WHAT TO KNOW: ARIZONA AND THE BUILD BACK BETTER ACT

POLL: 55% of Arizona Voters — And a Majority of Independents — Supporting Raising the Corporate Tax Rate to Fund the Build Back Better Act 

Build Back Better Act Would Save the Average Arizona Family Nearly $7,000 in Child Care Costs; Create at Least 70,000 Jobs in Arizona; Cut Taxes for Nearly 400,000 Arizona Workers, and More 

Congress is currently negotiating the Build Back Better Act, a once-in-a-generation investment in child care, paid leave, affordable education, affordable housing, and much more. The plan rewards work, not wealth by making the wealthy and big corporations pay their fair share in taxes — which is hugely popular with Arizonans. 

 

Arizonans want the Build Back Better Act to reward work, not wealth: 

A poll conducted by ALG Research for Invest in America found incredibly strong support from likely 2022 voters in Arizona for the Build Back Better Act and its pay-fors: 

  • 55% of Arizona voters — including 50% of Independents — support raising the corporate tax rate to support the Build Back Better Act’s investments. 
  • 58% of Arizona voters — including 55% of Independents — say that corporations and the wealthiest do not pay enough in taxes. 
  • 59% of Arizona voters — including 57% of Independents — support raising income taxes on Americans earning more than $400,000 per year. 
  • 81% of Arizona voters support eliminating tax loopholes that encourage outsourcing and 84% support cracking down on tax fraud. 

 

Here’s how the investments in the Build Back Better Act would benefit Arizonans: 

Housing 

  • Arizona desperately needs federal investments that lower housing costs for Arizona families. 
      • Arizona rental prices have increased 60% in the past ten years.
      • This year rents are expected to continue to rise faster in Phoenix than in any other major U.S metro area.
      • For every 100 extremely low-income renter households there are only 26 units of affordable and available housing.
      • Arizona is in the midst of an affordable housing crisis with rental rates outpacing the national average; renters make up 35% of all households in the state.
      • As of this year, Arizona faces an affordable housing shortage of up to 160,488 homes.
      • Arizonans would have to earn $22.30 an hour to afford a 2-bedroom rental home in Arizona at fair market rent. The current minimum wage in Arizona is $12.15, meaning workers would need to work 1.8 full-time jobs to afford a 2-bedroom rental home, or 1.5 full time jobs to afford a 1-bedroom rental home. 
  • The Build Back Better agenda will deliver historic investments in housing that will lower costs for hardworking Arizonans. 
    • The Build Back Better agenda’s investments in affordable housing programs could help create well-over 7,000 good-paying jobs in Arizona the first year while generating millions in local revenue. 
    • President Biden’s Build Back Better agenda invests $40 billion to build or rehabilitate affordable rental housing units across the country and bolster funding for programs that will lower housing costs for very- and extremely-low income renters.
    • The agenda includes $20 billion in innovative tax credits which will generate construction and rehabilitation of homes for low- and middle-income buyers across the country.
    • The National Low Income Housing Coalition estimates that constructing 100 affordable rental homes generates $11.7 million in local income, $2.2 million in taxes and other revenue for local governments, and 161 local jobs in the first year alone.
    • The Build Back Better agenda will construct or rehabilitate over 1 million affordable rental housing units nationally by expanding federal subsidies for very- and extremely-low income renters. 

 

Affordable Higher Education 

Arizonans would benefit from significant investments in community college. 

The Build Back Better agenda would: 

  • Provide two years of free community college to Arizonans
  • Make college more affordable for low- and middle-income students at Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and institutions such as Hispanic-serving institutions, Asian American and Native American Pacific Islander-serving institutions, and other minority-serving institutions (MSIs)
  • Increase the maximum Pell Grant to help all eligible low-income students pay for a two- or four-year degree

Free community college pays for itself while increasing enrollment and degree completions. 

 

Tax Cuts for Families 

The Build Back Better agenda would: 

  • Extend the Child Tax Credit.
      • Over 1.3 million children in Arizona qualified for expanded Child Tax Credit payments; the average payment per household was $444 per month.
      • Arizonans could see on average an over $3,400 tax cut per tax filer just from extending the expanded Child Tax Credit.
  • Permanently Extend Expanded Child and Dependent Care Tax Credit.
      • Working Arizona families would be permanently eligible for a fully refundable tax credit of up to $8,000 for one child or $16,000 for two or more to help cover child care expenses.
      • Arizonans could see on average an over $540 tax cut per tax filer just from making expanded Child and Dependent Care Tax Credits permanent.
  • Make the Earned Income Tax Credit Permanent.
    • 385,200 Arizona workers qualified for expanded Earned Income tax Credits to help make ends meet, with the maximum credit totaling $1,502
    • Arizonans could see on average an over $1,000 tax cut per tax filer only from making the expanded Earned Income Tax Credit permanent.

 

Affordable Care: 

  • Arizona desperately needs the Build Back Better agenda’s historic investments, which will lower the cost of child care for working families.

 

  • The Build Back agenda will make life more affordable for middle-class Arizonans by lowering the cost of healthcare and prescription drugs.
    • Americans pay 2-3 times more for their prescription drugs than people in other wealthy countries.
    • According to a 2017 survey, 26% of Arizonans reported that they stopped taking a medication due to the cost.
    • Polling from 2018 shows that 80% of Arizona voters are concerned about the cost of prescription drugs and 50% are “very concerned.”
    • The Build Back Better agenda will lower prescription drug costs for Americans by allowing Medicare to negotiate drug prices.
    • By reducing health insurance premiums, the Build Back Better agenda will save 9 million people an average of $50 per person per month, and add dental, vision, and hearing coverage to Medicare. 
    • By closing the Medicaid gap for low-income Americans, the President’s plan would help 4 million uninsured people gain health care coverage. 

 

  • The Build Back agenda will increase access to affordable home and community-based care services for Arizona’s elderly and people with disabilities. 
    • Arizona has more than 1.5 million residents over the age of 60, which is 22% of the population and growing.
    • 17 of the nation’s worst-rated nursing homes are in Arizona. 
    • MoneyRates rated Arizona’s health care quality in critical condition, the lowest ranking on the scale in adequate nursing home staff. 
    • By 2030 there will be as many people over 60 years of age living in Arizona as there are children under the age of 17.
    • Currently, 53 million American family members provide most of the care that vulnerable seniors and people with disabilities require — without being paid and often at a significant financial and emotional cost.
    • The private insurance market is shrinking, unable to cope with the high cost of care toward the end of life: It is too expensive for most Americans, and it is too risky for most insurers. As a result, middle-class Americans who need long-term care either fall back on relatives — typically daughters, knocking millions of women out of the labor force — or deplete their resources until they qualify for Medicaid.”

 

Clean Energy: 

  • The Build Back Better agenda will strengthen Arizona’s economy.  

 

  • Arizona’s families will benefit from the Build Back Better agenda’s investments in clean energy. 
      • The proposal would extend and expand the definition of clean energy tax credits to help cover 30% of the energy efficiency modernization costs for Arizona homes.
      • Transitioning to clean renewable energy could prevent 52,000 premature deaths annually and save $167 billion in health costs over 35 years in the United States. 
      • The Build Back Better agenda will put the country on a path towards 100% carbon-free electricity by 2035 and will also help the United States achieve its goal of reducing air pollution by 50%.
  • Arizona voters want investments in clean energy jobs. 
  • Arizona is ripe for investment in clean energy jobs. 
    • Currently, only 14% of Arizona’s total energy output comes from renewable energy sources.
    • Arizona ranks second in the nation in solar energy potential after Nevada and fourth in net generation from solar after California, Texas, and North Carolina.
    • Arizona has immense solar potential: Yuma, Phoenix, and Tucson are three of the top five sunniest cities in the United States.