Manifestly flawed initiative lets corporations off the hook, makes tax increases permanent
FOR IMMEDIATE RELEASE
Contact: Chad Heinrich, Arizona State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]
PHOENIX, Ariz., July 12, 2018—It has yet to officially qualify for the November ballot, but the representative association for Arizona’s small-business owners is wasting no time in preparing to fight an expected proposition that would boost taxes substantially on entrepreneurs.
“Proponents use the word ‘Invest’ in the name of this initiative, but it’s a tax increase and a huge one. Small-business owners and individuals need to check for their wallet, hold on to it, and vote ‘No’ in November,” said Chad Heinrich, Arizona state director for NFIB, which submitted the following ballot argument against the proposition to the secretary of state’s office for inclusion in the publicity pamphlet printed by the secretary of state and distributed to voters statewide.
“NFIB Arizona strongly urges a NO vote on Proposition [To Be Assigned].
- Big corporations would pay lower taxes than small businesses.
- The new taxes it proposes would be virtually permanent.
“This proposition would create a tax-rate shock for small-business owners and stymie their ability to grow and invest in their workforce, costing Arizonans jobs. The rates proposed by this initiative would equal tax increases ranging from 76 percent to 98 percent.
“Most mom-and-pop businesses file their income taxes as individuals. This means their business income is taxed at the personal income tax rate. This proposition would raise this rate to levels on par with California, New York, Massachusetts, and Washington DC—leaving Arizona as one of the highest income-taxing states in the Southwest and nation.
“By nearly doubling the amount of tax paid by small businesses on much of their income, this proposition would kill opportunities for job-seekers and for entrepreneurs looking to expand.
“Furthermore, should this proposition pass, the corporate tax rate would be lower than the personal income tax rate that most small businesses pay. This means that Arizona’s largest corporations would pay lower marginal tax rates than many small businesses.
“This initiative would make the entire income tax rate structure in Arizona permanent. The initiative is written to include both the new higher tax rates and the existing rates, any changes to it are impossible through legislative means. Further, by removing the annual adjustment for inflation in our current rates, the initiative will result in a tax increase for all taxpayers, including teachers!
“Arizona small businesses employ roughly 45 percent of the state’s workforce and add nearly 40,000 jobs each year. It would be foolish to starve Arizona’s engine for economic growth to satisfy the spending appetite of a few. Vote NO.”
###
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
