If approved, this law would impose a 3.5% surcharge on taxable annual income over $250,000 for single persons filing separately, or $500,000 for married persons filing jointly, to increase funding for public education.
Supporter website: Invest In Ed
"For the past few years, Arizona’s business leaders have consistently said that increased funding for Arizona’s public schools is critical to produce the skilled workforce Arizona needs for a strong economic future. The Invest in Ed ballot initiative will provide the strategic investments Arizona needs in it’s public schools to attract new businesses and jobs to our state and boost long-term economic growth, and that is a pro-business strategy. ... When passed, the top 1 percent of earners in Arizona – the ones who will be subject to this surcharge – will still pay a lower effective tax rate than 25 other states and lower state income taxes than the national average. Any income they earn below those accounts will be taxed under Arizona’s current income tax brackets, which we are not changing, and which are the fourth lowest in the nation. If Invest in Ed passes, the effective tax rate for the top 1 percent of earners in Arizona will be 4.4 percent. The average effective tax rate for the top 1 percent nationally is 4.6 percent. And most importantly, Arizona’s public schools will have $940 million in new, annual, permanent funding to educate our students."David Lujan, director of the Arizona Center for Economic Progress
Opposition website: No on Prop 208
"We believe a well-educated workforce is essential to the livelihood of Arizona. However, implementing a funding mechanism that singles out a small sliver of taxpayers will have a negative, long-lasting effect on small businesses. Reinforcing the economic recovery post-COVID-19, will benefit our public education systems in the long run."Suzanne Kinney, CEO, Commercial Real Estate Development Association, Arizona Chapter