GPEC statement on proposed flat state income tax
Over the last several years, Greater Phoenix has been a top market in the United States for Gross Domestic Product, personal income and quality job growth. We stand in full support of our community partners across the region to ensure they have the requisite funding to continue propelling Greater Phoenix into an innovation-centered economy.
The proposed flat tax will have a substantial impact in lost revenue to Arizona cities and towns. It is estimated that Arizona communities may experience $230 million in annual losses to state shared revenue. Revenues collected by cities and towns in Greater Phoenix, and across the state, are indispensable. These funds allow municipalities to provide essential services while stimulating economic growth and providing opportunity to residents. These losses will negatively impact future infrastructure projects and enhancements that improve quality of life, which play critical roles in the ability to attract investment and new resident inflows.
As a leading public-private partnership, the Greater Phoenix Economic Council (GPEC) would like to see our communities held harmless from the state income tax cut plan.