Thursday, June 26, 2008

Goldwater Institute: Arizona Legislature Should Reject "Jobs Creation" Package

by Steve Voeller

The most recent "economic stimulus" package the legislature is considering consists of tax subsidies for a chosen few. The good news is that the package as a whole lacks support. The bad news, however, is that parts of it may find their way into the final budget deal. They shouldn't.

Not only is this plan not an economic stimulus, it's not even decent public policy. According to the Tax Foundation, the proposals, "will impose significant costs on Arizona's general fund in the form of tax revenues foregone." Furthermore, paying certain businesses to operate is not the way to jump-start the economy. If policymakers want to encourage job growth, they should start by not raising taxes.

The stimulus plan does not address the looming statewide property tax increase set to occur next year. Property owners face a $250 million tax hike because the governor vetoed a bill to prevent it from occurring. It's a bit misguided to think you can turn around the economy by handing out a few tax subsidies for a few companies, while ignoring a massive tax hike on the rest of Arizona taxpayers.

Steve Voeller is president of the Arizona Free Enterprise Club.

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