ARIZONA INCOME TAX "REFORM" AND "CONFORMITY"
On May 15, 2019 The LD-11 Legislative Team, Representative Mark Finchem, Representative Bret Roberts, and Senator Leach released the following statement regarding Arizona Income Tax Reform and Conformity:
Summary: No matter what the result of our efforts to adopt tax reform with conformity, we are advocating for three significant points.
1. Through real tax reform and bracket adjustments, we believe it is good policy to keep the tax cuts that President Trump signed into law at the Federal level, in the pockets of the people who received relief. Many Arizonan's at the lower end of the wage scale, the "working poor," received an unexpected increase in their Federal tax return this year.
2. We do not want to see the increased educator wages delivered by the 20X2020 plan, drawn down because of State income tax non-conformity. These middle-class professionals deserve the pay increase; to siphon the Federal tax cut away with a State tax increase related to non-conformity is disingenuous.
3. A vote against tax reform and conformity is a vote for tax increases on the working poor and middle-class professionals and job creators, but that is exactly what our Democratic colleagues say they will do.
Sen. Vince Leach says, "Our position has been clear for well over a year, protect the tax relief that Arizonan's have received from the Federal tax man, and make sure the State tax man does not take it." With over a billion dollars in so-called surplus, driven by sound conservative policy decisions over the last six years, now is not the time to up the ante and take even more from Arizona Taxpayers. In a recent poll, nearly two-thirds of Arizonan's said they feel that they are, "taxed at about the right amount," with all things considered.
"Now is the time to empower the people of Arizona to build up their own personal savings accounts, not the State's so-called rainy-day fund." says Rep. Mark Finchem. The favored plan involves full conformity with meaningful tax reform -simplification- with three tax brackets, and which holds harmless most wage earners. "For some, there is a slight tax increase, for many others, there is a significant tax decrease, but we support a policy that is as close to net-neutral as possible," says Rep. Bret Roberts."