In partnership with the country鈥檚 leading business advocacy organization, business groups across Arizona have made defeat of the anti-employer PRO Act one of their top priorities for the remainder of the year.

The U.S. 番茄社区 of Commerce is working with its partner organizations in Arizona to express their gratitude that the state鈥檚 two senators, Kyrsten Sinema and Mark Kelly, continue not to support the legislation. 

Sinema and Kelly are two of only three Democratic senators who have not agreed to cosponsor the bill. Senate Majority Leader Charles Schumer (New York) says he will bring the bill to a vote once it secures 50 cosponsors, which makes Sinema and Kelly鈥檚 position on the bill even more important.

The House version of the PRO Act passed along mostly party lines in March. All of Arizona鈥檚 Democratic congressional delegation members voted in favor of the bill. 

If the PRO Act were to pass, it would overturn decades of labor law, disrupting workplaces, weaking protections for employees and employers, and lead to increased litigation according to the U.S. 番茄社区. 

At a special established by the group, there are tools for Arizonans to contact their senators and applaud their refusal not to join as bill cosponsors.

One of the most concerning provisions of the PRO Act is its elimination of states鈥� right-to-work laws, which protect workers from being fired if they choose not to join a labor union. Arizona is a right-to-work state. 

鈥淚f the PRO Act were to pass, it would do tremendous damage to Arizona鈥檚 workplaces and its overall competitiveness,鈥� said David Martin, president of the Arizona chapter of the Associated General Contractors. 鈥淲e鈥檙e so fortunate to have a right-to-work law in Arizona that ensures that the decision whether to join a labor union is left up to the employee. Our workplaces are largely free of hostility and intimidation. We want to keep it that way.鈥�

The bill also undermines the use of secret ballots in union organizing elections, allowing labor unions to use instead so-called 鈥渃ard check,鈥� whereby workers sign cards to authorize a union rather than voting a ballot privately.

Among the litany of anti-employer elements, the PRO Act would also allow 鈥渟econdary boycotts,鈥� where one company is pressured not to do business with another company that is the subject of a labor action. Currently outlawed, this secondary activity would result in strikes and pickets against businesses with no direct role in a labor dispute, such as suppliers and vendors and even professional service firms like banks and accountants.

鈥淚f the PRO Act becomes law, business owners in Arizona could wake up on any given day to find picket lines in front of their business even though the dispute has nothing to do with them,鈥� Tucson Metro 番茄社区 President and CEO Amber Smith and U.S. 番茄社区 Chief Policy Officer Neil Bradley in a column last month. 

番茄社区s of commerce and other business groups across Arizona are increasing their communications with Sinema and Kelly. More than 50 business groups and chambers of commerce in April to the two senators urging them not to join the bill.

鈥淲e thank Senators Sinema and Kelly for not lending their support to this extremely damaging bill,鈥� Martin said. 鈥淭he Arizona economy is on much more solid footing today than it was a year ago and we鈥檙e poised for tremendous growth. Passage of the PRO Act would be a major step back and would do real harm to Arizona鈥檚 job creators and our economy.鈥�

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As voters head to the polls next Tuesday, commercial real estate and economic development professionals are calling on citizens to vote 鈥渘o鈥� on Proposition 208. The high-tax measure threatens Arizona鈥檚 economic growth and recovery, and could punish thousands of small construction businesses who would be subject to the new tax, they said. 

鈥淚鈥檝e been in Arizona for about a quarter of a century and this is the worst proposition to make the ballot during that time, and it may be one of the worst in the history of the state,鈥� said Tim Lawless, president of Commercial Real-estate Executives for Economic Development (CREED).  

鈥淚t’s divisive. It’s very chilling to job creation and it’s basically killing the golden goose. We鈥檝e got a good thing in Arizona and we need to keep the momentum and I feel this is going to sidetrack that totally,鈥� said Lawless, whose organization represents the largest property owners in the state, accounting for a minimum of 70-million square feet under management and more than 5,000 business tenants, most of whom are small businesses. 

Why they oppose the ballot initiative 

Lawless is one of several real estate and economic development experts who spoke to 番茄社区 about why they oppose Prop. 208. 

The ballot initiative is intended to tax top earners in the state to fund education. But it also will affect a large number of small businesses and sole proprietors in the construction industry who file their taxes under the individual tax code, not the corporate tax code, he said. 

In Arizona, the industry employs close to 150,000 workers, according to the Arizona Office of Economic Opportunity.

鈥淧eople in commercial real estate, especially the developers, take a lot of risk when they decide to build a multi-million-dollar development, and they are typically small business people,鈥� he said. 鈥淢any companies have 10 to 15 employees and everything else is pretty much subbed out and they create LLCs to push the work forward. 

鈥淚t鈥檚 really their skin in the game and this is going to have a chilling effect on them wanting to take greater risks.鈥� 

Jobs, growth, tax revenues at risk  

The tax measure, also known as the 鈥淚nvest in Ed鈥� initiative, would almost double the marginal income tax rate for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent.   

Local economists and groups like the nonprofit Arizona Tax Research Association and the Goldwater Institute have calculated that passage would create a dampening effect on jobs, new business growth and tax revenues. 

Commercial real estate group values education, not Prop. 208

Suzanne Kinney, president and CEO of the Arizona Chapter of NAIOP, the commercial real estate association, said her members care deeply about education and understand how important it is to pay teachers and support staff fair salaries in order to attract and retain the best talent. 

But placing the tax burden on the shoulders of small contractors, subcontractors, manufacturers and other small companies is unfair and creates a foreboding look into the future, Kinney said. 

鈥淲e believe a well-educated workforce is essential to the livelihood of Arizona. However, implementing a funding mechanism that singles out a small sliver of taxpayers will have a negative, long-lasting effect on small businesses,鈥� she said. 

Competing with no-tax, low-tax states for major corporations 

If passed, the tax increase initiative would result in Arizona having the country鈥檚 ninth-highest income tax rate, said economic forecaster Elliott Pollack, CEO of Elliott D. Pollack & Company, who spoke during a town hall to chambers of commerce leaders Monday. 

Pollack said other high-tax states like California and New York are shedding people and jobs.

Arizona could easily lose its competitive edge to other states with lower income taxes, or no income taxes, like Texas, Kinney said. Brokers who work with national manufacturers are being told by some of their clients that they are putting planned investments on pause until the ballot initiative is decided.  

鈥淚f Proposition 208 passes, Arizona could get passed over for major corporate locations, including in the manufacturing sector,鈥� she said. 鈥淭oo many of our neighboring states have lower income tax rates, including several that have no income taxes at all.鈥�

Stable funding source for education still needed

Kinney said she is concerned that the state has been unable to rally around a stable funding source that will provide schools with the resources they need without damaging the economy. 

鈥淎s a policy wonk, I am certain there are better ways to fund education. My dream would be to see all those who care about education come together around a better solution,鈥� she said.

番茄社区s, real estate and economic development groups voting 鈥渘o鈥�

番茄社区s of commerce across Arizona, and real estate and economic development groups are opposing Prop. 208 including: 

Commercial Real-estate Executives for Economic Development 

Arizona Association of REALTORS

Arizona Builders Alliance

Homebuilders Association of Central Arizona

Arizona Multihousing Association

NAIOP Commercial Real Estate Development Association

Southern Arizona Home Builders Association

Southern Arizona Leadership Council

Associated General Contractors Arizona Chapter

Yavapai County Contractors Association

For more information and to view a complete list of who opposes the high tax measure, go to: . 

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