A group of Small Business Owners have filed paperwork to oppose the recently filed ballot measure that would dramatically increase income taxes on small employers. The proposed “Invest in Education” initiative would impose a new income tax bracket of 9 percent, a near doubling of Arizona’s existing income tax rate. The new tax would give Arizona the 5th highest income tax in the nation.
“Doubling Arizona’s income tax rate would be devastating to small business owners and will drive many to either leave the state or go out of business,” said Ron Elwood, Chairman of the Small Business Owners Against I-17-2018 and owner of CFO for My Business. “It will directly impact our ability to expand, create jobs or make investments in the future. I’m not sure why the labor unions pushing this initiative decided to target small business owners in order to generate more tax revenue for schools.”
Jennifer Henricks, treasurer of Small Business Owners Against I-17-2018 and owner of Tees & More, believes the measure will divide our state rather than bring it together. “I don’t think anyone is against more funding for K-12, but increasing the tax burden on small businesses is the wrong way to do it.” Jennifer said. “Also, since the ballot measure only increased individual tax rates, small businesses will have to pay the new tax, but corporations won’t. How is that fair?”
Small Business Owners Against I-17-2018 will begin as a grassroots effort to educate voters on the damage the Invest in Education initiative will inflict on entrepreneurs, employers and Arizona’s economy. Some of the key issues that will be addressed in the campaign include:
- How doubling Arizona’s income tax will disproportionately affect Small Business Owners in Arizona
- Why Arizona will be at a competitive disadvantage if it has the 5th highest income tax in the country
- Why new investment and jobs will go to other states like Nevada or Texas if this initiative passes.
- How the measure will eventually lead to tax increases for all income taxpayers
“Our goal is to make sure voters are fully informed about the dangers of this initiative if it does reach the ballot,” said Ron Elwood. “We know that fighting this initiative will be an uphill battle, but we believe that the issue is too important to stay on the sidelines.”