New report warns of costly legislation that could undermine Arizona’s economic growth

A new analysis from the Arizona Chamber Foundation and Common Sense Institute Arizona (CSI) finds that dozens of bills introduced during the 2025 legislative session could have derailed Arizona’s economic momentum, threatening jobs, incomes, and the state’s competitiveness.

The 2025 Arizona Job Killers report identified 85 bills that, if enacted, would have imposed more than $45.9 billion in annual costs on businesses, reduced employment by 660,000 jobs (a 20% decline), cut per-capita income by $4,600, and shrunk Arizona’s economy by $64 billion.

“Arizona has shown the nation what happens when states embrace policies that encourage growth,” said Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry. “But this report makes clear that the progress we’ve made is not guaranteed. The sheer number of costly bills considered in the 2025 session should serve as a warning. We must remain vigilant in protecting Arizona’s competitiveness and preserving the policies that have made us an economic leader.”

Among the most significant proposals flagged in the report:

• Repeal of Arizona’s right-to-work law — projected to impose $18.6 billion in new costs and reduce employment by nearly 4% by 2033.
• New or increased taxes — totaling $3.7 billion, including a proposed 1% payroll tax on employers with more than 50 workers and a $1,000 minimum corporate income tax.
• Energy and environmental mandates — such as adopting California-style vehicle emissions standards and requiring 50% renewable electricity generation by 2035, which CSI estimated would raise energy costs by billions and reduce job growth.
• Housing market interventions — such as rent control, which CSI cited as a policy with a “well-documented” record of reducing supply and harming affordability.

The report also draws comparisons with Colorado, where CSI has tracked more than 20 “job killer” laws enacted since 2019. Once a peer economy, Colorado has since fallen behind Arizona in both GDP and job growth. CSI estimates that if Arizona had followed Colorado’s trajectory, the state would have 113,000 fewer workers and $18.6 billion less in annual economic output today.

“Good policy choices have helped Arizona outpace much of the country in growth over the last decade,” said Katie Ratlief, executive director of CSI Arizona. “But as this report shows, just a handful of costly mandates could reverse those gains. The lesson from states like Colorado is clear: when lawmakers pursue policies that burden job creators, the entire economy suffers.”

While none of the 85 bills analyzed were enacted this year, the report cautions that the repeated introduction of such measures reflects a continuing risk. The Chamber and CSI argue that sustaining Arizona’s economic momentum will require policymakers to reject measures that add costs, restrict growth, or weaken the state’s business climate.

The full 2025 Arizona Job Killers report is available here.

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