AZ Needs Comprehensive Budget Strategy
By Rep. Steve Montenegro (R-Legislative District 12)
Arizona’s unemployment rate is the highest it has been since 1983, with the private sector sustaining the second-highest job loss in the nation, second to only Michigan. Arizona families and businesses continue to struggle to make ends meet, while government leaders toil to find a solution to get the state moving in the right direction again.
Arizona Republican lawmakers understand we cannot cut the state budget or raise taxes enough to revive the economy. The only solution is to develop a pro-business, job creating, economic growth package that allows the state to emerge successfully from this economic downturn.
Legislators from both sides of the aisle agree on one thing: Arizona’s economy needs to turn around and start working for the citizens in this state once again. However, we are somewhat less agreeable on how to deliver that recovery.
The state’s Democrats want to expand the tax base, increase government spending and consistently vote against a responsible balanced budget package. Whereas, Republican lawmakers think the answer to fixing our economy is found in a comprehensive tax reform plan designed to stimulate job creation and attract businesses to the state.
Our plan begins with the passage of a responsible, balanced budget that works to bring government state spending in-line with actual revenues. Arizona’s spending exponentially expanded during the Napolitano years and is now unsustainable.
The budget plan sent to the Governor has been criticized for inclusion of a tax reduction package even though it benefits individuals and businesses. Opponents of our tax plan would like voters to believe it’s a $650 million give-away in tax cuts to corporations and special interests. Not true.
In order to have a robust economy, solid pro-growth policies must be implemented. No other state in the nation is focused on growing out of the recession. Taking more from taxpayers in a recession is a recipe for disaster and does not create an environment for recovery or job growth.
If passed, Arizona’s tax package would be a major pro-growth package to support Arizona jobs, businesses, and economic activity. Specifically, our plan will:
Repeal the State Equalization Property Tax providing $250M in property tax relief to residential and business property taxpayers in FY10 and beyond;
Reduce the assessment ratio for secondary property tax on commercial property from 20% to 16% beginning Tax Year 2012;
Permanently reduce the Corporate rate from 6.968% to 4.86% ($200 million total), moving Arizona from the 23rd most competitive state to 7th best in the nation, bypassing states such as Utah, Florida, and Virginia, starting Tax Year 2011; and
Permanently cut Arizona’s Individual Income Tax rates across the board by 7% ($200 million total); every taxpayer will receive a 7% income tax reduction starting Tax Year 2011.
Our tax package incorporates pro-job tax reductions designed to encourage Arizona businesses to expand operations, create jobs and restart economic growth; as well as, create a pro-business environment to entice people and businesses from neighboring states and across the nation to come to Arizona to set up businesses.
Rep. Steve Montenegro from District 12 represents the cities of Litchfield Park, Goodyear, Surprise, Glendale, Buckeye, El Mirage, Avondale, West Phoenix and Waddel. Contact Rep. Montenegro at 602-926-5955 or via email at smontenegro@azleg.gov.
Arizona’s unemployment rate is the highest it has been since 1983, with the private sector sustaining the second-highest job loss in the nation, second to only Michigan. Arizona families and businesses continue to struggle to make ends meet, while government leaders toil to find a solution to get the state moving in the right direction again.
Arizona Republican lawmakers understand we cannot cut the state budget or raise taxes enough to revive the economy. The only solution is to develop a pro-business, job creating, economic growth package that allows the state to emerge successfully from this economic downturn.
Legislators from both sides of the aisle agree on one thing: Arizona’s economy needs to turn around and start working for the citizens in this state once again. However, we are somewhat less agreeable on how to deliver that recovery.
The state’s Democrats want to expand the tax base, increase government spending and consistently vote against a responsible balanced budget package. Whereas, Republican lawmakers think the answer to fixing our economy is found in a comprehensive tax reform plan designed to stimulate job creation and attract businesses to the state.
Our plan begins with the passage of a responsible, balanced budget that works to bring government state spending in-line with actual revenues. Arizona’s spending exponentially expanded during the Napolitano years and is now unsustainable.
The budget plan sent to the Governor has been criticized for inclusion of a tax reduction package even though it benefits individuals and businesses. Opponents of our tax plan would like voters to believe it’s a $650 million give-away in tax cuts to corporations and special interests. Not true.
In order to have a robust economy, solid pro-growth policies must be implemented. No other state in the nation is focused on growing out of the recession. Taking more from taxpayers in a recession is a recipe for disaster and does not create an environment for recovery or job growth.
If passed, Arizona’s tax package would be a major pro-growth package to support Arizona jobs, businesses, and economic activity. Specifically, our plan will:
Repeal the State Equalization Property Tax providing $250M in property tax relief to residential and business property taxpayers in FY10 and beyond;
Reduce the assessment ratio for secondary property tax on commercial property from 20% to 16% beginning Tax Year 2012;
Permanently reduce the Corporate rate from 6.968% to 4.86% ($200 million total), moving Arizona from the 23rd most competitive state to 7th best in the nation, bypassing states such as Utah, Florida, and Virginia, starting Tax Year 2011; and
Permanently cut Arizona’s Individual Income Tax rates across the board by 7% ($200 million total); every taxpayer will receive a 7% income tax reduction starting Tax Year 2011.
Our tax package incorporates pro-job tax reductions designed to encourage Arizona businesses to expand operations, create jobs and restart economic growth; as well as, create a pro-business environment to entice people and businesses from neighboring states and across the nation to come to Arizona to set up businesses.
Rep. Steve Montenegro from District 12 represents the cities of Litchfield Park, Goodyear, Surprise, Glendale, Buckeye, El Mirage, Avondale, West Phoenix and Waddel. Contact Rep. Montenegro at 602-926-5955 or via email at smontenegro@azleg.gov.