PHOENIX โ House Republicans pushed through the plan to sharply cut taxes on the rich, which sends it to GOP Gov. Doug Ducey, who championed it.
The legislation, already approved by the Senate, creates two personal tax brackets of 2.55% for earnings by married couples of anything below $54,544 a year, and 2.98% for anything above that.
There are provisions to cut both tax rates to 2.5% if certain state revenue estimates are reached.
And a separate 4.5% cap on all income taxes will protect the most wealthy โ those earning more than $500,000 a year โ from the effects of a voter-approved 3.5% surcharge to fund public education by effectively limiting their other income taxes to 1%.
The Houseโs approval Thursday, on a party-line vote, came only after the majority party changed the rules to limit debate and objections by Democrats.
โThis budget has a tax cut for all,โโ said Rep. John Kavanagh, R-Fountain Hills.
The Governorโs Office called it โlandmark legislation that paves the way for the largest tax cut in state history.โ
โEvery Arizonan โ no matter how much they make โ wins with this legislation. They will get to keep more of the money they earn under this tax plan,โ Ducey said in a written statement.
But Rep. Pamela Powers Hannley, D-Tucson, said thatโs ignoring a crucial fact: It is structured so that the richest get more than a proportionate share of the benefits.
โThe benefit to somebody at the bottom rung, somebody who makes less than $21,000 in the state of Arizona, is $3,โโ she said. By contrast, the tax cut for someone at the $500,000 income level is $30,000.
And for the super-rich, Powers Hannley said, those in the $5 million range will save $300,000 each year going forward.
โThere it is, the further death of the middle class by rewarding the ultra-wealthy,โโ said Rep. Richard Andrade, D-Glendale
Rep. Bret Roberts, R-Maricopa, said he sees the issue โ and the structure of the tax cut โ through a different lens.
โWhen it comes to the middle class, tax policy, whether the minority party wants to admit it or not, reflects upon jobs and the economy in the state of Arizona,โโ he said. โAnd tax policy is a direct reflection on how many people in the state of Arizona have jobs that want jobs.โโ
Rep. Charlene Fernandez, D-Yuma, derided that as โtrickle-down economics.โโ
Rep. Mark Finchem, R-Oro Valley, rejected claims by foes of the plan that the tax breaks amount to giveaways of state funds.
โGovernment has nothing to give away that it hasnโt taken from somebody else,โโ Finchem said. He said the proper way to see the tax cuts is that the government is simply taking less in the first place.
Democrats are shut out
Unable to cut the size of the tax cut, Democrats attempted to add some of their spending priorities to the Republican-crafted budget, pointing out statements by the governor that Arizona has record revenues.
Rep. Melody Hernandez, D-Phoenix, asked for $200 million for the Arizona Financial Aid Trust, the account used to help provide scholarships for higher education. She said the failure of the state to meet its obligations means students have to take on extra debt.
GOP lawmakers rejected the proposal.
Democrats had no better luck with requests to increase teacher pay, put more state dollars into eviction prevention, and add railroad safety inspectors at the Arizona Corporation Commission.
Nor could they get the the GOP majority to provide state aid to Pima and Maricopa community colleges, the only two systems in the state that donโt get such money.
Rules changed as payback
In fact, the chamberโs 31 Republicans โ all present for the first time in days โ lined up the votes to limit discussion to no more than 30 minutes, even if all amendments to any bill had not even been explained.
House Speaker Russell Bowers, R-Mesa, acknowledged that the change effectively was payback for Democrats refusing to show up for debate on Tuesday when the Republicans had finally corralled the votes among their own caucus to enact $1.3 billion โ and possibly $1.8 billion โ in permanent tax cuts and the $12.8 billion state spending plan. The House was left without a quorum that day as four Republicans were away from the Capitol.
โIt is clear, was clear then, by the absence of an entire caucus, and by actions prior and currently today, that procedural obstruction and delay have been instituted in lieu of civility,โโ Bowers said. He said the time limits still allow for discussion โbut also allow us to get out in an expedited fashion.โโ
Democrats said Republicans have no one but themselves to blame for the fact the Legislature is now up against a deadline to enact a new spending plan for the fiscal year that begins in less than a week.
Fernandez pointed out that Republican leaders brought lawmakers to the Capitol for 26 days where there was absolutely no legislative business done while they tried to line up the votes among their own caucus. She said thatโs because they chose not to involve Democrats in budget negotiations or include their priorities in the plan.
There always has been a limit of three minutes on the ability of legislators to explain their votes. But there has never been an overall cap on the amount of time to discuss specific amendments.
Now, once the clock hits 30 minutes, people still can offer amendments. But there canโt be any discussion of any of those amendments or questions asked.
Rep. Travis Grantham, R-Gilbert, who serves as speaker pro-tem, said there is a precedent of sorts for the new rules. He pointed out the U.S. House has a process where the time for debate on each bill is established by that chamberโs Rules Committee.
With the new rules in place, Republicans approved the tax plan, Senate Bill 1828.
Plastic film and plastic bags should never go in curbside recycling. They can be recycled at most grocery stores instead. Video courtesy of Tucson Environmental Services.
