Proposition 208 is the wrong plan at the wrong time. It will have far-reaching negative impacts on our economy and cause further damage to small businesses as they continue to battle back from the COVID-19 pandemic.
Passing the largest tax increase in Arizona history at our most vulnerable time is the wrong strategy!
Worse, Proposition 208 is being bankrolled by out-of-state special interest groups that are attempting to raise our taxes to the TOP TEN HIGHEST in the country, while ignoring the devastating impacts that will have on our economy.
Some Key Facts About Prop. 208, “Invest in Education Act”
Proposition 208 increases the top individual state income tax rate from the current 4.5% to 8% — a 77.7% increase, vaulting Arizona into the top-10-highest income tax rates in the country. The tax increase dramatically undermines Arizona’s welcoming environment for small businesses, which pay their taxes on the individual portion of the tax code, not the corporate tax code. Fifty percent of taxpayers whose tax rates will be directly targeted are small business owners. (Source: Goldwater Institute.)
“If Proposition 208 passes, small businesses will pay a higher top tax rate than big business—even the Fortune 500—but you wouldn’t know that by watching the proponents’ ads,” No on Prop. 208 Chairman Jaime Molera said. “The proponents’ ads fail to disclose that Proposition 208 won’t do anything to enhance teachers’ base pay. That’s because the initiative relies on the most volatile slice of tax revenues. No school district would base its budgets and teacher contracts on such an unpredictable source.”
The proposition would funnel millions of dollars into the educational system — yes, system, not classrooms. Tax money collected via Prop. 208 “would be placed in the student support and safety fund, to be used first to pay the administrative costs of implementing, administering and enforcing the measure…”
Whatever is leftover then would be divided by formula via grants to school districts, charter schools, the state education system, etc. “The grant monies could be used for a variety of purposes,” so don’t be surprised if your tax money is used to fund new curriculum in subjects you disagree with. (1619 Project, anyone?)
VOTE “NO” on Proposition 208.