Arizona Supreme Court reinstates massive income tax cuts

[in2herbs]

2. There will be a zoom call by the Save Our Schools AZ on this issue. Date and time below:

There will be a zoom call by the Save Our Schools AZ on this issue: here’s that info: SOSAZ Statewide Volunteer Call Apr 24, 2022 06:00 PM in Arizona

Here is some info contained in a pdf I received from SOSAZ about the consequences of this decision.

Designed for conditions that no longer exist
The proposed 2.5% tax rate was intended to soften the impact of Prop 208 for high-income
earners, but now that the courts have voided Prop 208, these cuts are extra welfare for Arizona's
most elite. Over 75% of Arizonans would get just peanuts (fewer than $100), but the top 0.03% of
taxpayers would reap more than $350,000 in tax breaks.

Impossible to reverse
The Arizona Chamber of Commerce recently commissioned a private fiscal analysis on the tax
cuts. That report concluded the cuts would use up nearly all the state's extra revenue, leaving no
room for anything but the smallest future investments in public education. Any attempt to lift
Arizona out of last place for per-pupil funding would require a tax increase. Because Arizona
requires a two-thirds supermajority vote of the legislature to increase taxes, these cuts will be all
but impossible to reverse.

Public school funding crisis
Arizona's investments in public education have simply not kept up with other states. We rank
last in the nation in per-student spending. Our median teacher salary ranks 49th. It would take
more than $3 billion just to lift Arizona to the national average. If we can't provide for our
schoolchildren with this unprecedented $5.3 billion surplus, when exactly can we?

The coming recession
Economics experts project a “significant” chance the economy will fall into a recession within
the next 12 months. According to the memo, a "mild or moderate" recession in Arizona will
require $1 billion in future budget cuts and result in the loss of $1.5 billion in Rainy Day funds. It
doesn't say what might happen if that recession lasts beyond one year or is worse than "mild or
moderate.”

Our current revenue surplus is fueled by federal dollars and covid-related consumer spending.
When those disappear, so will the surplus. Arizona cannot lift its schools out of last place and
also pass massive tax cuts.

Arizona kids deserve better than last place
Arizona's public schools are our largest economic engine. Providing for them sets our state up
for long-term success, while doubling down on tax cuts keeps our future workforce in last place.
Even lawmakers' own fiscal analysis says Arizona's next economic downturn will necessitate $1
billion in cuts. Investing in public education, not more tax cuts, is the fiscally responsible choice.