SB1318 and SCR1014 are twin bad ideas.  An SB- senate bill - cannot become law unless the governor signs it.   An SCR - senate concurrent resolution - goes to the ballot if it passes the AZ State Senate and the AZ State House.  An SCR is a way to avoid the governor's veto stamp. 

Both of these bills  would automatically ratchet down revenue, without looking at what state services and programs are unfunded, under funded or are getting cut, EVERY YEAR.

Read on for more details ... 

SB1318  and SCR1014 would automatically cut revenue every year. 

Making automatic cuts every year is irresponsible budgeting.

This is a version of the "TABOR" scheme that Colorado currently uses, and it causes
great harm to the people. Like a zombie, it keeps coming back in Arizona, and year
after year, sensible people say, "NO. NO. NO. NO!"

This bill is another way for billionaires to NOT pay what they owe for the public roads
and public education that provided their profits.   

Our schools and roads need funding, and our workforce needs support for
quality childcare. Invest in kids, safety, and workers, not billionaires! 

Cuts to tax rates every year would likely mean cuts to education every year.   

On the other hand, 

Cuts to income tax are cuts that help the richest few and everybody else pays more. 

How can that be? ???  

In Arizona, the sales tax rate is the high rate,  and the richest few do not pay it.  But the lowest income earners pay a large part of their income in sales tax.  

In Arizona: 

Billy the billionaire pays income tax,  so AZleg sets a Low income tax rate.

Tina the teacher pays sales tax,  so AZLeg sets a High sales tax rate.  

Sales tax is the tax that everybody pays, often every day.  In Arizona, it is the highest rate of tax we pay,  and Arizona's sales tax rate is higher than most other states,  year after year.  

Generally, people with high income do not pay very much of their income in sales tax for many reasons:

• Very little of Billy's income is subject to sales tax.  Very rich people have so much income that they cannot spend a big part of it.  They have lots left over each month.  Contrast that to people with median wages or low wages,  living paycheck to paycheck who spend nearly all of their income, making nearly all of their income subject to sales tax.  
• Very rich people spend more of their income on services, than on tangible goods.  Generally, there is no sales tax on services.   But typical workers in Arizona spend their income on goods that are taxed, less on services. 

1- Arizona has a High Sales Tax rate.   Combined state and local overall rate is 8.41%, ranking AZ at 11th highest sales tax rate,  just outside of the top ten worst.  

Sales tax - paid by many - is a high rate.

For every $100 of income:  

• Billy the Billionaire pays only $1.65  in sales taxes.
• Tina the Teacher pays $6.19  in sales taxes.  

In sales tax, typical Arizonans (Tina) making median wages pay almost 4 times the rate of the richest few!! 

2- AZ income tax - paid mostly by higher-income individuals -- is a low rate.

For every $100 of income:  

• Billy the Billionaire pays only $1.77  in income taxes.
• Tina the Teacher pays $1.17  in income taxes.   

If the sales tax were cut in half,  Tina would benefit over $3 on every $100 she makes.

But if the income tax were cut in half,  Tina would only benefit about 55 cents. 

Billy's benefit is   0.89 / (1.77 + 1.65) = 26%  Cut in sales and income taxes.

Tina's benefit is    0.55  / (1.17 + 6.19)  =  7% cut in sales and income taxes.  

By cutting the income tax in half,  the billionaire gets a 26% cut and Tina the teacher gets only a 7% cut in taxes paid. 

ALSO -- Tina is very likely to get a CUT a much worse result in her pay.  Teachers' pay in Arizona has not even kept up with inflation.   Cutting overall revenue will mean even LOWER purchasing power for Arizona's educators.  

3- In Arizona, income tax is about the only tax that zillionaires do pay. 

When politicians cut the income tax,  they are kowtowing to the zillionaires, the elitists.  

For Arizona state and local taxes  (income + sales + property) the results are regressive, largely because our sales tax rate is high and our income tax rate is low. 

See the TaxFoundation.org for a right-leaning explanation, and  ITEP.org  for a left-leaning explanation.