State Capitol News
3:11 pm
Tue May 11, 2010

Brewer Says She Will Not Support Broad Based Tax Cuts for Business

Phoenix, AZ – Brewer is out rounding up support for Proposition 100 which would
hike the state sales tax by a penny for three years, raising an
estimated $1 billion a year. But House Speaker Kirk Adams and
some Republican lawmakers want a package of income and property
tax cuts for business they say is needed to stimulate the
economy. That bill with its $950 million a year price tag failed
in the Senate. But Brewer noted that Adams has vowed a new effort
next session.

(The Legislature is the Legislature. They could do what they
wish. But they surely are accountable to the people that elect
them.)

Brewer dodged questions about whether she will veto such a bill
if it reaches her desk.

(I think everybody knows where Jan Brewer stands. I stand yes on
Proposition 100, a temporary sales tax for three years.)

It was only after the press conference was over that Brewer, away
from the microphones, made a clearer statement. She said -- quote
-- there is no way that we're going to go out and ask the people
of the state of Arizona to vote for a temporary tax and come back
and do business tax cuts. Proposition 100 also picked up what
could be an important endorsement. Earlier this year Democrat
Terry Goddard said he couldn't support asking voters to hike
taxes on virtually every product they buy when the tax code is
full of exemptions for things like hair care and even dog
grooming. Goddard said he still questions those loopholes.

(I think the better approach would have been to put all the
loopholes on the table and decide how to bridge the budget gap by
closing loopholes rather than imposing a new tax.)

But Goddard said that given the condition of the state's
finances, this is the only choice -- and only chance -- voters
have to save public education which will take a $428 million hit
if the measure fails.

(I deplore the process. But at this moment I don't know what
other choices the voters have. It's a very bad situation. I think
it needs to be remedied with more substantive tax reform in the
future. But right now if it's unsuccessful I know it puts
education into a world of hurt and the damage will be very, very
longlasting.)

Goddard's conversion leaves Brewer's three Republican primary
foes as the only gubernatorial hopefuls against the levy. For
Arizona Public Radio this is Howard Fischer.