According to a joint report by Arizona’s Common Sense Institute (CSI) and the Arizona Chamber Foundation, Arizona’s business environment could have been significantly less competitive had multiple legislative proposals passed this year.
The study examined 67 proposed bills from the 2023 session, dubbed “job-killing” legislation, for their potential negative impact on employment. If passed, these proposals could have caused a $9.5 billion setback to Arizona’s economy and the loss of about 114,000 jobs.
Among those proposals were over a dozen bills that did not pass in Arizona but did pass in neighboring Colorado. The study also highlighted that these bills could have imposed over $25 billion in new costs annually on businesses operating in Arizona, including an estimated $15 billion in additional taxes and fees.
Major legislative proposals included ten bills raising taxes and one aimed at repealing Arizona’s status as a right-to-work state that makes union membership voluntary.
The tax increase laws alone, if passed, could have resulted in an additional $15 billion in new taxes. It was estimated that the proposed repeal of the Right to Work Act would cost Arizona an additional $18.6 billion.
The report also included a comparison between Arizona and Colorado employment trends since 2019, taking into account the impact of the COVID-19 pandemic. According to the study, had Arizona followed Colorado’s example, it would have struggled today with 113,500 fewer workers and its economy would have shrunk 2.6% — a loss of $9.5 billion in GDP.
Katie Ratlief, executive director of CSI Arizona, said the report will inform lawmakers from both parties about the possible consequences of their proposals.
“Policymakers and the public should be informed about the short- and long-term implications of these laws so they can weigh the pros and cons and make informed decisions,” she said.
Danny Seiden, president and CEO of the Arizona Chamber of Commerce & Industry and CSI board member, said the report should feed into future legislation.
“This analysis provides important data points for lawmakers to consider, as these failed bills are likely to reappear in future sessions,” Seiden said. The study underscores the importance of continued legislative scrutiny and careful decision-making to maintain the health of Arizona’s economy. Although these legislative proposals were not adopted, they illustrate the potential for rapid political change and the profound economic impact such change could have.
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