State Capitol News
3:35 pm
Thu January 28, 2010

House votes on package of tax cuts

Phoenix, AZ – The plan cuts corporate income taxes by about 30 percent, with a
10 percent cut in individual income taxes, permanent repeal of
the state property tax and shifting some of the burden of local
property taxes from businesses to homeowners. Rep. John Kavanagh
did not deny that shift. But he said the solution to the state's
problems is not funding more welfare programs with tax dollars.

(I believe that the solution is to create more jobs by not
overburdening the job-producing private sector with more taxes,
but lowering their taxes so they can create more jobs, so people
don't have to go on AHCCCS but instead get health insurance
through their employers. So that we don't have to vote for
extensions of unemployment benefits because these people are now
productively employed.)

But Rep. Tom Chabin said the problem with this measure is moving
some of the tax burden to homeowners in the name of job creation.

(We have 50,000 homes in foreclosure in Maricopa County. And its'
pretty clear they don't have the capacity to pay the tax.)

House Speaker Kirk Adams, who crafted the measure, said the tax
cuts would be phased in over four years starting next year. The
measure now goes to the Senate. For Arizona Public Radio this is
Howard Fischer.