AZ House To Try To Strong-Arm Bogus Budget + Flat Tax Proposal On Monday

The Republican leadership of the Arizona legislature and Governor Ducey pulled a  Ross and Rachel from Friends: “We were on a break!” for the past week because they did not have the votes to pass the bogus budget + flat tax proposal negotiated between the Republican leadership and the governor – excluding Democrats who represent almost half the population of Arizona.

There were no committee hearings, and no opportunity for public testimony on the bogus budget + flat tax proposal. The public has always been opposed to this ridiculous flat tax idea supported by the “Kochtopus,” whose interests Ducey serves. That’s why the flat tax has always failed over the past decade or so.

AZEDNEWS reports (excerpt):

The Grand Canyon Institute released an analysis of the budget proposal last week that showed that Arizonans who live in rural and remote areas and Tucson will bear the brunt of the flat tax proposal, while Arizonans in larger population centers like Maricopa County and affluent communities will benefit.

“An estimated 350,000 Arizona households with incomes above $150,000 will be the largest beneficiaries. Whereas 1.5 million households (four times as many) would see little or modest changes in their state income tax,” according to the Grand Canyon Institute analysis. 

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Education advocates including Save Our Schools Arizona, Stand for Children and Arizona Education Association say the 2.5% flat tax and proposed tax cuts in Gov. Doug Ducey’s and Arizona Republican legislative leaders‘ budget proposal are ways to avoid the voter-approved Prop. 208 Invest in Ed Initiative [approved by voters] that would provide more stable funding for Arizona’s public schools, students and teachers, reports KJZZ 91.5 FM.

After voters approved Proposition 208 in November, Gov. Doug Ducey and GOP legislative leaders devised a plan to reduce and flatten the state’s income tax rates.https://t.co/qaXQdyhMeM

— KJZZ Phoenix (@kjzzphoenix) June 1, 2021

After some Republican legislators failed to roll over and do as they were told, Governor Ducey pulled a Jan Brewer circa 2013 and vetoed 22 bills, and declared a moratorium on signing any bills until he gets what he wants, like a spoiled rotten 3 year old having a temper tantrum. Ducey wields veto pen on 22 bills, says lawmakers need to get him a budget. Are we really doing this again?

Note: I agree with The Republic’s resident GQP apologist Robert Robb about as frequently as snow in June in Arizona, but on this extremely rare occasion he is actually right about something, for a change. Arizona’s budget bills are clearly unconstitutional. Will someone sue? (video report) Arizona is not supposed to use budget bills to make policy, Robert Robb says, but it keeps doing so – and this year may be the worst yet (i.e, it violates the Constitution’s singe subject rule).

Robb openly admits that the “Kochtopus” Death Star, the Goldwater Institute, for whom he used to flak, will not sue because they actually support the ridiculous flat tax, as of course he does. Robb says this year’s budget bill is “blatantly unconstitutional.” He predicts there will be a citizens referendum over the flat tax because it will have been unconstitutionally enacted if it passes as part of the budget bill. Safe prediction. Opponents of Arizona tax-cut proposal already talking about ballot referendum.

Lawless Republicans doing something unlawful and unconstitutional? You’re shocked, Im sure (he said, dripping with sarcasm).

Nevertheless, “Republican leaders of the Arizona House plan to call members back to the Capitol on Monday and try to muscle strong-arm through a budget they negotiated with GOP leaders of the Senate and Gov. Doug Ducey, but there remain doubts” whether they have the votes. Arizona House plans budget vote but short of backing:

With only a one-vote margin and no Democratic support, House Speaker Rusty Bowers said Friday that despite some vocal opposition from GOP members, he is going to push to get Republicans to pass the $12.8 billion spending plan starting next week.

“We are going to move, let’s just put it that way,” Bowers said in an interview.

Bowers faces discord among his own caucus, with some believing there is too much spending in the budget and some objecting to the size of a historic tax cut out of fears it will hurt the state’s long-term finances as well as city finances.

Both chambers adjourned last week amid the split among Republicans with no plans to return until June 10, unless a deal was cut. But Bowers hopes pushing lawmakers may pay off.

“We’ve worked for six months on this … budget. [Behind closed doors in secret, with no public hearings and no Democratic input.] And it’s a historic opportunity. And we’re gonna see where people stand on it,” he said. “Sooner or later, we’re going to have to fish or cut bait. And then, there’s still tomorrow.”

He still doesn’t have the backing of one outspoken member, Republican Rep. David Cook of Globe.

“At this point, I remain opposed to the budget proposal introduced by House leadership,” Cook said in a statement Friday. “I am hopeful that changes can be made to address my concerns including the negative impact to cities and towns, ongoing debt, unfunded pension liabilities, capitol improvement needs and investment in water infrastructure for the future expected Arizona growth.”

Cook also said he was concerned that billions of dollars of federal COVID-19 relief money “has created a false economy and I believe it’s prudent to take some time to ensure we don’t send the state off of a fiscal cliff.”

The tax cuts in the proposal would shave at least $1.9 billion from state revenues when they are fully phased in, which would take three years. The biggest winners will be the wealthy, who will be mainly shielded from a new voter-approved [Prop. 208 Invest In Ed] surcharge and get the biggest benefits from a flat-tax proposal that lowers rates to 2.5%. The current top tax rate is 4.5% for high-earning Arizonans, plus the new 3.5% surcharge. Couples earning over $500,000 a year would pay a maximum of 4.5% under the proposal instead of 8% foreseen under Proposition 208.

Cook and Republican Sen. Paul Boyer have been outspoken in their concern that the tax cut will hurt cities, which get a set share of income tax revenue. Boyer said Friday he too was still opposed.

Republican Majority Leader Ben Toma said a week of negotiations with members have brought some changes to the budget deal, including an increase in the share of income tax revenue cities get from 15% to 17%. He contends its enough to spare cities from revenue declines. Whether that’s enough to get support from Cook and others remains unclear.

Revenue sharing is also a constitutional provision approved by the voters. You can’t just change the formula.

[A] frustrated Toma said he was willing to see how the votes come out.

“At this point, I don’t think our members can hide behind anonymity anymore,” he said. “The board of truth (the vote tally board) is gonna say who’s up for what and they’re gonna have to explain. This is a good budget, all things considered. If they want to vote no, they’re gonna have to explain why.”

Um, because it’s unconstitutional! Nuff said.

Other changes Toma noted are the removal of two tax credit provisions that some fiscal conservatives opposed. They include a low-income housing credit and one for so-called “angel investors” who put money into startups. Those will get separate votes.

Also of concern to Cook is the amount of debt the state is carrying. An Associated Press analysis shows the state is on the hook for $6.6 billion in pension debt and $7.6 billion in bonds, lease-purchases and payment deferrals. That includes $930 million owed to schools from a budget gimmick used following the Great Recession that delayed nearly $1 billion in payments. The proposed budget would pay school debt down by just $30 million.

Boyer is concerned about the scope and permanence of the tax cuts.

[Senate President] Karen Fann acknowledged Friday that she does not plan to follow the House lead and reconvene on Monday.

“The Senate will convene when we believe we have 16 votes to pass a budget,” she said via text message, noting that’s not now the case.

Lawmakers face a constitutional deadline of June 30 to enact a spending plan for the budget year that begins July 1. Without a budget, the state cannot spend money to keep programs and offices operating.