Arizona House Republicans approved a new state budget on Apr. 29 that includes several tax relief measures for workers, families, and retirees. The budget eliminates state taxes on tips and overtime pay, expands relief for childcare expenses, increases the dependent tax credit, and provides additional tax benefits for retirees and pension income.
Supporters say the budget fully funds K-12 education, public safety, child protection, and other essential government responsibilities while rejecting proposals to raise taxes. The package was developed over several months by House and Senate Republicans after Governor Hobbs left negotiations in March.
Speaker of the House Steve Montenegro said, “House Republicans did the hard work and passed a serious budget that puts Arizona families first. At a time when affordability is front and center at kitchen tables across this state, Republicans are fighting to help Arizonans keep more of their own money. Governor Hobbs’ idea of affordability is raising taxes and growing government. Ours is cutting taxes, protecting core services, and giving workers, families, and retirees more breathing room. She walked away from negotiations, but Republicans kept working and passed a budget that spends hundreds of millions less than her plan while helping Arizonans keep more of what they earn.”
House Majority Leader Michael Carbone also commented on the legislation: “Families across Arizona are tightening their belts, and state government should do the same,” Carbone said. “This budget proves we can fund the priorities Arizonans count on without asking them to pay more. It delivers real tax relief, controls spending, and rejects the idea that government should grow while families are being squeezed. House Republicans are standing with taxpayers, workers, parents, and retirees who deserve a budget that treats their money with respect.”
Carbone was elected as a Republican to represent Arizona’s 25th House District in 2023 after replacing former representative Michelle Udall according to Ballotpedia.
The passage of this budget signals continued debate over fiscal policy in Arizona as lawmakers address affordability concerns among residents.
