Governor Doug Ducey is committed to delivering tax relief to the hardworking people of Arizona this year.

In his State of the State address, Gov. Ducey told Arizonans that he wants to use the 2021 legislative session to build on the pro-taxpayer record that he and the republican-controlled legislature have accomplished over the past few years. Gov. Ducey explained

“Every year I’ve been governor, we’ve improved income taxes in the taxpayer’s favor. We’ve simplified the code, lowered all rates, protected them against inflation, and eliminated an entire tax bracket. In all of this, we’ve proven that our government can fulfill every obligation, and answer the unexpected needs of a growing state, without raising taxes.

My goal has been to make Arizona the best place in America to live, work, and do business – by letting Arizonans keep more of their hard-earned money. And having come this far, as other states chase away opportunity with their new taxes, why on earth would we ever want to follow their failed and depressing example?

So I propose, in this session, we work together to reform and lower taxes and preserve Arizona’s good name as a responsible, competitive state. On tax reform, let’s think big.” 

This is great news for taxpayers across the Grand Canyon State. In addition to allowing Arizonans to keep more of their hard-earned money, pro-growth tax reform that results in a tax cut would signal to all that Arizona is still committed low taxes and limited government, and welcome to investment.

“Governor Ducey has enacted a series of laws in Arizona that have been emulated in other states: Right to Try, universal license recognition, and securing Arizonans the freedom to rent out their homes on Airbnb and HomeAway,” said Grover Norquist, president of Americans for Tax Reform. “It is exciting to hear that Arizona will now begin to reduce its state income tax to become the most competitive state in the country. The 40 other states with personal income taxes will be watching.”

Income taxes are consistently cited by CEOs and business owners as a key determinant of business location: the lower the rate, the more attractive the state. As more and more people and jobs continue to move into the 9 states that do not tax wage income, more and more states are looking to reduce and phase out their income taxes.

Tax reform that results in a net tax cut would be a great way for Arizona to remain a competitive state.