Proposition 208, known as the Invest in Education Act, would create new funding for Arizona schools by taxing high-income earners — specifically Arizona individuals whose annual income exceeds $250,000 or couples whose annual household income exceeds $500,000. These couples and individuals would pay a 3.5 percent surcharge on any income that exceeds those limits, in addition to their regular state income tax. For example, a couple earning $501,000 per year would pay an additional $35; a single taxpayer who makes $300,000 per year would pay $1,750.
Prop 208 is on the ballot because Arizona spends less on education funding than it did a decade ago, and the state consistently ranks near the bottom as compared to other states for teacher pay. The Invest in Education Act is supported by groups including Children’s Action Alliance, the Arizona Center for Economic Progress, Stand for Children Arizona, Arizona Interfaith Network, the Arizona Education Association and numerous local school associations. Prop 208 is opposed by groups including the Goldwater Institute, the Arizona Chamber of Commerce and Industry, the Arizona Lodging and Tourism Association, the Arizona Free Enterprise Club, the Arizona Small Business Association and the Greater Phoenix Chamber.