PHOENIX, Ariz – January 6, 2010 – It’s a simple idea and a tenant of conservative economic thought: cutting taxes increases job production - thereby increasing government revenue.
They get it. The Governor doesn’t.
Commenting on a legislative plan designed to create jobs in the state of Arizona, Paradise Valley Mayor and potential gubernatorial candidate Vernon Parker says he is excited about a tax-cutting proposal announced by House Speaker Kirk Adams yesterday.
At the same time, he doesn’t understand why Governor Jan Brewer didn’t display the leadership to back it – or even propose it when she took office. Instead, Brewer has touted a plan to raise taxes during a recession. “You don’t tax your way into prosperity,” says Parker.
“Our ‘Jobs Now’ plan has been out there for weeks,” said Parker. “It includes many of the same ideas that were proposed yesterday by the GOP legislative leadership. It’s good to see we are on the same page. It is my hope that the governor will get onboard. ”
Emphasizing that he is “very encouraged” by the GOP proposal, Parker points out that his plan differs a bit from what legislators are seeking.
While saying that any cut in the corporate income tax is a good thing, Parker would like to see a complete phase-out of the tax eventually. “That creates a more stable business environment in the long-term,” he said.
The legislative plan put forth yesterday reduces the current 6.97 percent rate to 4.5 percent. Parker’s plan would completely eliminate the tax starting with a similar cut in 2012.
“I am also glad to see that the legislature wants to tackle the idea of providing tax incentives to create jobs,” continued Parker. “But I would remind them of one thing: small businesses are the gas in our economic engine. While it creates headlines when a big company comes to Arizona, the little guys of the business world are the ones who create the most jobs.”
Parker’s “Jobs Now” plan, while encouraging companies to relocate to Arizona, also includes tax incentives for small business job creation.
One other place the plans differ is in which companies relocating to Arizona are eligible for tax incentives. Parker’s is more inclusive.
He thinks that any company meeting the criteria should be offered the same incentives – regardless of the industry. “Picking the winners and losers in this economy is a dicey thing at best,” he said. “This is about creating jobs, not steering our economy.”
Parker’s “Jobs Now” plan can be viewed at http://parker2010.com/VP-Jobs_Now_Plan.pdf
For more information, please contact Jason Rose.
Paid for by Parker Exploratory Committee
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