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. 

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…

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…

Boy participating in a crowded classroom

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…