With Ciscomani as Advisor, Ducey Enacted Budget-Busting Tax Breaks

New Estimates: Ducey Tax Breaks Resulted in $400 Million Deficit

TUCSON — While Congressman Juan Ciscomani served as "a key member" of Doug Ducey's senior leadership staff, the then-governor enacted tax breaks that left the state $400 million in the hole.

Meanwhile, since being sworn into Congress in January, Ciscomani maintained Governor Ducey's same stance on taxes: massive tax giveaways for the wealthy and corporations while cutting services like housing, education, and health care for low- and middle-income Arizonans. During the recent government shutdown debate, he voted for a Republican-led bill that would have made devastating cuts to health care access, food assistance, support for small businesses, and other critical services.

According to the Arizona Mirror:

“When Arizona lawmakers passed a budget in June, they expected to have a $10 million surplus by the end of the fiscal year. But just a few months later, the state now forecasts a $400 million deficit. 

“That predicted deficit is driven by the state’s newly implemented flat income tax, a slowing in sales tax revenue and higher-than-expected spending on school vouchers.

“A major contributing factor to the decline is the full implementation of a flat income tax that GOP lawmakers and then-Gov. Doug Ducey championed. In January, the individual income tax rate was lowered to 2% from 2.7%, resulting in a 27% drop in income tax collections from the prior fiscal year. So far, that means $243 million less has been collected than was expected. 

“The tax cut was the result of a package approved by legislative Republicans and Ducey in 2021, which changed Arizona law from a graduated income tax rate to a flat tax. Budget analysts at the time estimated the cuts would cost the state about $1 billion in revenue from 2021 levels when they were fully implemented.”

"Just like Governor Ducey, Congressman Ciscomani puts the wealthy and corporations ahead of everyone else, rewarding those at the top with tax breaks while punishing everyone else by taking away their services," Honest Arizona Executive Director Andrea Moreno said. "It's time for Congressman Ciscomani to stop doing the bidding of the wealthiest Americans and worry about the hard-working people of Arizona."

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