On Tuesday, Congressman Andy Biggs announced that if he becomes governor, he plans to abolish the income tax, claiming that this move would actually boost the state’s tax revenue.
Biggs has long pushed for a gradual phase-out of the income tax, which currently makes up roughly 33% of the state’s budget, or about $5.7 billion, according to data from the Joint Legislative Budget Committee.
Opponents of his proposal argue that eliminating the income tax would likely require raising other taxes to fill the budget gaps or necessitate cuts to state services.
However, Biggs insists that neither of these outcomes would occur.
“I firmly believe that as we manage this process and gradually reduce the tax, you will see an increase in economic activity that will result in higher tax revenue for the state,” he stated.
Additionally, he mentioned plans to eliminate waste, fraud, and abuse within state government, which he claims would further compensate for the loss of income tax revenue.
Biggs pointed to the federal Tax Cuts and Jobs Act of 2017, which lowered income tax rates, arguing that it wasn’t the cause of increased federal deficits, but rather the lack of spending cuts contributed to that rise.
He noted that the federal spending bill, HR 1, has generated “record tax revenue” even though it included tax cuts, although the overall federal deficit is expected to rise since the implementation of HR 1.
During his remarks on Tuesday, Biggs outlined a broader agenda of actions he plans to undertake in the first 100 days of his governorship.
His fiscal plans also involve eliminating tax incentives for data centers and revising the state’s universal private school voucher program to provide more support to certain students.
Bigg’s ESA plans
In a debate last month, Biggs expressed a desire to “expand” the state’s universal Empowerment Scholarship Account (ESA) program, though he didn’t share specific details at the time.
On Tuesday, he clarified that he aims to adjust the ESA program to ensure students from “economically disadvantaged” areas receive more funding.
“Claiming you have school choice while denying it to many is misleading. We believe there’s a way to increase ESA funding to help underserved children access choices,” Biggs remarked.
He specifically referenced students in rural areas and those in the inner city who may have limited school options.
In Arizona, ESA funding is allocated based on various factors, including the student’s grade level and any disabilities they may have, leading to a wide range of potential financial support.
The Arizona Department of Education’s ESA funding chart for the 2025-26 school year indicates that a kindergartner without disabilities would receive approximately $4,700, while a student with multiple disabilities could qualify for upwards of $47,700.
The state expanded its universal ESA program in 2022 under former Governor Doug Ducey, and the initiative now serves over 106,000 students.
Incumbent Governor Katie Hobbs has opposed this expansion and has aimed to restrict the program during her time in office.
