AZ Flag

In a letter to the Arizona House of Representatives, Americans for Tax Reform and several other organizations representing thousands of Arizona taxpayers voiced our strong support for legislation that would phase out the state income tax.

House Bill 2752, sponsored by Representative Bret Roberts (R), would reduce the income tax over time through the use of revenue triggers until it eventually hits zero. This pro-growth bill would be a huge win for individual taxpayers and families, who will be able to keep more of their hard-earned money, and small business that file their taxes under the individual code, as they will be able to invest more in jobs and wages.

The senate companion to this bill – Senate Bill 1489, sponsored by Senator J.D. Mesnard (R) – was unfortunately defeated on the senate floor by a vote of 15-15, with Senators Heather Carter (R) and Kate Brophy McGee (R) voting against it. Now, it is up to the Arizona House of Representatives to advance this responsible, pro-growth concept.

To read the full letter, click here.

March 10, 2020

To: Members of the Arizona House of Representatives
Arizona State Capitol Complex
1700 W Washington St
Phoenix, AZ 85007

 
Re: Support House Bill 2752, Income Tax Phase Out

Dear Representative,

We, the undersigned organizations dedicated to low taxes and limited government, urge you to support House Bill 2752, pro-growth legislation that would phase out the state income tax over time through the use of revenue triggers. If implemented, this bill would be a huge win for hardworking individual taxpayers, families, and small business across the Grand Canyon State.

While Arizona’s income tax may seem competitive when compared to liberal California, lawmakers should not forget that it is competing with the rest of the country as well. Currently, nine states do not impose income taxes on wages. 

Putting Arizona’s income tax on the path to zero would be a smart move. The Tax Foundation’s Business Tax Climate Index consistently ranks states without individual income taxes as having friendlier business tax climates. In the 2020 edition, five – Wyoming (1st), South Dakota (2nd), Alaska (3rd), Florida (4th), Nevada (7th) – of the top 10 best tax climates are no income tax states. The American Legislative Exchange Council’s Rich States, Poor States continues to find that “states with lower taxes, especially those that avoid personal income taxes, have seen significantly better rates of in-migration than states with high income tax rates.”

In addition to making Arizona a more attractive place to live, invest, and do business, HB 2752 would also allow individual taxpayers and families to keep more of their hard-earned money, and would let small businesses who file their taxes under the individual code invest more in jobs and wages. 

HB 2752 would responsibly phase out the state income tax over time, bringing new jobs and opportunities to the Grand Canyon State. This is sound policy, smart politics, and would make Arizona the model for other states to copy. For these reasons, we support HB 2752 and urge you to vote YES.

Sincerely, 

Grover Norquist
President
Americans for Tax Reform

Phil Kerpen
President
American Commitment

Scot Mussi
President
Arizona Free Enterprise Club

Lisa B. Nelson
CEO
ALEC Action

Stephen Shadegg
State Director
Americans for Prosperity Arizona

Jason Pye
Vice President of Legislative Affairs
FreedomWorks

Jenna Bentley
Director of Government Affairs
Goldwater Institute 

Carlos Alfaro
Director of Coalitions
The Libre Initiative Arizona

Tim Andrews
Executive Director
Taxpayers Protection Alliance