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COVID Spending Bill Should Allow for Tax Relief

Mar 26, 2021 by AFP

PHOENIX, AZ – Americans for Prosperity-Arizona (AFP-AZ) today praised Attorney General Mark Brnovich for seeking judicial review of a provision in the latest spending package that prohibits any state funds being used by state governments for tax relief. Arizona will receive $4.7 billion in federal funds from the so-called American Rescue Plan Act, but the state would have to repay the federal government any money deemed to be used for reducing the tax burden on Arizonans.

AFP-AZ State Director Stephen Shadegg released the following statement:

“The federal spending bill preventing any of our state’s billion-dollar surplus from getting back into the hands of Arizona families and small businesses is the exact opposite approach we need to take. Not only does the bill seem to prohibit tax relief using our own state budget surplus this year, but it also potentially ties the hands of state lawmakers from enacting tax reform until the provisions sunset on December 31, 2024. This is unacceptable, and we support Attorney General Brnovich’s attempts to protect the sovereignty of our state and enable state lawmakers to lower taxes. With the passage of Proposition 208, and the economic effects of our government’s response to COVID-19, it is more important than ever to ensure Arizona families can keep more of what they earn.”

Background:

Americans for Prosperity Launches Campaign Urging Sens. Kelly, Sinema to Reject President Biden’s $1.9 Trillion COVID Package, 2/23/21

Over $195 billion was sent to states. Yet, the Urban Institute found state tax revenues were roughly even in 2020 compared to 2019.