Jay Feely, Republican congressional candidate for Arizona’s 5th Congressional district, said Democrats rejected a $1.1 billion state tax plan that would have exempted tips, overtime and Social Security income, while providing deductions for workers and seniors.
“If Democrats truly care about the average working American. Why are they continually fighting against Donald Trump’s no tax on tips, overtime and social security income,” said Feely.
According to Feely’s post on X, the Arizona Senate Republicans announced the passage of a $1.1 billion tax relief package that was opposed by all Democrats. The bill proposed eliminating state taxes on tips and overtime, increasing child tax credits, and offering retirement relief for seniors. This development highlights early session conflicts regarding state alignment with federal tax policies.
Arizona Governor Katie Hobbs vetoed Republican legislation intended to align state taxes with federal changes. This legislation would have provided $1.1 billion in relief through higher standard deductions and expanded credits, affecting 88% of filers who use standard deductions and creating uncertainty before the tax season. Unlike other states that automatically update their tax codes to match federal changes, Arizona requires specific legislative votes for conformity. In response, Hobbs introduced a smaller alternative proposal.
Federal tax reforms currently allow deductions for qualified tips up to $25,000 and overtime pay through 2028 for employees and self-employed individuals. These provisions also include relief on Social Security benefits for seniors meeting certain criteria such as joint returns. However, these temporary measures require states to decide whether to adopt them or opt out to maintain control over revenues.
Feely previously served as a placekicker in the National Football League (NFL) for 14 seasons with teams including the Atlanta Falcons and New York Jets, where he set franchise records. He began his career in the Arena Football League before becoming a CBS NFL analyst and winning five Emmys. Feely announced his candidacy for Arizona’s 5th Congressional District in 2025.
