State Capitol News
2:40 pm
Mon February 14, 2011

Brewer and Legislative Leaders Unveil Plan to Slash Business Taxes

Phoenix, AZ – The plan is based on the premise that the state's tax structure
is a disincentive to companies relocating to or expanding here.
Key elements include reducing business property taxes by about 10
percent, cutting corporate income taxes by more than a quarter,
and even allowing some multi-state firms to escape paying state
income taxes at all. House Speaker Kirk Adams said that makes
sense.

(When you have companies like Intel and Boeing and Raytheon that
are incentivized now to open up their new product lines here, not
in Huntstille, Ala., where Raytheon recently did, the effect on
all the businesses in that area, not even counting the effect on
local school systems, property taxes, sales taxes and so forth,
is tremendous.)

The move to attract business comes as the state is getting lots of
national publicity for many measures aimed at illegal immigrants.
Adams said the state does need to pay attention to its image.

(But I'll tell you this: When their CFO sits down with them, he
puts the green eyeshade, he starts calculating the numbers, and
he says, this is what we can do in Arizona now, that will have
more impact than anything at all. Because that CEO has a
fiduciary responsibility to his shareholders to get the best
return on their investment.)

Plans are to approve the package this week. For Arizona Public
Radio this is Howard Fischer.