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No More Tax Credits for Hollywood

February 22, 2012 By 1 Comment

By Stephen Slivinski

It’s like a bad re-run. A few legislators are trying to revive Arizona’s film production tax credit (SB 1170) that lapsed in 2011.

According to the last annual report on the effectiveness of the credit, in 2009 four media companies completed production on credit-approved projects. After taking into consideration the small bit of sales tax revenue the film generated while in production, the state paid out a net of just over $2 million in tax credits. That’s an average of half a million dollars per project.

How many jobs did that create? About 41 jobs directly related to the project and another 20 that were presumably from the ripple effect on the local economy. An analysis by economists at the W.P. Carey School at Arizona State University shows that these jobs were temporary and, thus, the post-production employment impact of this tax credit was “minimal.”

States like Washington and Iowa terminated their film credit programs last year and others have suspended them until their effectiveness can be studied. The general consensus among analysts is that these credits cost more than they’re worth and their existence owes more to star-struck policymakers than it does to economic logic.

The legislature this year, just as they did last year, should avoid putting Arizona taxpayers back on the hook for film production. Arizona doesn’t need to buy another ticket to this overpriced flop.

Stephen Slivinski is a Senior Economist for the Goldwater Institute.

Learn more:

Arizona Department of Commerce: Motion Picture Production Tax Incentive Annual Report for 2009 (PDF)

Tax Foundation: Report on Film Tax Credit (2011)

Filed Under: Arizona Politics, Arts, Economic Development, Economics, Legislation, Movies, State Budget, State Government, Taxation

3 Republican legislators vote to continue corporate subsidies to newspapers

February 17, 2012 By 12 Comments
Cross-posted from IC Arizona
by Rachel Alexander

I couldn’t believe what I watched yesterday. Three Republican legislators – who all hold themselves out as conservatives – voted in a committee hearing to continue granting print newspapers an exclusive monopoly on public notices. Reps Carl Seel, Jeff Dial, and Terri Proud all voted against HB 2403, which would have brought us into the modern era and permitted public notices to be posted on the internet instead of print newspapers, including on government websites, saving taxpayers lots of money and increasing transparency. Websites like Sonoran Alliance and my IC Arizona would be able to post public notices at a  more competitive cost.

I wrote an article fully explaining the depths of this problem here. I received this email today about it: “I work for a newspaper and you’re 100 percent right … but I can’t say anything. Not only does the public pay to put notices in the paper, the law requires purchasing the paper to get the notices. They get you coming and going.”

It may not be too late to revive this bill. Please contact the three Republican legislators who voted against it and express your disappointment. Kudos to the Republican legislators who supported it, Sen. Andy Biggs, Rep. David Stevens and Rep. Justin Pierce.

Carl Seel – cseel@azleg.gov 926-3018
Jeff Dial – jdial@azleg.gov 926-5550
Terri Proud – tproud@azleg.gov 926-3398

Filed Under: Blogs, Conservatives, Elected Officials, Entitlements, Government, Journalism, Spending, State Budget, Taxation

Wil Cardon Statement on President Obama’s FY2013 Budget

February 13, 2012 By Leave a Comment

For Immediate Release: February 13, 2012
Contact: Katie Martin

Phoenix, Arizona – Wil Cardon, Mesa businessman and candidate for U.S. Senate, issued the following statement after President Obama released his FY2013 budget:

“President Obama’s budget promotes more government spending, higher taxes to fund that wasteful spending and more government debt for future generations. Regardless if you are Republican or Democrat, when looking at this budget from a business perspective, it is clear that President Obama has no real world business experience or concept of Main Street America.

“The President and Congress continue to play politics with the country’s budget and with $15 trillion of debt; we don’t have time for political theater. The President said today in a campaign stop in Virginia, ‘we can’t cut our way to growth.’ America needs a leader who understands that spending cuts will bring us to prosperity, and that more government spending is not the answer. Letting job creators do what they do best is the path to growth, but businesses are struggling to jump through the hoops of big government. Over regulation, higher taxes and Obamacare are three policies from this administration that result in less private sector growth. It is unfair for President Obama and this do-nothing Congress to continue to hinder business owners with their failed policies and political grandstanding.

“As a business owner, I know what it’s like to balance a budget, make payroll, and I have run my business for the last decade completely debt free. There is a way to do this on the national level, but when you have career politicians with zero private sector experience handling the budget, you get career politician results. This was President Obama’s final attempt to write and promote a budget that would fix our dismal economic outlook, but instead, he chose to use this opportunity to stay the course regardless of the disastrous results. We need business men and women to take over the nation’s budget. It is imperative that we send leaders to Washington who know what to do, have a willingness to do it and will get the job done.”

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Filed Under: Campaigns & Elections, Federal Budget, Federal Government, Press Release, Spending, Taxation Tagged With: ,

Rep. David Schweikert: Fool Me Once, Fool Me Twice

February 13, 2012 By Leave a Comment

FOR IMMEDIATE RELEASE: February 13, 2012
CONTACT: Rachel Semmel

Washington, D.C. – Congressman David Schweikert (R-AZ) released the following statement Monday after President Obama released his Fiscal Year 2013 Budget request which calls for unprecedented levels of spending and debt increases and tax hikes:

“President Obama’s fourth go-around at a budget is not much better than his previous attempts. This document is terrible for jobs and a raw deal for America’s seniors. Further, it is laden with the same tax-and-spend gimmicks that drove us to our $15 trillion debt and counting.

“This budget breaks the president’s promise to cut the deficit in half by the end of his first term and actually increases it in the next few years. If enacted, the president’s budget would add $8 trillion to the debt over the next 11 years.

“I sincerely wish the President would put new batteries in his calculator and realize that increased spending and stimulus will not lower our debt and deficit, nor will a faulty and mathematically unrealistic ‘Buffett Rule.’

“It is hard to read this budget and believe the President is taking his fiscal duty seriously.”

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Filed Under: Elected Officials, Federal Budget, Federal Government, Press Release, Spending, Taxation Tagged With: ,

Rep. Quayle Responds to Obama’s Latest Budget Bust

February 13, 2012 By 20 Comments

FOR IMMEDIATE RELEASE: February 13, 2012
CONTACT: Zach Howell

WASHINGTON (DC) – Congressman Ben Quayle released the following statement regarding the release of President Obama’s proposed FY 2012 budget:

“President Obama has already added trillions to the national debt, but he’s not done drowning us in red ink yet. Far from keeping his promise to cut the deficit in half by the end of his first term, the President sent us a budget blueprint that would continue increasing the size of the deficit, and would pile on trillions in new debt over the next decade.

“At a time when the economy is struggling to get back on track, the last thing we should be doing is adding $1.9 trillion in new taxes as President Obama suggests. The President just doesn’t get it. He doesn’t understand that our nation is in real danger unless we take meaningful actions right away to reduce spending and debt. This willfully ignorant budget is more about the President’s reelection than it is about finding solutions to this country’s problems.”

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Filed Under: Elected Officials, Federal Budget, Federal Government, Legislation, Press Release, Spending, Taxation Tagged With: , ,

Rep. Jeff Flake: We’re rolling in deep debt

February 13, 2012 By Leave a Comment

For Immediate Release: February 13, 2012
Press Contact: Genevieve Frye Rozansky

So Just How Broke Are We?

Washington, D.C. – Republican Congressman Jeff Flake, who represents Arizona’s Sixth District, today illustrated the size and scope of the growing national debt.

Adele walked away from last night’s Grammy Awards as the show’s biggest winner with six gold statues, including the coveted Album of the Year award. The accolades were all for Adele’s sophomore album, “21,” which has set album sales records with approximately 6.4 million copies sold since it debuted in early 2011.

The U.S. is so broke that at an average cost of about $13, more than 1.2 trillion copies of Adele’s “21” album could be purchased with our $15.3 trillion debt. That’s 187,500 times the current amount of record sales for “21.”

“We’re rolling in deep debt,” said Flake.

Along with Senators McCain and Rubio, Congressman Flake introduced H.R. 634, the Debt Buy-Down Act, which allows taxpayers to designate up to 10 percent of their federal income tax liability to reduce the national debt. The bill then requires Congress to reduce federal spending by that amount. More information on the Debt Buy-Down Act can be found here.

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Filed Under: Elected Officials, Federal Budget, Federal Government, Press Release, Spending, Taxation Tagged With: ,

Maricopa County better not settle expensive lawsuits of cronies

February 3, 2012 By 35 Comments

A m e r i c a n  P o s t – G a z e t t e

Distributed by C O M M O N  S E N S E , in Arizona

Friday, February 3, 2012

Maricopa County manager David Smith proposing to settle million dollar lawsuits of cronies      

Greedy county officials should be forced to litigate their claims fully to reveal how worthless they are, instead of receiving million dollar settlements

 Maricopa County manager David Smith, the hatchet man for the County Supervisors, is proposing that the county settle the million dollar lawsuits filed by the Supervisors’ cronies against Maricopa County and its taxpayers for amounts of several hundred thousand dollars up to $15 million each. This is a bad, bad idea that will end up very costly to taxpayers. The greedy county bureacrats, who are suing the county over nothing more than “stress” from being prosecuted by Sheriff Arpaio and former County Attorney Andrew Thomas, should be forced to plead their cases in a court of law, so taxpayers can see how sketchy their lawsuits are.

The Supervisors better do the right thing and not award their cronies million dollar settlements. Two of the lawsuits are from their fellow Supervisors Mary Rose Wilcox and Don Stapley! This is a blatant conflict of interest for them to award them huge amounts of money.

The Supervisors have already paid Judge Fields $100,000 of your taxpayer dollars for his lawsuit against the county. He received that money for his claims that he was stressed over Arpaio and Thomas attempting to prosecute him. That prosecution went nowhere since he was able to thwart it.  None of his assertions of stress were ever heard and tried in a court of law, the county simply $100,000 at him in a settlement.

Next, Judge Baca received a $100,00 settlement for her stress over being sued by Arpaio and Thomas. Stephen Wetzel, the county director of IT, received an undisclosed settlement amount.

This is not right. These officials should be forced to go through the regular court system like the rest of us. They should not be awarded hundreds of thousands of dollars for “stress” based on their claims that they were wrongly prosecuted. We will never know if they were wrongly prosecuted, because they were able to successfully thwart Arpaio’s and Thomas’s attempts to prosecute them. It is despicable that they they are being awarded hundreds of thousands of dollars for successfully avoiding prosecution!!! David Smith claims that the county is saving money by settling the claims, but the claims are so groundless the county would end up not paying any money if they were fully litigated. He knows this but wants to guarantee his cronies are vindicated, which in turn vindicates his legal attacks against Arpaio and Thomas. This sets a bad, bad precedent for future bureaucrats down the road to sue over “stress” and receive millions of dollars too.

If the greedy bureaucrats are awarded these lavish amounts of money, taxpayers will consider a citizens’ lawsuit against them. Tea Parties and organizations like the Goldwater Institute and Americans for Prosperity have grounds to sue them based on abuse of our tax dollars.

 The Arizona Republic has coverage.

ACTION ITEM:

Contact the Supervisors who will be deciding whether or not to award these outrageous settlements and let them know that you disapprove of them awarding large settlements to the other two supervisors and their cronies. Tell them these speculative claims need to be heard in a court of law where they will inevitably be DISMISSED.

Supervisor Andrew Kunasek
(602) 506-7562
akunasek@mail.maricopa.gov

Supervisor Max Wilson
(602) 506-7642
mwwilson@mail.maricopa.gov

Supervisor Fulton Brock
(602) 506-1776
fbrock@mail.maricopa.gov
Join Our Mailing List
Filed Under: County Government, Crime and Punishment, Elected Officials, Ethics, Spending, Taxation

OBAMACARE: A Panel Discussion at the Goldwater Institute

February 2, 2012 By Leave a Comment

FOR IMMEDIATE PRESS RELEASE

A Panel Discussion: OBAMACARE

Phoenix, AZ – On Wednesday, February 8, 2012, Arizona Mainstream Project (AMP) will bring to the public a panel discussion on Obamacare.  Speaking on this panel will be Goldwater Institute’s Senior Attorney Diane Cohen and Director – Center for Economic Prosperity Byron Schlomach, Dr. Jeff Singer, and former AZ Congressman John Shadegg.  550 KFYI Talk Host Terry Gilberg will be the moderator for the discussion.

Each panel member will share their personal expertise and direct involvement with uncovering the facts about The Affordable Care Act and how it has begun and will continue to negatively impact the lives of ALL Americans.  You will gain a better understanding of this law and how it applies to your access to health care, the current legal battles, and how you can help stop this anti-American and socialistic agenda.

Diane Cohen:

The Affordable Care Act mandated states to establish insurance exchanges by 2014 or have exchanges set up by HHS. These exchanges are nothing more than invitation-only clubs where only government sanctioned insurers can play. They must meet all the federally mandated medical coverages/benefits specified by the Secretary of Health and Human Services. In an effort to preserve some sovereignty, states, even some who opposed the federal healthcare law, including Arizona, are rushing to get federal money to set up these exchanges. Diane Cohen, Senior Attorney, of the Goldwater Institute will refute this notion.  Ms. Cohen has testified before Congress on the Independent Payment Advisory Board (IPAB). She will explain what effect this fifteen-member board of political appointees will have in our future.

Dr. Byron Schlomach:

Byron will discuss how government is at the root of our problems in health care, making it the problem, not the solution. He will show you how our income tax system plays a major role in determining what our health care system looks like and how it operates.

Dr. Jeff Singer:

Dr. Singer will discuss the ways in which “Obamacare” will affect the patient doctor relationship, the relationship of the doctor with the state, the relationship of the patient with the state, the loss of personal autonomy, and the ultimate decrease in quality and rationing of heath care that will inevitably result from “Obamacare.”

John Shadegg:

President Obama promised that the cost of health care would go down and it hasn’t. A recent HHS press release acknowledged that premiums have gone up by as much as 12.8% in the last year after the rates were reviewed by state bureaucrats under the provisions of Obamacare. Obama has also promised that if you liked your health care plan, you could keep it. Yet, we now know that Obamacare mandates will not allow anyone to keep the plan they had. As the nation’s economy struggles, Obamacare increases taxes by 800 billion dollars and crushes jobs. Learn how free market solutions will reform health care in ways that promotes quality and reduces costs for all Americans.

Date: Wednesday, February 8, 2012
Location:  Goldwater Institute Auditorium
Address: 500 E. Coronado Road, Phoenix,  AZ

Time: 6:00 pm – 8:30 pm (doors open at 5:30)

Light snacks and beverages will be served

Cost:  $10.00 per person

To reserve your seat we encourage you to RSVP and purchase tickets in advance

Go to: http://www.arizonamainstreamproject.org/#q=Seminars-18

or send payment to:

Arizona Mainstream Project
15029 N. Thompson Peak Parkway
Suite B-111 Box 589
Scottsdale, AZ 85260

This panel discussion will be STREAMED LIVE from AMP’s website.

A “Live Stream” button will be available on our homepage www.ArizonaMainstreamProject.org on the day of the event.  Follow the instructions to access the live video stream.

Contact: Honey Marques, Executive Director, at 808-283-3661 or honey@arizonamainstreamproject.org

Arizona Mainstream Project is a 501 (c) 3 non-profit charitable grassroots organization whose mission is to attract, educate, and mobilize the people of Arizona around America’s founding principles and leadership. AMP believes in the principles of a constitutionally limited government, free markets, fiscal responsibility, and individual liberty to promote the common good and prosperity for the people of Arizona.

Filed Under: Advertising, Conservatives, Federal Government, Government Reform, Health Care, Legislation, Press Release, Regulations, Special Event, States Rights, Taxation, Uncategorized Tagged With: , , , , , , , ,

Eliminating state capital gains tax could spark an entrepreneurial surge

January 19, 2012 By 1 Comment

By Stephen Slivinski

An important driver of job growth is investment. Without investment, new businesses may not flourish or even see the light of day. And venture capital investment in technology start-ups is one of the highest-profile sources of new business births.

Tax policy can either obstruct the new capital that businesses need or it can step out of the way and allow thousands of flowers to bloom. A number of studies have shown that taxes on capital gains – the return an entrepreneur or investor receives on their investment – have been shown to be a barrier to entrepreneurship and the job growth it creates.

Capital flows where it can find high returns and low barriers to allocation, and businesses in states with lower capital gains taxes receive more investment than their higher-tax counterparts. A 1998 study by Harvard University professors Paul Gompers and Josh Lerner concluded that entrepreneurial activity is sensitive to the taxation of capital gains. In particular, the authors found that a reduction in capital gains taxes is associated with an increase in venture capital funding in a state.

A 2010 study by William Gentry of Williams College came to the same conclusion. His paper noted that “capital gains taxes could distort a number of important decisions of entrepreneurs. These decisions include starting a new business, expanding the business, and obtaining outside financing; the capital gains tax can also affect whether and when an entrepreneur sells his or her business.”

Arizona, like most states with an income tax, treats capital gains as “normal” income and taxes it at the same rate as all other income. But nine states, including New Mexico, tax investment at a lower rate than their standard income tax.

In the material released after the State of the State speech, Governor Brewer indicated she understands that Arizona needs to lower its tax barriers to capital investment – an important step. But the governor and legislature should go further and eliminate the tax on capital gains altogether.

Arizona can be the first state with an income tax to do that and could, as a consequence, end up being a hub for new venture capital activity.

Stephen Slivinski is a Senior Economist with the Goldwater Institute.

Learn more:

American Council for Capital Formation: Capital Gains Taxation and Entrepreneurship

Harvard University: What Drives Venture Capital Fundraising? (PDF)

American Action Forum: Employment Effects of Reducing Capital Gains Tax Rates in Ohio

Filed Under: Arizona Politics, Economic Development, Economics, Jobs/Labor, State Budget, State Economy, State Government, Taxation

“Conservatives” Angling for a NEW National Tax?

January 18, 2012 By 4 Comments

 

Right when we should be CUTTING spending (not just the rate of increase, but ACTUAL spending) and lowering taxes, certain elements of the RNC and “think tanks” are angling not just to keep existing spending and taxes going but ADD an entirely NEW federal tax for us to pay.

What the heck is going on, aren’t we in the midst of a teaparty?

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Is a European Style VAT Tax the GOP’s Answer to the Growing Federal Funding Crisis? 
 
With all the GOP candidates fussing over Mitt Romney and his track-record at Bain Capital, does it not strike anyone as odd that none of them are putting the screws to the Massachusetts Republican in debates over his unwillingness to rule out a European-style Value Added Tax (VAT)?
Mitt and VAT (Valued Added Tax)
While Romney says he doesn’t want to go down the path of European socialism, in a recent Wall Street Journal he did not rule it out and even suggested that it might be an option.
 
The lack of clarity on this subject is ominous given that a VAT is probably the only way to come close to funding the federal government at its current levels of outrageous spending. Since none of the other candidates are forcefully calling Romney out on the VAT issue, I suspect an eventual Republican betrayal on establishing a VAT tax is likely.
 
As a reminder, a VAT would tax goods at ALL layers of production, from their origin as raw material to manufacture to final product.
 
Rising levels of federal deficit spending create momentum toward the VAT “solution.” Debt-addicted central governments in Europe and the United States have no intention of dealing with the true causes of the financial crisis.
 
To get to a VAT from here, all the political class needs to do is wait around for a “responsible” Republican to come around and act as a tax collector for the welfare state. My point is the Big Government people have already established the new unsustainable spending baselines.   All they need now is a gullible Republican to come in and “do something.” Paralysis and dysfunction are their friends, because it will lead to a crisis that may well result in the imposition of the VAT tax.
 
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Interestingly, the imposition of a VAT by the federal government is currently illegal and unconstitutional.
 
So, how do they implement it?
 
 
So, what does “balanced budget” mean?  To you, me, the teaparty, and normal people it means to bring spending in line with revenues.  I.e. don’t spend more than you have.
 
But once you enter the twisted mind of a politician, “balanced budget” means RAISING REVENUE to match the amount of money you WANT TO SPEND.
 
Since
a) imposition of a VAT by the federal government is now illegal and unconstitutional,
b) congress and certainly our state legislature lacks any will or spine to CUT REAL spending (not just rates of increases), and
c) it requires a constitutional amendment to pass this new tax,
there is no other conlcusion to draw than this travesty certain state legislators want to desecrate our God-inspired constitution with will lead to anything other than a new federal tax to meet spending targets the government wants to achieve.
 
Frankly, any state legislator who believes otherwise is an idiot.  (Yes, I just called you that.  Embrace it.)  A real Republican would be withholding remittance of tax receipts to the federal government, not empowering the federal government to levy yet another tax from Arizonans.
 
The fact that Republicans are behind this one is disgusting and only proves that RINO hunting should be an active and ongoing endeavor by any real American patriot.
 
Our God-inspired constitution is just fine, thank you.    Leave it alone.
 
Teaparty, y’all!
 
Filed Under: Arizona Politics, Campaigns & Elections, Constitutional Law, Debt, Federal Budget, Spending, States Rights, Taxation

Alcohol and Substance Abuse Prevention and Early Intervention Health Initiative files for 2012 Ballot

January 17, 2012 By 7 Comments

This was just filed with the Arizona Secretary of State’s Office. Supporters of this ballot initiative would like to see it appear on the 2012 November ballot:

ALCOHOL AND SUBSTANCE ABUSE PREVENTION AND EARLY INTERVENTION HEALTH INITIATIVE, proposes an alcohol tax of 25 cents on a gallon of spirituous liquor, and one dollar each on a gallon of beer and wine, the equivalent of less than ten cents per drink. Proceeds will fund prevention and early intervention services for any entity that affiliates with a community based prevention coalition. The initiative establishes an eighteen member commission which sets policy. Only the thirteen members, including three tribal representatives are voting members. The non voting members are directors or deputy directors of the Arizona’s governmental departments.

Should this pass it would require the taxpayers of Arizona to create another new tax on a “sin” and get the State of Arizona involved and investing in keeping yet another source of revenue.

One would think that the solution to alcohol and substance abuse prevention would be parents, family, friends, neighbors and the faith-based community and perhaps an ounce of discipline.

Filed Under: Ballot Measures, Campaigns & Elections, Culture, Drugs, Family, Legislation, Taxation, Youth

Rep. Jeff Flake: So Just How Broke Are We?

January 17, 2012 By 3 Comments

FOR IMMEDIATE RELEASE: January 17, 2012
CONTACT: Genevieve Frye Rozansky

Washington, D.C. – Republican Congressman Jeff Flake, who represents Arizona’s Sixth District, today illustrated the size and scope of the growing national debt.

For a $2 fee and by placing a minimum order of either $8 or $10, some residents in the greater Washington, D.C. area could enjoy home delivery from fast food giant Burger King. It was announced over the weekend that Burger King has been testing home delivery for its menu items from four of its locations in the D.C. suburbs.

The U.S. is so broke that even adding the $2 delivery fee and based on a minimum purchase of $10, our $15.2 trillion federal debt could pay for $1.3 billion at-home Burger King deliveries.

“The level our debt has reached is a real Whopper,” said Flake.

Along with Senators McCain and Rubio, Congressman Flake introduced H.R. 634, the Debt Buy-Down Act, which allows taxpayers to designate up to 10 percent of their federal income tax liability to reduce the national debt. The bill then requires Congress to reduce federal spending by that amount. More information on the Debt Buy-Down Act can be found here.

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Filed Under: Elected Officials, Federal Budget, Federal Government, Press Release, Spending, Taxation Tagged With: ,

Arizona House Speaker Promotes Economic Development

January 12, 2012 By Leave a Comment

FOR IMMEDIATE RELEASE: January 12, 2012
CONTACT: Rey Torres

Commends Governor Brewer’s Tax Proposal

STATE CAPITOL, PHOENIX (January 12, 2012) – Speaker Andy Tobin today commended Governor Jan Brewer on her announcement of a series of tax reforms designed to spur economic growth. “I am very supportive of the Governor’s tax reform proposals,” said Speaker Tobin. “The fiscal health of our economy remains the number one issue facing our state.” Speaker Tobin further iterated the importance of promoting capital investment and workforce development as well as reducing the administrative and regulatory burdens placed on businesses.

Last year, House Republicans spearheaded Arizona’s Jobs Bill, which laid down the foundation for the state’s economic recovery, and which Governor Brewer signed into law. This year, Speaker Tobin is advocating for additional tax cuts as well as regulatory reforms to cement Arizona’s status as a place businesses want to set up shop.

In addition to the Governor’s tax reforms, Speaker Tobin is proposing a regulatory tax credit. This plan will provide a dollar for dollar tax credit equal to the cost of excessive government regulations. “The cornerstone of job creation is lowering the cost of doing business in our state,” said Speaker Tobin. “This tax credit will supplement the Governor’s other tax reforms to help encourage business expansion as well as new businesses locating across the state.”

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Filed Under: Economic Development, Elected Officials, Press Release, Spending, State Budget, State Economy, State Government, Taxation Tagged With:

It’s the Same Old Song

January 11, 2012 By Leave a Comment

By Jonathan Butcher, Goldwater Institute

In 1965, The Four Tops released a follow-up to their hit single, “I Can’t Help Myself (Sugar Pie Honey Bunch)” with a number called “It’s the Same Old Song.” It was, actually, nearly the same song as “Can’t Help Myself,” admits singer Abdul “Duke” Fakir, as he and songwriter Lamont Dozier were in a rush to produce something and “reversed [‘Can’t Help Myself’] with the same chord changes” to write “Same Old Song.”

In Arizona, we’re hearing the same old song about more money for education, now in the form of continuing the “temporary” 1 percent sales tax.

The Arizona Education Network says, “Studies show Arizona continually lags among the bottom of all states in terms of public education funding and academic performance,” as though speaking of money and student achievement in the same breath will somehow link them together.

As history shows, increases in education funding do not lead to higher levels of student achievement. In fact, education funding has been on the rise for decades with nothing to show for all that additional money.

Between 1985 and 2007, federal school spending increased 138 percent, and per-pupil expenditures around the country have more than doubled since 1970, says Stanford University’s Eric Hanushek.

In Arizona, reading scores for 4th graders on the Nation’s Report Card have changed little in the last decade, despite a 47 percent increase in total spending per pupil between 2000 and 2009. Interestingly, even when funding ticked down 4 percent between 2009 and 2010, not only does that make but a small dent in the earlier increases but scores did not change. Suggestions that Arizona’s low achievement levels are a result of funding levels ignore these findings.

Lawmakers should follow Gov. Jan Brewer’s lead and mark Arizona as the nation’s leader in education reform, as the East Valley Tribune reported last week, and keep the state committed to sound fiscal practices and a balanced budget.

Jonathan Butcher is education director for the Goldwater Institute.

Learn more:

East Valley Tribune: Brewer wants to revamp public education funding, expand private school options

Rolling Stone: The Four Tops Turn Fifty

Arizona Education Network: Arizona Voters Support Sales Tax Continuation to Fund Public Education

National School Choice Week

Arizona Auditor General: Arizona School District Spending

Filed Under: Arizona Politics, Education, State Budget, State Economy, State Government, Taxation

No surprise: Jobs and money go where taxes are low, and Arizona can do better

January 4, 2012 By 2 Comments

by Stephen Slivinski
Goldwater Institute

Every year, people and their income move between states. They move for a number of reasons, but there’s ample evidence that cost of living and its relationship to tax burdens are a factor.

The Internal Revenue Service publishes data that shows the movement of income and people between the states by tracking federal “adjusted gross income” flows. A database, created by The Tax Foundation in Washington, D.C., lets the public compare states.

Arizona fares reasonably well. The state saw a net influx of about $2.89 billion in income since the start of the recession at the end of 2007 through the end of 2010. Perhaps not surprisingly, the largest chunk – just over 20%, or $688 million – came from people fleeing California. The next two biggest chunks came from the basket-case economies of Illinois ($380 million) and Michigan ($294 million). People clearly see Arizona as a better place to live and work than states with high tax burdens and winnowing job prospects.

But we are losing income to other states as well. The biggest out-migration of income for Arizona in that period ($170 million) went to Texas, a state that, along with Nevada and Colorado, grabbed more income from California than we did. The first two states have no income tax and the third has a flat income tax.

Taxes aren’t the only thing affecting migration. But they are one of the most direct tools state policymakers can use to influence job creation and economic opportunity. Arizona legislators can and should make the state attractive in as many ways as possible to compete with other states that may have more natural advantages than we do. Eliminating the income tax would catapult Arizona ahead of neighboring states that we are competing with for jobs.

Stephen Slivinski is senior economist for the Goldwater Institute.

Learn More:

Goldwater Institute: The Tax Man and the Moving Van: Fiscal Policy and State Policy Shifts

Tax Foundation: State to State Migration Data

Filed Under: Economic Development, Economics, State Economy, State Government, Taxation

Ally Miller: Pima County Board of Supervisors Anti-Business Decisions Continue

December 19, 2011 By 2 Comments

FOR IMMEDIATE RELEASE: December 17, 2011
CONTACT: Dean Miller

On Dec. 13, 2011, Pima County Board of Supervisors handed down a decision to appeal Raytheon property tax valuation as determined by the AZ State Board of Equalization. “This is yet another example of the short sighted and irresponsible behavior by the members of this board” stated Ally Miller, a candidate for District 1 Board of Supervisors in attendance at the meeting.

Pima County Board of Supervisors voted 4-0 to appeal the decision approved by the AZ State board of equalization to lower the assessed value of properties owned by Raytheon Missile Systems in Tucson. Supervisor Richard Elias was absent.

The appeal submitted by Raytheon, based on the valuation of similar properties was approved by the State board of equalization and resulted in valuations lowered from approximately $46.4 mil to $25.6 Mil for 2011 on 19 parcels identified on the board agenda. The 2011 change in valuation would result in a loss of approximately $571 thousand in tax revenue.

Raytheon reportedly pays $130 million in state and local taxes annually.

“Workers in this community are desperate for jobs yet the Board of Supervisors continues with their anti-business practices spending taxpayer money on litigation which could potentially alienate the largest private employer in our community.” Miller added.

“Did the members of the Pima County Board of Supervisors forget about the recent move by Raytheon to build a facility and locate approximately 300 high paying jobs to Huntsville, Alabama?” asked Miller.

After a trip to Huntsville earlier this year it was reported Supervisor Bronson determined tax incentives and fast tracking the development process were among the reasons Raytheon decided to build this facility in Huntsville versus Tucson.

For more information, contact Ally Miller campaign office or visit the campaign website at www.allyforsupervisor.com

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Filed Under: Campaigns & Elections, County Government, Press Release, Taxation Tagged With: ,

Jeff Flake: Payroll-tax gimmicks hinder serious reform

December 19, 2011 By 3 Comments

By Jeff Flake (reposted from The Arizona Republic)

House Republicans have worked hard this year to prove to Americans that we recognize the extent of our fiscal crisis. With tremendous political risk, Republicans passed a budget crafted by Budget Committee Chairman Paul Ryan that made tough, but necessary, decisions to corral out-of-control federal spending and bring about much-needed reforms to entitlement programs.

So after leading by example by embracing the Ryan budget, why are Republicans ending this year’s congressional session by passing another “now-you-see-it, now-you-don’t” temporary payroll-tax holiday? Because politics is dictating policy.

A year ago, Americans were told that a temporary reduction in payroll taxes would jump-start economic growth, improve the economy and put people back to work. This was misguided from the beginning. To begin with, temporary tax reductions don’t improve economic conditions. And make no mistake, this temporary reduction was always sold as a 12-month tax holiday. When short-term tax cuts expire, taxes go back up and the net result is effectively a non-stimulus. Don’t just take my word for it. Economic growth has been hovering between an anemic 1 and 2 percent.

How the payroll-tax holiday is “paid for” is another example in the art of congressional budgeting. Senate Democrats favored raising taxes on high-income earners as a spending offset. But they couldn’t get 60 votes in the Senate to pass it (thank goodness). House Republicans, on the other hand, opted for subterfuge, telling Americans that budget cuts will pay for a new payroll-tax holiday. Non-binding budget cuts that is, spread out over 10 years. That’s right, Congress is proposing to pay for one year’s worth of non-stimulative tax cuts with 10 years’ worth of budget cuts. Don’t get me wrong, I’m all for budget cuts. But budget cuts that kick in years from now aren’t really budget cuts. We’ve been down that road before.

Because payroll taxes fund the Social Security Trust Fund, another short-term tax holiday exacerbates the insolvency of the fund. It is pretty remarkable to see Democrats, self-proclaimed protectors of Social Security, so forcefully embrace blowing a huge hole in the Trust Fund, and Republicans, fierce critics of deficit spending (at least rhetorically), so willing to resort to gimmicks to mask larger deficits.

More than anything, the economy needs serious tax and regulatory reform, reform that would result in a permanent reduction in marginal rates for all income earners brought about by removing credits, deductions, loopholes and tax expenditures (like that envisioned by the Simpson-Bowles Commission). Ideally, capital-gains taxes would be eliminated for everyone, but at a minimum, the tax rates cannot increase.

America’s corporate-tax rate, currently the second-highest in the world, should immediately be reduced to 25 percent. Permanent reforms like these would unleash a torrent of economic activity and move the economy and unemployment rate in positive directions. Another round of a nickel-and-dime “now-you-see-it, now-you-don’t” tax holiday is misguided.

Jeff Flake is the U.S. representative for Congressional District 6, which includes parts of Mesa and Chandler and all of Gilbert, Queen Creek and Apache Junction.

Filed Under: Elected Officials, Federal Budget, Federal Government, Legislation, Press Release, Spending, Taxation Tagged With: ,
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