Nobel Solutions – Tapping Local Expertise

Dr. Edward C. Prescott

FOR IMMEDIATE RELEASE: March 5, 2009

Nobel Prize-winning economist says a tax increase is a “mistake”

(STATE CAPITOL, PHOENIX) – Senate Majority Leader Chuck Gray, R-Mesa, is vehemently opposed to Gov. Brewer’s tax increase proposal and has the support of a Nobel-Prize winning economist who offered to meet with senators to come up with real solutions.

“I’m not voting for any taxes, and I don’t think that any of the caucus members or the majority of the Republicans are going to vote for new taxes,” Gray said.

Gray discussed the proposal with Dr. Edward C. Prescott, an Arizona State University Regents’ professor and Nobel Laureate in economics who agreed that a tax increase would be detrimental to Arizona’s economy.

“If you like depressions, it’s a good thing,” Prescott said. “Brewer is making a big mistake if she increases taxes….we need to do what is best for the people of Arizona.”

Prescott agreed to meet with Senate members to share his knowledge and develop real solutions to rectify Arizona’s economic problem.

Responding to the governor’s comments that once the Legislature saw ‘factual information’ they couldn’t be in denial any longer, Gray said, “I want to know where she is getting her facts. Senate Republicans know that tax increases are bad for the economy; that is our fact.”


Comments

  1. Clearly this man is a genius and is far more intelligent that the folks Gov Brewer has surrounded herself with. I said it on an earlier thread, but Jan should fire those political hacks who just want to make money off her and hold regain her core beliefs and follow the advice of true geniuses like Dr. Prescott.

    Remember Jan is proposing a $1,000,000,000 tax hike, it’s so Jane Hull of her!

  2. Veritas Vincit says

    Veritas agrees.

  3. Hometown Guy says

    The governor has access to Nobel prize winning economists and decides to listen to Chuck Coughlin.

  4. Hey, Chuck is just trying to scratch out a living with his version of Weekend at Bernies 3. Give the guy a break.
    Just because Prescott has a Nobel doesnt mean he has any answers. Lets see how he did in the stock market in the past year if he is so smart. The real problem is stupid govt. Looking for a “smart” answer just cause its smart isnt that effective, just look at all the “smart” people telling Obama to take over the banks.
    The real answer if for someone to show leadership and clean out the dead wood in state govt, focus on core services and lean operations. Walk into any state office and you will find mostly clueless people that can barely function much less solve any problems. They are so poorly paid that there is very little talent, or motivation to get things done.
    The private sector has increased productivity by leaps and bounds over the last 10 years and govt has just been flat. Do some real improvement in operations so money isnt wasted. Right now, the legislature thinks they can solve the budget problem by picking a number out of the air and then washing their hands of accountability and saying “why isnt the govt working?” we gave them some money.
    I am not saying they should increase spending, but they should have the balls to give direction to govt components on how to meet those budget numbers. Maybe if some of the legislators had some knowledge about how all that govt stuff works, they could solve problems. Harper did it – at least he did something. The rest of the legislature wrings their hands and pontificates about cutting spending but they have such minimal understanding of the nuts and bolts that they have no idea of why things are not working.
    Nobody forced any of those legislators to take the job. They all asked the voters to send them there, and they do very little in the way of preparation to take the responsibility to get something done. I am a tax payer, show me results not excuses.

  5. Please someone! Hit the “RESET” button!

  6. Republican does not mean Conservative says

    Geez, somebody finally decided to tap the intellectual wealth our state possesses. I believe Prescott received his Nobel Prize for work on studying business cycles. He is undoubtedly a smart individual and I’m glad he’ll be working with state legislators. Any decent economist can tell you that raising taxes in the middle of a recession is a recipe for depression.

    BTW…Ronald, no economist claims to be able to predict the stock market. Not Prescott, not anyone.

  7. Prescotts nobel prize is for studying business cycles? His purpose is to convince Brewer et al that taxes are bad? My landscaper can explain that higher taxes are bad. How does that help?
    Cant believe that I am giving “Team Brewer” any slack, but some economist isnt going to descend from on high like the obama messiah and solve the budget crisis.
    By the way, the Gov and the legislators get paid to do this job and they should deliver solutions, regardless of getting advice from some “genius”. Geez, this is Arizona, we dont need some egghead explaining the joys of business cycles, we need leaders with backbones.

  8. Rep does not mean conservative – Maybe the voters should tap some of the intellectual wealth of our state and elect smarter people that can get the job done.
    A large part of the current crisis came from the Voter mandated spending – which was the result of the voters losing confidence in the loser legislature that couldnt do an adequate job on their own.
    If they had been real conservatives and spent wisely and sold the message right, that Voter initiative would never have passed.

  9. Republican does not mean Conservative says

    Ronald,

    Don’t confuse my praise for Prescott with thinking that I believe he is the answer to all of our state’s problems. I never insuated that.

    That said, it seems to me that you ignorant to think that having a renowned economist offering to help come up with real solutions is a bad thing. You blame our legislators and there past mistakes for our current mess. Shouldn’t they then receive help from someone that knows more about the subject than most?

  10. GOP Mom, Esq. says

    The greatest percentage of growth in the state budget came from AHCCCS and health care related costs. There is little to NO opportunity to balance the budget unless the voter-mandated protections on spending increases is rescinded. Increasing taxes is a mistake; rescinding the voter-mandated protections should be the goal. Also, examinging performance standards (assuming any exist) within each agency should help evaluate how to cut excess. Excess exists within EVERY agency. But that takes time, a thoughtful approach and discipline, NONE of which I’ve seen exercised by the Brewer Administration. Raising taxes is the laziest and most destructive approach in attempting to reverse Arizona’s budget crisis.

  11. Average Joe says

    Sorry to say but I’m afraid the “wealth takers” have reached critical mass in our country at the expense of the “wealth producers”. Without our Constitution to protect us it’s a lot like two wolves and a chicken voting on what to have for lunch.

    Unfortunately many politicians have learned the way to get elected in today’s environment is to promise more freebies to the populace than your opponent does.

    Any time someone talks about “paying your fair share” you’d better put your hand over your wallet.

  12. Iris Lynch says

    Sometimes there simply is no GOOD solution. The culprit has left the scene of the crime and gone on to get us by death at the border. In the meantime, back at the ranch, we are going to start pumping our own water and washing our clothes on the washboard. Too bad.

Trackbacks

  1. […] the cavalcade of anti-tax stars continues.  Now, a Nobel Prize winner is speaking out as well as Tom Patterson.  Still no solutions, but hey, its fun that a lot of smart guys have been […]

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