Prop 132 Protects Arizonans from Economic Chaos

It should always be hard to increase taxes, especially when families and small businesses can least afford it. Today, inflation is at an all-time high, gas prices continue to soar, and basic goods and services cost more than ever. Simultaneously, interest rates are rising at an alarming rate as people see their retirement investments disappear in a tumultuous stock market. And it’s all caused by the economic malfeasance of out-of-control government spending.

In the midst of this fiscal chaos, out-of-state special interests continue to run ballot propositions designed to wreak havoc on Arizona’s already fragile economy. Consider 2020’s ironically titled “Invest in Ed” measure, Prop 208, which would have imposed the largest tax increase in our state’s history.

Proponents of Prop 208 spent nearly $25 million (an astonishing amount for a ballot measure in Arizona) in an effort to pass it into law. However, less than 1% of their funding came from individual Arizonans. Instead, most of it originated from special interests based in Portland and Washington, D.C.

The tax burden imposed by Prop 208 would have crippled our economy and given us the dubious distinction of having one of the highest tax rates in the Nation. Fortunately, the Goldwater Institute and our allies were able to defeat this job-killing measure in court, saving Arizona families and small businesses from unprecedented fiscal hardships.

Despite this victory, left-leaning organizations and donors who don’t reside in Arizona continue to target our taxpayers with California-style tax and spending schemes. Fortunately, we have a homegrown solution in Proposition 132, which helps prevent special interests from buying their way onto our ballot. Prop 132 simply requires a 60% majority vote before any tax increase can be approved at the ballot.

Arizona voters already enacted a constitutional amendment that requires a 2/3 majority vote to increase taxes at the Legislature. Prop 132 aligns the legislative and initiative processes, ensuring a higher bar is met in order to take money from the pockets of our taxpayers. It also promotes stability in our economy and encourages business investment without the constant threat of haphazard tax hikes being forced onto Arizona families.

Arizona is currently facing the highest inflation rate in the country. Coupled with an uncertain housing market and the diminished value of the dollar, we have an obligation protect our state’s future from out-of-state special interests who couldn’t care less about our economy. Prop 132 sends a clear message that Arizona’s tax code is not for sale.

On November 8th, please vote YES on Prop 132.

Goldwater Institute’s 2022 Know your Ballot guide is here! Learn more about Prop 132 and our positions on other ballot measures now.

Jenna Bentley is the Director of Government Affairs at the Goldwater Institute.