State Budget & Taxes
State Budget & Taxes
State budgets and taxes represent our shared priorities and values.
Taxes are critical to creating a thriving economy and society, providing the resources for investments in education, and overall well-being. The Arizona Center for Economic Progress works to ensure state resources are adequately funded and tax fairness is a driving force behind strong communities.
State legislature fails to prioritize Tribal post-pandemic needs
The 2021 Arizona legislative session was historic, not only in terms of its length, but also in the largest permanent tax cuts in three decades. For thirty years, continuous tax cuts have contributed to the systemic divestment…
Flat Tax Exacerbates Inequalities for Households of Color
Arizona’s elected leaders have created a tax code that is upside down and regressive– meaning that those with low incomes pay a much higher share of their income in taxes compared to Arizona’s highest income earners….
Legislature’s Flat Tax Proposal Will Cut Revenue for Arizona’s Cities and Towns by $225 Million
The proposed 2.5% flat tax rate and the 4.5% total cap on any income taxes would not only mean a $1.9 billion cut to state revenues, it would also mean a cut to the urban revenue sharing dollars Arizona’s cities and towns…
The flat tax falls flat for most Arizonans
The Arizona legislature is poised to permanently cut over a billion dollars in state revenues, the largest tax cut in the last three decades. This cut will make Arizona’s tax system more regressive than it is today with…
Arizona's regressive tax policy contributes significantly to economic and racial injustice
Tax policy plays a role in the fight for economic and racial justice. The type of tax and how it is structured matters. A new report issued by the Institute for Taxation and Economic Policy (ITEP), Taxes and Racial Equity…
SB1783 is a tax cut for the rich and does nothing to help small businesses
Senate Bill 1783 allows rich individual tax filers to remove profits from their businesses, trusts, and estates from the calculation of their individual taxable income so that they can avoid paying the surcharge established…
Stop politicians from destroying Arizona’s future
Thousands of Arizonans are facing huge challenges during the COVID-19 health and economic crisis. Many have lost their jobs or are working reduced hours, struggling to put food on the table. And many small businesses are…
What did the Arizona legislature miss this year?
This year, state lawmakers in Arizona introduced more than 1,800 pieces of legislation. Committee chairs, using their power through rules and deadlines, select which bills receive a hearing for consideration. Every year…
Arizona's cuts to higher education threaten access and equity
No state has cut more funding from higher education since 2008 than Arizona High-quality, affordable, and accessible public higher education is critical to building a prosperous and robust state economy, where the benefits…
Tax cuts on the horizon in Arizona (yet again)
The economic shockwaves from the COVID-19 pandemic have by no means subsided. According to our recent analysis of Household Pulse Survey data, 1 in 3 households in Arizona cannot afford usual expenses, 1 in 6 renter households…
SB 1452 – Diverting more state dollars to private schools at the expense of public school students
Despite the fact that Arizona voters resoundingly rejected a massive expansion of school vouchers in 2018, several voucher bills have been introduced this session. One of those bills is SB 1452. SB1452 not only extends eligibility…
Governor Ducey's budget proposal
At a time when Arizona is experiencing among the highest rates of COVID in the nation and world, it is critical to examine how the state allocates its resources to address the needs of struggling Arizonans. Amidst the onset…
State of the State
This week, the Arizona legislature convenes for its 2021 session. They do so amidst a pandemic that has taken a devastating toll on millions of Arizonans across the state. Arizona has the worst infection rate in the country….
Kansas Tax Cuts Failed to Spur Jobs and Economic Growth
Kansas Governor Sam Brownback was elected in 2010. Soon thereafter he launched a “pro-growth tax policy” of dramatic cuts for business and high-earning individuals in 2012 that he promised would be a “shot of adrenaline…
Tax dollars from the Cardinals should be funding Arizonans
The prospect of having Kyler Murray, DeAndre Hopkins, and Larry Fitzgerald on the same offense combined with some strong off-season additions to the defense has many Arizona Cardinals’ fans excited for this week’s kick-off…
Legislators should consider new revenue options for addressing state budget shortfall
The Arizona legislature has cut taxes every year but one since 1990 and all of those tax cuts combined have reduced state revenues by more than $5 billion when adjusted for inflation. Many of those tax cuts over the years…
A Tax Cut for Military Retirees Leaves Most Veterans Behind
SB1167 provides a small tax cut for military retirees who receive a military pension, but leaves out 90% of Arizona veterans. SB1167 will reduce state revenues by $15 million and will make it more difficult to invest in the…
Wrong Priorities: It Doesn’t Make Sense to Give a Tax Cut to the Rich While Arizona Asks Children in Public Schools to Wait
Arizona stands to gain $130 million to $230 million in General Fund revenues if it conforms the Arizona tax code to the federal tax changes enacted in 2017. Rather than directing those additional revenues to better prepare…
Are State Lawmakers Working for a Fairer Tax Code for All Arizonans?
The Arizona legislature has cut taxes every year since 1990, resulting in $4.4 billion less in annual state revenues when adjusted for inflation. But most Arizonans have not benefited from the almost three decades of annual…
Bill to Increase Charitable Deductions Comes with Tradeoffs
The federal tax changes passed by Congress in 2017 preserved the charitable deduction for those who itemize their taxes. However, because the tax changes doubled the standard deduction, fewer people are expected to itemize…
Using Increased Revenues from Conformity on More Tax Cuts is Fiscally Irresponsible
Two reports show that conforming Arizona’s tax code to the 2017 federal tax changes will result in a net increase to Arizona’s General Fund revenues in fiscal year 2020, although the two reports differed in the amount…
Supermajority Requirement for Raising Revenues Jeopardizes Arizona’s Economic Future
Arizona’s constitution requires a super-majority (two-thirds) vote of both chambers of the legislature to raise revenue through increased taxes or to reduce or eliminate tax credits, tax exemptions, or deductions – even…
More Than Two Decades of Underfunding Arizona Public School Facilities Hurts Low-Income and Rural Communities the Most
Are the public schools in your neighborhood properly designed to keep students safe and secure? Does the air conditioning system work adequately enough for students to learn in comfortable classrooms on sweltering Arizona…
What are the Neighbors Doing?
For several years, tax cuts have been the tool of choice that many states have used to try to make themselves more competitive and to attract new businesses and jobs to their state. However, many of those same states are…
