The Roadmap To Prosperity - Jobs
November 17 2009 16:26 Filed in: Economy | Tax Reform
Arizona is projected to generate $6.5 Billion in revenue this year, however, state spending is hovering above $10 Billion giving us at least a $3.5 billion ongoing imbalance between revenues and spending obligations.
Some have criticized the Legislature for not raising taxes (i.e. “increasing revenue”). Raising taxes in such a down economy will not only fail to bring in the desired revenue, but it will prolong any recovery we could’ve possibly had.
So what then is the solution?
Jobs.
Arizona can neither tax nor cut our way into prosperity. We must grow our way out of what is arguably the second-worst budget in the country behind California and the second-worst level of job losses behind Michigan.
This begs the question…how do we create more jobs?
We need a tax structure that promotes job growth and investment in Arizona now and in the future. Hence, we must pass good business tax policy to make Arizona more competitive.
Unfortunately, Arizona must compete with neighboring states like Texas, which has no personal or corporate income tax (or capital gains tax).
Texas has positioned itself as the highest performing job creation state in the Union due to a favorable business climate, a low cost/low tax environment along with predictable regulations on business. Such good policy has allowed Texas to create more jobs in 2008 than the rest of the 49 states in the U.S. One can make a great case for the causality between Texas’ low tax burden and their astonishing job creation.
Lowering taxes on the most productive aspects of society always attracts investment capital and helps create sustainable, high-wage jobs as we have seen in Texas, Utah and Colorado, the exact kinds of jobs we want to attract and retain in Arizona.
If we truly want to boost Arizona’s economy, we must focus on jobs by way of good tax policy that supports economic activity. State revenue growth will follow, as public spending and employment rely on the fruits of private sector activity.
Some have criticized the Legislature for not raising taxes (i.e. “increasing revenue”). Raising taxes in such a down economy will not only fail to bring in the desired revenue, but it will prolong any recovery we could’ve possibly had.
So what then is the solution?
Jobs.
Arizona can neither tax nor cut our way into prosperity. We must grow our way out of what is arguably the second-worst budget in the country behind California and the second-worst level of job losses behind Michigan.
This begs the question…how do we create more jobs?
We need a tax structure that promotes job growth and investment in Arizona now and in the future. Hence, we must pass good business tax policy to make Arizona more competitive.
Unfortunately, Arizona must compete with neighboring states like Texas, which has no personal or corporate income tax (or capital gains tax).
Texas has positioned itself as the highest performing job creation state in the Union due to a favorable business climate, a low cost/low tax environment along with predictable regulations on business. Such good policy has allowed Texas to create more jobs in 2008 than the rest of the 49 states in the U.S. One can make a great case for the causality between Texas’ low tax burden and their astonishing job creation.
Lowering taxes on the most productive aspects of society always attracts investment capital and helps create sustainable, high-wage jobs as we have seen in Texas, Utah and Colorado, the exact kinds of jobs we want to attract and retain in Arizona.
If we truly want to boost Arizona’s economy, we must focus on jobs by way of good tax policy that supports economic activity. State revenue growth will follow, as public spending and employment rely on the fruits of private sector activity.