Arizona’s Tax Haven Attracts Star Pitcher to Diamondbacks

Arizona Republicans have underscored the appeal of the state’s low tax rate following the signing of free agent pitcher Corbin Burnes by the Arizona Diamondbacks. This surprising move, made late last month, defied expectations that Burnes would opt for another Major League Baseball team.

Reports suggest that Burnes’s choice was influenced by Arizona’s favorable tax environment. He was pursued by the Toronto Blue Jays and San Francisco Giants, both of which operate in regions with significantly higher tax burdens than Arizona.

Despite receiving more lucrative offers, Burnes ultimately opted for a contract valued at $35 million per year—with the added advantage of lower state taxes and the option to opt out after two years. His decision allows him and his young family to reside in the Phoenix area, as highlighted by Jon Heyman on social media.

Arizona Senate President Warren Petersen remarked, “Sports players choose Arizona over other states because our taxes are lower. Businesses do the same.”

Former Arizona Governor Doug Ducey expressed enthusiasm about Burnes joining the Diamondbacks, attributing his decision to the state’s low flat tax, a sentiment aimed at California’s Governor Gavin Newsom and Canadian Prime Minister Justin Trudeau.

Burnes reportedly turned down financial incentives from rival teams to come to Arizona. California’s top tax rate sits at 14.4%, while Toronto’s combined federal and provincial tax rate reaches 53.53%. In stark contrast, Arizona maintains a tax rate of just 2.5%.

This competitive tax rate is a product of efforts by Governor Ducey and legislative Republicans, who introduced significant tax reforms in 2021. Tim Phillips of Americans for Prosperity and Grover Norquist of Americans for Tax Reform praised Arizona as a model for tax policy in a recent opinion piece, advocating for reduced tax rates to empower citizens and encourage investment.

The Arizona Supreme Court’s approval of these tax reforms has been hailed as a major victory for taxpayers. Scot Mussi, President of Arizona Free Enterprise, emphasized that the historic tax cuts will benefit all residents and urged special interest groups to recognize the positive impact of the reforms.

State Senator J.D. Mesnard, instrumental in the passage of these reforms, highlighted their early implementation in a January 2023 newsletter, demonstrating their potential to provide significant financial relief to Arizona families.

Daniel Stefanski is a reporter for AZ Free News.