April 29, 2019
To: Members of the Arizona Legislature
From: Americans for Tax Reform
Re: Reject Senate Concurrent Resolution 1001 and House Concurrent Resolution 2024
On behalf of Americans for Tax Reform (ATR) and our supporters across Arizona, I urge you to reject Senate Concurrent Resolution 1001 and its companion, House Concurrent Resolution 2024, which would ask voters to approve a permanent $1.2 billion sales tax increase. If implemented, this massive tax hike would inflict a great deal of harm on hardworking individual taxpayers, families, and employers across the Grand Canyon State.
There is a wealth of social science demonstrating the economic harm that results from raising taxes. John Hood, chairman of the John Locke Foundation, a Raleigh, N.C.-based think tank, surveyed over 680 peer-reviewed academic journal articles on fiscal policy published over the past quarter century. According to Hood, “the preponderance of peer-reviewed research finds a negative relationship between state taxes and measures such as job creation and income growth.”
Tax Foundation economist William McBride reviewed academic literature going back three decades and found, “while there are a variety of methods and data sources, the results consistently point to significant negative effects of taxes on economic growth even after controlling for various other factors such as government spending, business cycle conditions and monetary policy.”
In addition to being bad policy, tax increases are also bad politics. An ATR analysis of recent election results finds that voters in both red and blue states overwhelmingly rejected tax increases at the ballot. Election outcomes are the most accurate polls available, and they show that the public is opposed to tax increases.
Arizona is currently experiencing a $1 billion surplus. Rather than searching for new ways separate your constituents from more of their income, lawmakers should use existing revenue more efficiently.
ATR opposes SCR 1001 and HCR 2024 and urges lawmakers to vote NO. Voting YES will be scored as a violation of the Taxpayer Protection Pledge.
Americans for Tax Reform