State Capitol News
2:56 pm
Tue February 15, 2011

State Lawmakers Moving to Approve Extensive Tax Cuts for Business

Phoenix, AZ – The question, quite simply, comes down to whether lawmakers are
willing to make a leap of faith. The package will reduce tax
collections this coming year by more than $38 million -- and by
$538 million a year when fully implemented in 2018. But Rep. Jack
Harper said there really won't be any lost revenues.

(Let me explain the theory of supply-side economics. Businesses
see that taxes are going to be cut. They decide to make an
investment. They grow jobs. So while there's there's not an
immediate hit to the general fund, businesses thinking about what
state might I move to because of the communism of the state I'm
in, they might decide that Arizona's an attractive place to be.)

Rep. Steve Farley said he's not willing to cut taxes now in the
hope that supply side economics works.

(I think that we need to be more concerned with pay as you go and
being able to make sure these things are paid for, as opposed to
doing what seems to be here which is to go ahead and charge it on
the credit card now because we need it and hopefully have enough
income to pay it off when the bill comes.)

But Houss Speaker Kirk Adams said the state needs to take that
risk.

(The biggest gamble we can take is to do nothing at all as it
relates to our economy. That we have to begin to make positive
policy actions to create jobs in the state of Arizona. If we
don't then we are at the mercy of our natural business cycle
which is reliant on real estate and construction.)

A final roll-call vote on the package is set for Wednesday. For
Arizona Public Radio this is Howard Fischer.