Oppose HB2288: Corporate Tax Break for Foreign Dividends

I urge you to oppose HB2288 in the House Ways and Means Committee hearing this Wednesday. This bill would increase the income tax deduction for corporations receiving foreign dividends, creating yet another tax break that Arizona cannot afford. Arizona's budget is already strained from years of persistent tax cuts. Our state faces critical funding shortages for education, infrastructure, and essential services that directly impact constituents. Creating a new corporate tax deduction for foreign dividends will further erode our revenue base at a time when we should be investing in Arizona communities, not subsidizing overseas investments. This bill raises a fundamental question of priorities. Why should Arizona taxpayers subsidize corporations that choose to invest their profits abroad rather than in our state? When corporations receive dividends from foreign investments, they are already benefiting from those overseas ventures. Giving them an additional tax break for doing so makes no economic sense for Arizona. Representative Olson's HB2288 would amend Arizona Revised Statutes Chapter 43, Article 1122 to expand these deductions. The bill provides no explanation of how the state will replace the lost revenue or which programs will be cut to compensate. Will it be schools? Roads? Public safety? Arizona families deserve to know what they will lose so that corporations can pay less on their foreign investment income. Our tax policy should encourage investment in Arizona jobs, Arizona infrastructure, and Arizona communities. HB2288 does the opposite by rewarding corporations for moving capital overseas. This is poor fiscal policy that will harm state revenues without providing any demonstrable benefit to Arizona residents. I ask you to vote no on HB2288 in Wednesday's committee hearing. Arizona needs tax policy that strengthens our revenue base and supports our communities, not giveaways to corporations for their foreign investments.