Arizona Small Business Owners: No on 204

NFIB steadfast in opposition to new, permanent sales tax increase

PHOENIX, Ariz., Oct. 3, 2012—The National Federation of Independent Business today reaffirmed its long-held and principled opposition to raising Arizona’s sales tax rate to one of the highest in the nation by joining forces with the campaign to defeat Proposition 204.

“Arizona needs jobs and new investment, not higher taxes that rob taxpayers’ purchasing power and depress retail sales,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business. “Proposition 204 is a cynical money grab by government unions and special interests that seeks to exploit Arizonans’ sincere support for closing the achievement gap in our K-12 education system.”

Proposition 204 is an Arizona ballot measure that would increase Arizona’s state sales tax rate by 18 percent when the current temporary one-cent sales tax expires in June 2013. Its passage will cement Arizona’s sales tax rate as the second highest in the nation behind Tennessee—a state, unlike Arizona, with no income tax.

“Proposition 204 earmarks and diverts more than a billion dollars a year to a series of unaccountable and failed bureaucracies that for good measure includes a $100 million taste for a rabble of favored special interests. The children are the last thing Proposition 204 is for,” Quinlan said. “It provides no accountability or no real reform and little of the money will go to teachers and into the classroom where it is needed most.”

NFIB, the state’s leading small business association with 7,500 Arizona members, has consistently opposed efforts to raise Arizona’s transaction privilege (or sales) tax rate during these recessionary times with high unemployment. In 2010, the organization established its principled stance against raising taxes during this recession by opposing passage of Proposition 100, the temporary tax increase set to expire on May 31, 2013.

“One of the main reasons NFIB’s members opposed Proposition100 was their since-vindicated fear that the temporary tax would be converted into a permanent tax. Sadly, Proposition 204 proves their fears were justified.” Quinlan concluded. 

NFIB joins a growing list of business organizations supporting the Vote NO on 204 campaign. Visit to learn more about Proposition 204.

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NFIB is the nation’s leading small-business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at


  1. The growing opposition to Prop 204 is encouraging, but blog postings and news articles will not get it done. The electorite, wearing their drool cups in front of the tube, are transfixed on pro-tax TV spots and easily convinced by anything they see on television. Unless opposition ads are run to counter the crapola being spewed over the air waves by the AEA, Arizona contractor associations, etc., there may be little chance of defeating the measure.

  2. NotBuyingTheBS says

    If lower taxes leads to jobs and new investment, why didn’t we see any growth during the 8 years of the Bush tax cuts? Why has there not been an explosion in jobs and new investment since GED Jan and the Tealiban Lege gutted education so they could give more tax breaks to corporations?

    If the NFIB were truly concerned about the state of education in Arizona, wouldn’t they have opposed those corporate tax cuts?

    What about the so-called accountability of virtual and charter schools? Why does the lege continue to throw money at a for-profit charter school system that is on academic probation for poor student achievement in (Google Craig Barrett and K-12, Inc)? The AZ lege has for years diverted money from public education to “vouchers” and “choice”. Yeah, quite a choice: go to a public school that is falling apart with books that are at least 10 years old, or go to a charter or virtual school that is little better than another way for corporations to steal tax payer money at the expense of our childrens’ and this country’s future.

    And “free enterprise” is a myth. If this country were truly a free enterprise system, then there would be no farm or enegy subsidies at all, no small business loans from the government, and no bailout of the banks, auto industry or mortgage companies in 2008-09. Corporations, banks, Wall St are all for taking wild risks when the economy is booming, and they’re the first in line looking for government to save them when the economy takes a dive. That’s not free enterprise, that’s a system that, as Romney said, “[is] dependent on government, who believe the government has a responsibility to care for them.”

  3. Tiny Elvis says

    Right on man, you Rage Against that Machine!


  1. […] Farrell Quinlan, Arizona state director for the National Federation of Independent Business has some strong words “Proposition 204 earmarks and diverts more than a billion dollars a year to a series of […]

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