Legislative Democrats respond to Governor Hobbs Executive Order Calling for Middle and Working-Class Tax Relief

PHOENIX – Today, Governor Katie Hobbs issued an executive order directing the Arizona Department of Revenue to print tax forms that reflect an increased standard deduction and a new Arizona tax relief package for working families and middle-class earners. Those tax cuts include: no tax on tips, no tax on overtime, no tax on new car loan interest, and a $6,000 senior deduction. Legislative Democrats released the following statement:

Senate Democratic Leader Senator Priya Sundareshan (LD18) said, “The Republican federal budget bill continues to have devastating impacts on state budgets, Arizona included. On top of that, Donald Trump’s tariffs have amounted to one of the largest tax increases in American history, raising the cost of groceries, clothing, and other items that Americans need to survive.

Governor Hobbs' directive today proposes new tax cuts intended to support middle class Arizonans during a time when Republicans at the federal level have increased costs on all Americans.

At the same time, decades of Republican tax cuts in Arizona have benefitted billionaires and corporations while underfunding necessary public functions and have led to $1 billion annually lost to private school vouchers.

Senate Democrats welcome the upcoming discussions on how to reduce costs for working class Arizonans without harming the funding they rely on for public education, healthcare, and more.”

House Democratic Leader Representative Oscar De Los Santos (LD11) said, “While Republican politicians cause price hikes and healthcare cuts, Democrats are stepping up with real solutions to make life affordable for everyday Arizona families.

Today Governor Hobbs released a middle-class tax package that cuts taxes for seniors on fixed incomes, boosts affordability for workers by letting them keep more of their overtime pay, and eliminates taxes on tips.

House Democrats are ready to deliver this tax relief — and we will ensure it’s done responsibly and not paid for with cuts to services for working families or the middle class. We will not gut healthcare. We will not slash public education.

If Republicans want to protect the powerful special interests instead of the people, they can do it alone — Democrats are here to fight for Arizona’s working and middle-class families every single day.”

Senate Finance Committee Ranking Member Senator Mitzi Epstein (LD12) said, “Arizonans who are struggling deserve help. Arizona Legislative Democrats are committed to providing real help, not just sound bites. Republicans in Congress pushed HR1 to give benefits to billionaires and add $4 trillion of debt in the next decade. At the state level we cannot do that; it’s irresponsible. New tax cuts will be costly, and we are tasked with paying for them. Every tax cut to one group is a tax increase to another group. Legislative Democrats are committed to fighting for fairness that uplifts working families and I believe we can negotiate a plan with the Governor that does not come at the expense of those families.”

House Ways and Means Ranking Member Representative Seth Blattman (LD9) said, “Republican policies have driven up costs for all Arizonans and affordability is the number one concern of every person I talk to. These middle and working-class tax cuts take real steps toward addressing the affordability crisis for working families. As long as we don’t cut education, healthcare, or other vital services to pay for them, I am cautiously optimistic that this plan can work and make a difference for the people we represent.”