88 Proposed Laws Threatened 660K Jobs, Could Have Reshaped Arizona's Economy

Arizona's state legislature chose not to pass 88 bills during the 2025 session that could have had a significant impact on the state's economy and job market, according to a new report.

The Common Sense Institute (CSI) and Arizona Chamber Foundation analyzed these proposed laws and found they would have cost businesses $45.9 billion each year. The report estimates that this would have resulted in 660,000 lost jobs, $64 billion less in economic activity, and $4,600 less in annual income per person.

The rejected bills fell into several categories. 

Some would have raised taxes by $3.7 billion, including a new payroll tax on employers. Others targeted labor laws, proposing $30 billion in changes, including repealing Arizona's Right-to-Work laws and raising the minimum wage to $18 or $20 per hour. 

Environmental proposals worth $8 billion included requiring half of Arizona's electricity to come from renewable sources by 2035.

"Arizona has consistently outperformed peers like Colorado because of our commitment to pro-growth policies," explained Katie Ratlief, the Executive Director of CSI. "The findings of this report reflect what's at risk if we shift course."

Arizona Impact

Despite avoiding these bills, Arizona's economy is showing warning signs. For the first time since the pandemic, the state lost jobs in both May and June of 2025. Manufacturing and housing sectors have also slowed down.

The report compares Arizona to neighboring Colorado. Over the past nine years, Arizona's economy grew at an average annual rate of 3.2%, while Colorado's grew at 2.8%. 

The difference comes down to regulations.

Colorado has three times as many business regulations per person and has added more than 11,000 new rules in just five years.

Before 2015, Arizona's economy had grown at an annual rate of only about 0.7%. The faster growth after 2016 happened after the state reduced taxes and cut regulations.

The report emphasizes that future policy decisions will determine whether Arizona continues its growth or experiences further slowdown in the years to come.