State Capitol News
9:09 am
Sat February 13, 2010

Reports show tax cuts package could into revenues

Phoenix, AZ – The measure crafted by House Speaker Kirk Adams includes a 28
percent cut in corporate income taxes, slicing individual income
tax rates by 10 percent across the board and eliminating the
state property tax. The report by the nonpartisan legislative
budget staff estimates when the plan is fully implemented the net
reduction in dollars is close to $942 million a year. But Adams
said that figure is misleading because it doesn't consider the
impact that lower taxes will have in creating new jobs.

(We are in an uncompetitive position. The impact that this bill
in its totality has on Arizona's econonmy is not calculable at
this time. But we know that states that have these policies in
place do much better than we do, like Texas for example.)

But Assistant House Minority Leader Kyrsten Sinema said Adams is
making assumptions about broad-based tax cuts that she believes
are unrealistic.

(If you do some lower taxes that are targeted in certain ways,
yes, yes. You'll bring in new jobs. But just randomly cutting
some things across the board, no. There's no evidence whatsoever,
either at the state or the national level, that shows that that
helps you bring in more jobs or more revenues streams to the
state.)

The measure, which already has been approved by the House, now
awaits Senate action. For Arizona Public Radio this is Howard
Fischer.