him. From the Arizona Farm Bureau and Arizona Trucking Association to the Arizona Manufacturers Council and the state […]

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Glenn Hamer, the president of the Arizona 鶹ýӳ of Commerce and Industry is a loud, vocal opponent of Proposition 208, the Invest in Education ballot initiative. 

He’s not alone. More than 55 major business organizations have joined him. From the Arizona Farm Bureau and Arizona Trucking Association to the Arizona Manufacturers Council and the state chapter of the National Federation for Independent Business.

Another 50-plus elected officials have come out publicly against the initiative. Governor Doug Ducey, Arizona State Senate President Karen Fann, Speaker of the House Rusty Bowers, Yuma Mayor Doug Nicholls, and Goodyear Mayor Georgia Lord, to name a few. 

“We’re a ‘hell, no’ for this job killing initiative,” said Hamer. “It threatens to destroy Arizona’s reputation as a pro-business, pro-job creation state.

“This proposition would shatter that by making us the ninth highest small business tax state in the United States of America.”

Hitting the virtual “pavement”  

Hamer, whose organization represents about 4,500 employers statewide, has been pounding the virtual “pavement” for several months to get out their message — and the facts — to the public about why this is so harmful.  

Prop. 208 targets top earners in the state and is intended to fund education. If passed, the marginal income tax rate would almost double for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent.   

But Hamer said tens of thousands of small businesses would be affected as well. That’s why so many groups are opposing it. 

Q and A: Glenn Hamer, president and CEO, Arizona 鶹ýӳ of Commerce   

What does an education funding initiative have to do with small business?

This would be the largest tax increase in Arizona history. Fifty percent of those impacted by this massive tax hike will be small businesses. This tax would put Arizona in the top-10 list of states with the highest small business tax — up there with California, New York and New Jersey.  

And by the way, these small businesses employ 58 percent of Arizonans that work in the private sector. They are small companies, sole proprietors, LLCs and others who file their income taxes as “pass through” entities under the individual tax code. They do not file under the corporate tax code.  

This proposition’s ultimate goal is to generate $1 billion for education. That means a quarter to a half-a-billion dollars will be carried by a lot of these small businesses and a lot of workers who are going to lose their jobs. 

And the last time I looked, we were still in a pandemic. We know that nationally, 1 out of 7 businesses are gone. Gone for good. And we know many more are teetering on the brink.

At this critical moment, pro-growth policies are what will help businesses recover and get the unemployed back to work. At the same time, we need the small business employers that are doing well to continue growing. We need them to keep employees on the payroll. We don’t want to do anything — anything — to make their job more difficult right now.

What about big corporations? Will they be subject to the tax?

No. It doesn’t affect the Fortune 500. So they collectively will not pay a penny of this. 

It’s an important distinction. Small businesses pay their taxes on the individual portion of the tax code. Proposition 208 raises the top rate by 77.7 percent, which means small businesses will pay a top rate of 8 percent, much higher than the corporate rate of 4.9 percent. We would be the only state in the country to basically double the tax on small businesses, and at a time when so many are struggling. 

What are economists’ projections if Prop. 208 succeeds? 

Numerous economists and commentators have pointed out that high-tax states tend to underperform economically, sometimes dramatically so. An analysis of Proposition 208 by economists Dr. Art Laffer, Stephen Moore and Erwin Antoni compared the economic health of seven states with no income tax against the nine states with the highest income tax rates. Those seven states outperform the high tax states when it comes to population growth, employment growth, personal income growth and GDP.  

In our own neighborhood, we’d stick out like a sore thumb. Our neighbors Utah, Colorado and New Mexico all have top income tax rates under 5 percent but our current 4.5 percent rate is the lowest. Nevada doesn’t have a state income tax. If Proposition 208 passes we’d rocket up to a top rate of 8 percent.

You and other organizations have stated the high tax initiative would also affect jobs. How many jobs are at risk? 

As far as jobs, there has been debate about how many it would impact. The question is, will it be tens of thousands of jobs or hundreds of thousands of jobs? We’re already down 125,000 jobs from the pandemic. 

If 208 passes, the estimates range from 10,000 to 230,000 jobs will be lost over the next decade. Whatever the number, why take a risk in an economy that has been performing well and, because of that, allowed us to increase investments in our K-12 education system? 

Teacher salaries are a concern for many Arizonans. Won’t this provide higher salaries for teachers?

There is no guarantee of how much will actually go to teachers. There’s little to no accountability for spending in the initiative language. For instance, it mentions raises for “educators.” That encompasses workers in the cafeteria and bus drivers. These are honorable jobs but there is nothing to show that giving bus drivers a raise will improve student performance in the classroom. 

What is your response to criticism that the business community has failed to support education funding?

It’s a phony baloney sandwich. Business groups have long supported funding initiatives to increase education funding and improve academic outcomes. We strongly supported Governor Ducey’s 20 percent by 2020 plan for teacher raises. And the fact is we’re investing a billion extra dollars into our K-12 system and we’ve been able to do that because of our healthy economy. 

We support more dollars for teachers, but we’re not going to support something that’s going to cause great pain to the economy during a pandemic.

To read testimonials from other business and elected leaders who oppose the measure, go to: .

Here are major business groups in Arizona calling for a “no” vote:

National Federation for Independent Business 

Associated General Contractors Arizona Chapter

Arizona Cattle Feeders Association

Yavapai County Contractors Association

Arizona Automotive Wholesalers Association

Arizona Automobile Dealers Association

Arizona Bankers Association

Arizona Lodging and Tourism Association

Wine and Spirits Wholesalers Association of Arizona

Beer and Wine Distributors of Arizona

Commercial Real-estate Executives for Economic Development 

Free Enterprise Club

Goldwater Institute

Greater Phoenix Leadership 

Americans for Prosperity

Arizona Association of REALTORS

Arizona Builders Alliance

Arizona Cattle Growers Association

Arizona 鶹ýӳ of Commerce

Arizona Farm Bureau

Arizona Farm and Ranch Group

Arizona Manufacturers Council

Arizona Rock Products Association

Arizona Tax Research Association

Arizona Trucking Association

Homebuilders Association of Central Arizona

Arizona Multihousing Association

InVision

Arizona Cotton Growers Association

NAIOP | Commercial Real Estate Development Association

Prosper

Southern Arizona Home Builders Association

Southern Arizona Leadership Council

United Dairymen of Arizona

To see a complete list of business groups, elected officials and others who oppose the initiative,  go to: .

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Arizona commercial real estate pros warn Prop. 208 would stifle development /2020/10/29/arizona-commercial-real-estate-pros-warn-prop-208-would-stifle-development/?utm_source=rss&utm_medium=rss&utm_campaign=arizona-commercial-real-estate-pros-warn-prop-208-would-stifle-development /2020/10/29/arizona-commercial-real-estate-pros-warn-prop-208-would-stifle-development/#respond Thu, 29 Oct 2020 16:54:57 +0000 https://chamberbusnews.wpengine.com/?p=14548 As voters head to the polls next Tuesday, commercial real estate and economic development professionals are calling on citizens to vote “no” on Proposition 208. The high-tax measure threatens Arizona’s economic growth and recovery, and could punish thousands of small construction businesses who would be subject to the new tax, they said.  “I’ve been in […]

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As voters head to the polls next Tuesday, commercial real estate and economic development professionals are calling on citizens to vote “no” on Proposition 208. The high-tax measure threatens Arizona’s economic growth and recovery, and could punish thousands of small construction businesses who would be subject to the new tax, they said. 

Tim Lawless

“I’ve been in Arizona for about a quarter of a century and this is the worst proposition to make the ballot during that time, and it may be one of the worst in the history of the state,” said Tim Lawless, president of Commercial Real-estate Executives for Economic Development (CREED).  

“It’s divisive. It’s very chilling to job creation and it’s basically killing the golden goose. We’ve got a good thing in Arizona and we need to keep the momentum and I feel this is going to sidetrack that totally,” said Lawless, whose organization represents the largest property owners in the state, accounting for a minimum of 70-million square feet under management and more than 5,000 business tenants, most of whom are small businesses. 

Why they oppose the ballot initiative 

Lawless is one of several real estate and economic development experts who spoke to 鶹ýӳ about why they oppose Prop. 208. 

The ballot initiative is intended to tax top earners in the state to fund education. But it also will affect a large number of small businesses and sole proprietors in the construction industry who file their taxes under the individual tax code, not the corporate tax code, he said. 

In Arizona, the industry employs close to 150,000 workers, according to the Arizona Office of Economic Opportunity.

“People in commercial real estate, especially the developers, take a lot of risk when they decide to build a multi-million-dollar development, and they are typically small business people,” he said. “Many companies have 10 to 15 employees and everything else is pretty much subbed out and they create LLCs to push the work forward. 

“It’s really their skin in the game and this is going to have a chilling effect on them wanting to take greater risks.” 

Jobs, growth, tax revenues at risk  

The tax measure, also known as the “Invest in Ed” initiative, would almost double the marginal income tax rate for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent.   

Local economists and groups like the nonprofit Arizona Tax Research Association and the Goldwater Institute have calculated that passage would create a dampening effect on jobs, new business growth and tax revenues. 

Commercial real estate group values education, not Prop. 208

Suzanne Kinney

Suzanne Kinney, president and CEO of the Arizona Chapter of NAIOP, the commercial real estate association, said her members care deeply about education and understand how important it is to pay teachers and support staff fair salaries in order to attract and retain the best talent. 

But placing the tax burden on the shoulders of small contractors, subcontractors, manufacturers and other small companies is unfair and creates a foreboding look into the future, Kinney said. 

“We believe a well-educated workforce is essential to the livelihood of Arizona. However, implementing a funding mechanism that singles out a small sliver of taxpayers will have a negative, long-lasting effect on small businesses,” she said. 

Competing with no-tax, low-tax states for major corporations 

If passed, the tax increase initiative would result in Arizona having the country’s ninth-highest income tax rate, said economic forecaster Elliott Pollack, CEO of Elliott D. Pollack & Company, who spoke during a town hall to chambers of commerce leaders Monday. 

Pollack said other high-tax states like California and New York are shedding people and jobs.

Arizona could easily lose its competitive edge to other states with lower income taxes, or no income taxes, like Texas, Kinney said. Brokers who work with national manufacturers are being told by some of their clients that they are putting planned investments on pause until the ballot initiative is decided.  

“If Proposition 208 passes, Arizona could get passed over for major corporate locations, including in the manufacturing sector,” she said. “Too many of our neighboring states have lower income tax rates, including several that have no income taxes at all.”

Stable funding source for education still needed

Kinney said she is concerned that the state has been unable to rally around a stable funding source that will provide schools with the resources they need without damaging the economy. 

“As a policy wonk, I am certain there are better ways to fund education. My dream would be to see all those who care about education come together around a better solution,” she said.

鶹ýӳs, real estate and economic development groups voting “no”

鶹ýӳs of commerce across Arizona, and real estate and economic development groups are opposing Prop. 208 including: 

Commercial Real-estate Executives for Economic Development 

Arizona Association of REALTORS

Arizona Builders Alliance

Homebuilders Association of Central Arizona

Arizona Multihousing Association

NAIOP Commercial Real Estate Development Association

Southern Arizona Home Builders Association

Southern Arizona Leadership Council

Associated General Contractors Arizona Chapter

Yavapai County Contractors Association

For more information and to view a complete list of who opposes the high tax measure, go to: . 

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President Trump and Gov. Ducey blast Bernie Sanders’ support of big state income tax increase /2020/10/20/president-trump-and-gov-ducey-blast-bernie-sanders-support-of-big-state-income-tax-increase/?utm_source=rss&utm_medium=rss&utm_campaign=president-trump-and-gov-ducey-blast-bernie-sanders-support-of-big-state-income-tax-increase /2020/10/20/president-trump-and-gov-ducey-blast-bernie-sanders-support-of-big-state-income-tax-increase/#respond Tue, 20 Oct 2020 18:50:02 +0000 https://chamberbusnews.wpengine.com/?p=14475 With Election Day just two weeks away, the campaign over whether to increase Arizona’s top individual income tax rate by 77.7% has captured national political leaders’ attention. President Donald Trump at a rally in Tucson on Tuesday urged Arizonans to reject Proposition 208. “They have some deal in Arizona where your taxes are going to […]

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With Election Day just two weeks away, the campaign over whether to increase Arizona’s top individual income tax rate by 77.7% has captured national political leaders’ attention.

President Donald Trump at a rally in Tucson on Tuesday Arizonans to reject Proposition 208.

“They have some deal in Arizona where your taxes are going to go way up. You know that, right?” the president said. 

The president also referenced Vermont Sen. Bernie Sanders’ support for the initiative.

Sen. Bernie Sanders (I-VT)

Sanders, whose views occupy the far left of the American political spectrum, last week he was supporting the tax increase, which would also affect small businesses that are organized as pass-through entities and pay their taxes on the individual portion of the tax code. 

Arizona Gov. Doug Ducey has cited Sanders’ support as evidence that the initiative is extreme.

During a visit to a Phoenix charter school last week by Education Sec. Betsy DeVos, the governor called attention to Sanders’ support of the initiative, saying passage of the tax increase “would make us the equivalent of Bernie Sanders’ Vermont, or New York state or Washington, D.C.” according to of the event.

At yesterday’s Tucson campaign stop, Ducey thanked the president for calling attention to “what Bernie Sanders wants to do here by endorsing Prop. 208, wanting to raise our taxes 77%. So, on November 3rd, vote no on Prop. 208.”

Jaime Molera, the chairman of the , has referred to the initiative as “Bernie Sanders-esque” throughout the campaign.

Following the Sanders endorsement, Molera on Twitter, “Though my opponents dismissed my reference to a ‘Bernie Sanders-esque’ taxing scheme in my two debates (AZ Republic, who endorsed our position, and the AZ Cap Times) we find out it is real and backed by the extreme element of the progressive-wing.”

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It could be your job /2020/10/15/it-could-be-your-job/?utm_source=rss&utm_medium=rss&utm_campaign=it-could-be-your-job /2020/10/15/it-could-be-your-job/#respond Thu, 15 Oct 2020 21:13:47 +0000 https://chamberbusnews.wpengine.com/?p=14429 We know Proposition 208 will cost Arizona jobs. The question is simply how many. A study by the Goldwater Institute says under the most conservative scenario job losses will reach a minimum of 124,000 over the course of a decade. An analysis by national economists Steve Moore and Dr. Art Laffer is even more pessimistic,finding that an estimated 200,000 […]

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We know Proposition 208 will cost Arizona jobs. The question is simply how many.

A  by the Goldwater Institute says under the most conservative scenario job losses will reach a minimum of 124,000 over the course of a decade.

An  by national economists Steve Moore and Dr. Art Laffer is even more pessimistic,finding that an estimated 200,000 jobs would be eliminated over 10 years.

The dean of Arizona’s delegation of economic soothsayers, Elliott Pollack,  the “new tax rate would put the state at a significant competitive disadvantage.”

Even the left-of-center Grand Canyon Institute  the job losses at 10,000.

Left, right, or center, the consensus is that Proposition 208 will lose jobs.

It could be your job.

Proposition 208 raises the state’s top individual income tax rate by nearly double. It doesn’t touch the corporate tax rate.

It’s an important distinction. Small businesses pay their taxes on the individual portion of the tax code. Proposition 208 raises the top rate by 77.7%, which means small businesses will pay a top rate of 8%—much higher than the corporate rate of 4.9%.

That’s not fair, and it’s not smart.

Small businesses’ contribution to the Arizona economy is significant and it’s a sector that will be essential to the state’s post-pandemic economic recovery. Fifty-eight percent of Arizonans employed in the private sector work for an employer who pays their taxes via the individual income tax. They get absolutely walloped by Proposition 208. Their ability to keep and grow jobs is put in doubt. It could be your job that’s at risk.

We’re in the middle of a pandemic that has done tremendous damage to the Arizona and national economies. Arizona has clawed back a little more than half of the more than 290,000 jobs it’s lost during the pandemic, but we’re still down nearly 140,000 overall. Do we really want to risk even more damage to the economy? Proposition 208 makes the economic recovery more difficult.

Proposition 208 is not a mainstream proposal. It was not crafted as part of a dialogue between lawmakers, the education community, and job creators. Proposition 208 is extreme. Bernie Sanders has endorsed it. That’s an endorsement that speaks volumes. No one will mistake Bernie Sanders as an advocate for job creators and small businesses. He certainly doesn’t know Arizona.

In fact, nothing about this proposition is Arizona-grown. This is a science experiment gone bad cooked up by out-of-state activist groups.

The proponents’ coalition is paper thin. A handful of the usual suspects who never met a tax increase they didn’t like.

Meanwhile, the opposition to Proposition 208 is broad and deep. , urban and rural, representing industries small and large, from real estate to agriculture to tourism and everything in between opposes Proposition 208. Small business, the sector of our economy targeted by the initiative, is solidly against the proposition’s passage. The Arizona Small Business Association, the National Federation of Independent Business, and local chambers of commerce across the state are some of the measure’s most vocal opponents. Even national powerhouse the U.S. 鶹ýӳ of Commerce  Proposition 208.

Vote no on Proposition 208. Arizona can do better than to put its economy and thousands of jobs—maybe your job—at risk.

Glenn Hamer is president and CEO of the Arizona 鶹ýӳ of Commerce and Industry. 

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