Victory! We Beat the Arizona Obamacare Exchange!

AFP Arizona

Dear Arizona Taxpayer:

The Arizona chapter of Americans for Prosperity is grateful to Governor Jan Brewer for rejecting the state-funded ObamaCare/PPACA Exchange and thereby protecting Arizona businesses, taxpayers and health care consumers.  As Governor Brewer noted in her news release on the topic, a state-funded Exchange would be very expensive for Arizona taxpayers, and the federal government “would maintain control over virtually every aspect of our Exchange.”

AFP-Arizona is also grateful to all of the Arizona Legislators who stood their ground against the state-funded Exchange in the face of intense lobbying pressure from corporate interests that had been bought off by ObamaCare’s system of government mandates and subsidies.  Further, AFP-Arizona is grateful to its donors for supporting usthrough this long fight, and we are grateful for the policy advice afforded to us by members of our coalition, including the Goldwater Institute and the Cato Institute.  Finally, and most importantly, AFP-Arizona is grateful to the thousands of grassroots activists in Arizona who took action against the Arizona Exchange by writing emails, making phone calls, and confronting elected officials at public meetings — more than anything else, their activism won this battle.

The fight to contain and control the wide-ranging damage of the ObamaCare legislation is far from over, and AFP-Arizona is now ready to fight ObamaCare’s hugely expensive (but optional!) Medicaid expansion here in Arizona.  But it’s important to take the time to celebrate our victories, so we will soon send out an invitation for an upcoming Victory Party for all of the activists and elected officials who fought the ObamaCare exchange.  At the party, we will also celebrate the decisive victory of Arizona taxpayers over the Prop 204 sales tax hike on the November 6 ballot.

And on the topic of Prop 204, AFP-Arizona wishes to express our deep gratitude to Governor Brewer for taking a firm stance against the permanent one-cent sales tax hike.  Governor Brewer promised Arizonans in 2010 that her intention was for the Prop 100 sales tax hike to be a temporary expedient, and she kept her promise.

For Liberty,

Tom Jenney
Arizona Director
Americans for Prosperity


  1. No comment about Tom Jenney’s puffery here, other than to say the deciding factor for voting against Prop 116 was because of Tom Jenney’s support for it in the Arizona voter guide (and I at least influenced 3 other people to vote the same way).

    If Tom Jenney is for it, it’s bad for actual workers in Arizona.

    • The net effect of Prop 116 is to shift property taxes from workers to Arizona residential property owners. Since investors can move their capital from one state to another, they need the same return on investment regardless of the state they invest in. In order for that to happen when there is a higher tax on capital, the pay for workers has to be reduced since prices for the products can’t be raised in a competitive market. With some of the capital equipment not being taxed, the after tax return will go up. This will bring more capital into Arizona which will increase the demand for labor and cause increases in wages and salaries.

      Even though workers do not directly pay property taxes on their wages and salaries, they effectively are paying the bulk of their employers’ property taxes through lower wages than would be paid if the taxes are lower. At first, this property tax reduction will primarily benefit the owners of businesses, but it will benefit the workers in a few years once wages and profits start adapting to the new tax structure.

      So, this will eventually benefit the workers of Arizona. However, residential property tax payers will pay more. This will hurt retirees the most since they are not benefiting from the increase in wages to offset their property tax increases. On the other hand, a healthier economy will tend to raise property values for everyone, so even those paying higher taxes to pay for the reduction in business taxes may still be net gainers from this proposition.

      Regarding the Health Care Exchange, the less the state is involved, the better. States will be so closely regulated that there will be no benefit to supposedly having more local control by using a state run exchange instead of the federal exchange.

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