The Arizona Chamber released their budget recommendations today and announced their support for Governor Brewer's 5 Point Plan. This counts as another big win for Brewer as discussions continue on how the state is going to get out of this mess.
The ending paragraph sums it up pretty well and echo's what I've heard out there about the tax increase, which happens to be one of the five things being discussed.
If a tax increase is ultimately part of the budget solution, it must be short‐term in nature and coupled with a
comprehensive tax reform package that would aid in job retention and creation
as well as capital formation over a longer time horizon, as described in point #4. Under this scenario, the long‐range result has to be a more equitable and balanced tax system.
Dynamic econometric modeling should beused to determine the impact of the tax policy changes on
job creation and retention andaccess to capital. The overall package should result in a net decrease in taxes and a
net increase in job creation over the long‐term.
2 comments:
No matter how many alleged pro-business groups report their support of higher so-called temporary taxes that doesn't counter the fact that higher taxes impair business operation, higher taxes encourage business to locate their operations elsewhere, higher taxes take away economic freedom from the residents of Arizona and give power to government bureaucracy (the same one that didn't predict the recession and has no other answer other than raise taxes when it comes to economic slumps).
I am sure ASU has a course of dynamic econometric modeling but that doesn't prevent the pervasive desire of the advocates of government from lying with numbers or high-falutin' theories.
There is no such thing as a "good" tax. The scientifically designed tax that doesn't impair freedom and business operation (e.g. commercial prosperity) does not exist.
If I'm in California and am looking to move my business, Arizona is a nice place to do it. We're low on the income and property tax pole (although business property needs adjustment) and comparatively low on the sales tax pole.
If I am moving my family though and read about how the schools suck and it will cost as much or more to send my kid in-state to ASU than to UCLA.
No one is claiming there are good taxes. This isn't some random year where the Governor wants to push through some pet projects and needs to pay for them.
I'm just disappointed by the plans, or lack of plans that I hear out there.
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