Gov. Jan Brewer said Tuesday she may finally give the state’s tax-cutting knife a rest.
In Germany to promote Arizona both for business expansion and tourism, the governor said that she has been using the opportunity to tell the story of the state’s economic recovery. Brewer also said she is detailing for business executives the package of tax cuts enacted in the past two years.
“They were absolutely impressed with what we have done,” the governor told reporters in a conference call. “And they thought that we were very, very competitive with everything we’ve done in regards to our tax reform, our incentives.”
During those last two years, Brewer signed bills to cut taxes on capital gains, provide tax breaks for new investments and eventually slash the corporate income tax rate by 30 percent. The price tag of the combined efforts, when fully implemented, is estimated to exceed $630 million.
All that, the governor said, may be enough for awhile.
“Maybe there is a possibility if the economy turns around so great that we could do more in that direction,” she said.
“I would never say ‘never,’” the governor said of future tax cuts. “As I sit here today, it would be almost impossible for me to make that kind of prediction.”
But Glenn Hamer, president of the Arizona Chamber of Commerce and Industry, said he shares the governor’s assessment of the state’s current competitiveness — and of the need for future massive tax cuts.
“By having a phase-down of our corporate income tax rate, by making the state incredibly attractive for export-oriented industries of all types, we have hit the theoretical limit on some of the corporate income tax reductions,” he said.
In that conference call, Brewer said she extended an invitation, at least indirectly, for German Chancellor Angela Merkel to visit Arizona in September, tacking that on to her NATO meeting that month.
And she got to stop at a remaining segment of the Berlin Wall.
“I put the date and signed my name and then put down the word ‘Freedom,’” she said. “That was amazing.”
But the governor said the main focus of the trip to Germany — and, Wednesday to France — remains promoting the state.
Brewer said Tuesday morning featured a trade and tourism seminar.
“We met with about 25 to 30 representatives who expressed keen interest in Arizona,” she said. And Brewer said German executives have a particular interest in solar energy.
“We came with the idea on this trade mission to talk about global competitiveness to ensure that Arizona is being recognized for everything that we’ve accomplished,” she said.
Hamer said that cannot be underestimated.
“We’ve made gigantic strides over the last two years,” he said.
How good? Hamer noted that, even with those tax cuts yet to be phased in, the state earlier this month managed to crack the Top 10 list of the best places to do business in a survey of corporate chief executive officers by ChiefExecutive.net.
“My joke is, in each of the last two years we’ve passed a once-in-a-generation tax reform,” Hamer continued. “You obviously can’t do that every year.”
Hamer said that, as far as he can tell, Arizona now has a tax system which, in general, is competitive with other states. He said, though, that can be a moving target as other states continue to revamp their own tax structures.
But Sen. Steve Yarbrough, R-Chandler, said he still sees places where the state can do more. One is the issue of property taxes on business equipment.
Current law exempts the first $67,000 of equipment from taxes. One provision in this year’s tax cut package will increase that to more than $120,000.
Yarbrough, who chairs the Senate Finance Committee, said that’s still too high.
“That really is kind of a killer tax,” he said.
The problem, however, may resolve itself: Lawmakers have put a measure on the November ballot to set up a formula linking the exemption to median earnings in the state. Farrell Quinlan, state director of the National Federation of Independent Business, said that, at current levels, that computes out to about $2.4 million.
Yarbrough also believes that, even with the 30 percent cut in corporate income taxes, the rate is “still relatively high.” And he said the tax code always will need some “tweaks around the edges.”
Hamer said what’s needed now to make Arizona more attractive to business, is a greater focus on higher education, with companies believing a university system that “churns out world-class graduates” is as important as tax and regulatory policy.
“We’ve got an issue with the skills that our university graduates and high school graduates have,” Hamer said. “Not all have the skills they need to succeed in the 21st century workforce.”
He also made a pitch for construction of the proposed I-11 to connect Phoenix with Las Vegas.
Rational Human posted at 8:02 pm on Tue, May 29, 2012.
Good job Jan. We're well on our way to bringing more jobs to AZ. This will surely infuriate the progressive socialists that think only higher taxes and more government spending can cure everything.
downtownresident posted at 9:27 pm on Tue, May 29, 2012.
If one of these welfare tax cuts has ever had a positive effect, I haven't seen evidence of it.
Quit stuffing your vest with cash and invest in expansion of the business.
fae4now posted at 8:30 am on Wed, May 30, 2012.
I found Glen Hamer's last few comments to be most telling. Seems our European friends might be reluctant to bring business here for lack of a qualified work force, a valid concern.
We all know Arizona has a long, dismal record on investing in education, 47th in the nation if memory serves me correctly.
I understand businesses also seek quality infrastructure, paid for by state taxpayers.
So here's the rub: Brewer's tax cuts result in loss of revenue to the state with which to invest in things like education and infrastructure.
How does she propose to resolve that?
In_God_We_Trust posted at 9:27 am on Wed, May 30, 2012.
downtown, what position in the state do you hold that would give you a birds eye view of the effects of these tax cuts? The cuts are a good start in attracting businesses to come here. Only time will tell and the state of the economy in the near future.
fae, infrastructure is an ongoing project that has never been able to keep up with the tremendous growth we've experienced in the past, but we are catching up lately. We are a pay as you go state, and we are balancing our budget.
Putting more money into education is something I hear a lot. I hear we just don't put enough money into it and that is why we rank low in education amongst all other states. What I would ask you and anyone else who knows something about this matter is what is it that money can buy that our kids are lacking that would improve their education? More books? Computers? Sports equipment?
The U.S. Department of Education shows Arizona with a 10.5 percent dropout rate, the nation’s highest. State lawmakers provide about $6,000 per student, about $2,000 less than the U.S. average; last, or close to it, in most surveys. Analysis also dings schools for spending more on administrators, maintenance, nurses and counselors than teachers and classroom supplies. State schools spend about 3 percent less on direct classroom instruction than the national average. On this point, the analysis ranked Arizona 46th out of 50.
Class size is a problem for Arizona, which has the largest elementary school classes of any state, according to the analysis. Classes averaged 24.5 students, compared to Nebraska, which has the smallest at 17.5. Smaller classes means students can be monitored more closely. Some studies show that smaller classes of fewer than 20 students increased achievement but gains often were minor, so maybe that isn't so important to our problem.
The average Arizona teacher made $42,905 in 2005, according to the most recent National Education Association survey. Connecticut paid the most at nearly $58,700 a year and South Dakota the least at around $34,000, so I don't really see that as the problem unless teachers are just refusing to put out any effort because they think they are underpaid.
Test scores is where we really hurt. Based on the National Assessment of Educational Progress, a test given to a sampling of fourth- and eighth-graders in every state. In 2005, kids took reading and math exams; in 2002, writing exams.
About 25 percent of Arizona students scored at grade level. The national average was around 30 percent. Only in eighth-grade math and reading did Arizona break out of the 10 states lowest in this analysis. Arizona’s white and wealthier students scored at the national average, low-income and minority students fell below.
This ties back to cash: 42 percent of Arizona’s nearly 1 million students are poor. Research shows poor kids lag behind wealthier peers and do better in smaller classes with experienced teachers. Both cost money. It’s hard to blame immigration, but it is a factor. About 12.5 percent, or 125,000, of Arizona’s students live in migrant families.
So, knowing these facts, where do you think our hard earned money should go that will bring our children up to the national average, which in my opinion is extremely low compared to the rest of the industrialized world.
Some say Arizona lawmakers just don't value education, but they aren't stupid. They know a dumb people can't handle technical jobs that require skills that go beyond fast food restaurants and sweeping/moping floors.
Personally, I think attendance is more important than any other factor. American children spend only around 180 days in school each year. That is less than half a year. What do they do the remainder of the year? Play. They are studying for their futures but given more time to goof off than actually study. Why do they get 3 months off for summer? When we were an agricultural nation with more than 90% living on family farms they needed that time off to help bring in the crops, but that time is long past, and now we need them for other things like engineering and scientific and many other technical jobs that require much more education. I think they should at least be putting in a 40 hour week at the high school level and it should be a full year each year. Teachers are paid for the entire year but still get much more time off than they should be getting. 2 or 3 weeks off for vacation is more than enough with holidays too. If this costs more and they do this, I would be in favor of raising taxes to cover any added costs.
Rational Human posted at 8:08 pm on Wed, May 30, 2012.
Well stated In_God_We_Trust. I think everyone sees that there is a problem, but they either don't understand it and say things like throw more money at it, or really don't care if we improve or not. The rest of the world excels in math, science and reading skills. Canada ranks pretty high. I wonder what they are doing differently than we are. I wonder what the racial makeup is of the schools. Since our White children are at least scoring at the national level, I wonder what their racial ratios are up north. Could it be that simple. In 2006 Canada had 2.5% Blacks and 1% Latin Americans. They include everything below the US as Latin America. Hmmm, could it be that simple? Canadian children attend school a few more weeks per year so that shouldn't account for our ranking 14th when Canada ranks third highest. Oh I forgot, taking race into account isn't allowed as it's wacist.
Rational Human posted at 8:11 pm on Wed, May 30, 2012.
BTW: The 2006 census counted a total Canadian Aboriginal population of 1,172,790 (3.75%).
Rational Human posted at 8:10 pm on Fri, Jun 1, 2012.
Heiner Rindermann et al., Intelligence, May 2012
Abstract:
Studies investigating evolutionary theories on the origins of national differences in intelligence have been criticized on the basis that both national cognitive ability measures and supposedly evolutionarily informative proxies (such as latitude and climate) are confounded with general developmental status. In this study 14 Y chromosomal haplogroups (N=47 countries) are employed as evolutionary markers. These are (most probably) not intelligence coding genes, but proxies of evolutionary development with potential relevance to cognitive ability. Correlations and regression analyses with a general developmental indicator (HDI) revealed that seven haplogroups were empirically important predictors of national cognitive ability (I, R1a, R1b, N, J1, E, T[+L]). Based on their evolutionary meaning and correlation with cognitive ability these haplogroups were grouped into two sets. Combined, they accounted in a regression and path analyses for 32–51% of the variance in national intelligence relative to the developmental indicator (35–58%). This pattern was replicated internationally with further controls (e.g. latitude, spatial autocorrelation etc.) and at the regional level in two independent samples (within Italy and Spain). These findings, using a conservative estimate of evolutionary influences, provide support for a mixed influence on national cognitive ability stemming from both current environmental and past environmental (evolutionary) factors.
Given the way so much scientific research is underwritten by government and academia, it's probably a good thing that these findings won't enter mainstream discourse (funding would be terminated.) A bunch more studies like this need to get into the scientific literature, and THEN after the conclusion is unassailable, we can start making its awareness a part of popular culture.
Rational Human posted at 8:12 pm on Fri, Jun 1, 2012.
You can see the study results here: http://lesacreduprintemps19.wordpress.com/
DavidNichols posted at 12:52 pm on Sun, Jun 3, 2012.
How Ironic!
Jan Brewer signed a piece of the remaining Berlin Wall, and wrote the word "Freedom"?
Now she is "Viewing "to get More Disgusting Spy Drones loaded with Thermal Viewing, and Laser Listening flying over Arizona?
There are already hundreds of them flying over our homes now, watching us as if our homes were made of glass!
These drones are disguised to look like phony Jet Airliners, and Cargo Planes, with smaller noisy propeller Drones disguised as private Aircraft's, Mooney, Cessna, Piper, V-wings, Bi-wings 1950's retro fighter's ect. ect.
These Drone programs are Trashing "Freedom", and desicrating our Fallen Hero's graves!
Governor Brewer it was appropriate for you to be at the Berlin Wall!
Our Founding Fathers would have lined up every Peeping Tom Perverted Coward in the Current Spy Drone Programs over our "Homeland" in front of a Firing Squad!
To see a couple of these disguised Drones see my You Tube post:
"Un-reported near miss over Arizona."
Yes these are both Drones, one phony Southwest Airliner, and one Piper Navajo.
Many more Drones are flying 24/7 spraying Chemical Cloud Cover (High Clouds)in the air we must all breathe.
(White Aerosol, Barrium Oxide, and Aluminum Oxide to list a few of the Chemicals.)
The Fallen Residue makes it look like the entire Country is the Smoky Mountains.
Wake up America?
Look up?
"Freedom" and our Constitution are Now being Trashed by Government "Tyrants" right Jan?
Any thing for Money right Mrs. Brewer?
To: "Freedom".
Rational Human posted at 8:51 am on Tue, Jun 5, 2012.
Hey David do you have any real evidence that Brewer and our state legislature are putting up spy drones? Only news I've seen on drones is Nappy and the DHS putting up drones to watch the border. They come no where close to being cost effective, but the feds never worried about wasting taxpayer money before.