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Governor Katie Hobbs Joins Leaders Sundareshan and De Los Santos to Introduce Middle Class Tax Cuts Legislation

Phoenix, AZ – Today, Governor Katie Hobbs joined Democratic Senate Leader Priya Sundareshan and Democratic House Leader Oscar De Los Santos to introduce the Middle Class Tax Cuts bill that puts more money in Arizonans’ pockets. The legislation raises the standard deduction that 88% of Arizona tax filers use, ends taxes on overtime pay and tips, and increases financial relief for seniors. 

“Middle class Arizonans need a tax cut now,” said Governor Katie Hobbs. “I told the legislature to send me the Middle Class Tax Cuts Package at the beginning of session to deliver tax cuts for seniors struggling to get by, servers relying on tips to put food on the table, firefighters working overtime to protect their communities, and the 88% of income tax filers who take the standard deduction. 

“I made clear what bill I would sign: one that cuts taxes for the middle class. Instead of working with me to put the middle class first, the Republican majority has chosen to engage in political theater and sent me a partisan bill. It’s a bill that puts billionaires and special interests first. It hikes taxes on working seniors. And they have no plan to pay for it. Their actions are the height of irresponsible and reckless budgeting.

“Let me send a clear message to the Legislature: If you want to lower taxes for the middle class, then pass these Middle Class Tax Cuts now.”

“SB1106 is not tax relief, it’s a rushed, unbalanced bill that benefits the wealthy while putting schools, healthcare, and working families at risk,” said Senate Democratic Leader Priya Sundareshan. “Senate Democrats voted no because Arizona deserves better, and we’re ready to work on real, bipartisan tax relief that actually helps everyday Arizonans.” 

“Yesterday, Republicans forced through an irresponsible bill that would have given large corporations hundreds of millions of dollars in special tax breaks,” said House Democratic Leader Oscar De Los Santos. “Governor Hobbs isn’t afraid to stand up to special interests, and I’m proud she has vetoed this reckless handout to big corporations. Make no mistake: Democrats are fighting for an Arizona We Can Afford. That’s why we support tax relief for working and middle-class families. And that’s why I introduced House Bill 2531: Governor Hobbs’s Middle Class Tax Cut Package, which raises the standard deduction, lets everyday Arizonans keep more of what they earn from tips and overtime, and gives seniors an additional $6,000 deduction. Republicans should give it an immediate hearing, pass it in both chambers and get it to the Governor’s desk.”

In her State of the State address, Governor Hobbs called on the legislature to “immediately” put the Middle Class Tax Cuts Package on her desk (as introduced in House Bill 2531 and Senate Bill 1203). Instead, Republicans sent her a bill that gives a tax break to special interests and raises taxes on working seniors. Today, Governor Hobbs vetoed this partisan legislation.

Read Governor Hobbs’ veto letter here.

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