Taking a look at Arizona’s economy, version 2.0 - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Taking a look at Arizona’s economy, version 2.0

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Wednesday, May 30, 2012 2:58 pm

The two years of the 50th Arizona Legislature will go down in the history books as the years when the Legislature hit reboot on the Arizona economy and turned what was a basket case into a best case.

Consider where we were in 2010. We had a structural deficit, which was about the worst in the nation. We had just lost 300,000 jobs in the Great Recession. We were essentially California with a smaller economy and drier weather.

The past two years have been marked by job-creating reforms in taxes, regulations, civil justice and education. Our budget is now in balance.

Arizona’s tax system is now a model for other states. The centerpiece of last year’s tax package was a 30 percent phased-in reduction of our corporate income tax rate. The package also included a phased-in 100 percent elective sales factor for manufacturers who produce in Arizona but sell most of their goods outside of our borders. The property assessment ratio for businesses will be reduced to 18 percent. Our already best in class research and development tax credit was strengthened.

The centerpiece of this year’s reform is a phased-in 25 percent reduction of our capital gains tax. Also important was taking the treatment of net operating losses and moving us from worst to first: five years to a new 20-year policy. Also passed this year, a new law that provides for a 100 percent elective sales factor for service industries located in Arizona, a critical move given the trend of commerce moving to the Internet.

Arizona has also signified its commitment to attracting and retaining world-class manufacturing projects by allowing the government to share in the financing of necessary infrastructure for large, high-dollar projects that create a sudden and significant need for public infrastructure. And another element of the 2012 tax package expanded to other manufacturers a tax credit once only available to the renewable energy industry.

But tax reform is only part of the story.

When Gov. Jan Brewer first took office, she instituted a regulatory moratorium that put up a stop sign on new rules and regulations for business to navigate. The Legislature in 2010 followed with its own regulatory reform package that, among other things, ensured that new state rules weren’t more stringent than corresponding federal law.

Brewer and the Legislature continued cutting red tape in 2012 with the signing of HB 2744, which will ensure that new rules are grounded in sound science, and HB 2199, which encourages businesses to discover and correct environmental problems by providing limited administrative and civil evidentiary protections.

Arizona also now has one of the better legal environments, ensuring that businesses will spend more time on investment and innovation, not fending off bogus lawsuits.

Consider these legal reforms from the 50th Legislature: Appeal bonds reform, ensuring that defendants won’t go broke trying to appeal a decision; a move to the Daubert standard over the Frye standard to ensure that scientific evidence introduced in court cases meets stringent standards; a better juror compensation law so jurors won’t face economic hardship in doing their civic duty; a law to reduce landowners’ liability in trespassing cases; a bill to make it easier to recover attorneys fees in frivolous lawsuits; and a law to shield businesses from punitive damages in product liability cases when the product in question was made in accordance with all applicable government standards.

All of this represents an unprecedented commitment to fostering a legal environment that attracts jobs and businesses.

The best tax, regulation and tort environment will only get a state so far if it doesn’t have a ready pipeline of qualified workers ready to enter the workforce and contribute to the economy.

So on the education front, we are now assigning easy-to-understand letter grades in school assessments and have tightened standards with new dollars to make sure our third-graders are reading. Bills signed into law this year make it easier to get qualified STEM teachers into the classroom.

In the higher education arena, Arizona is now moving towards a performance pay model to reward universities for graduating students.

Meanwhile, Chief Executive Magazine says Arizona has a top-10 business climate.

The world is taking notice of the Arizona turnaround. The governor and Legislature deserve our thanks.

• Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry.

More about

More about

More about

  • Discuss

OVERTIME: Results, highlights and photos from Week 5

SOUTHERN, AZ (Tucson News Now) - It's hard to believe but this week marked the halfway point of the high school football regular season. Week …

Published: September 25, 2016 - 7:45 am @ http://www.tucsonnewsnow.com/story/33162966/overti…

13th Floor Haunted House in Phoenix now open

The 13th Floor Haunted House in Phoenix is now open. The 13th Floor Haunted House is spooking guests with 2 new shows: a throwback to the clas…

Published: September 25, 2016 - 6:45 am @ http://www.fox10phoenix.com/news/arizona-news/2075…

Mercury players meet with Phoenix police; will keep kneeling

NEW YORK (AP) — Mistie Bass, Kelsey Bone and their Mercury teammates met with Phoenix police a few weeks ago after practice. It was an eye-ope…

Published: September 25, 2016 - 6:47 am @ http://www.nydailynews.com/sports/basketball/mercu…

How Mexico Saves Its Citizens from the Death Penalty in the U.S.

W hen the body of 25-year old Lesley Hope Plott was found lying in a ditch in Russellville, Ala., in February of 2013, police had little troub…

Published: September 25, 2016 - 6:14 am @ https://www.themarshallproject.org/2016/09/22/how-…

Farewell Desks, Here Come the 'Starbucks Classrooms'

While many iconic features of traditional classrooms have been sidelined over the past decade – less blackboards,  more whiteboards, bulky tex…

Published: September 25, 2016 - 6:14 am @ http://neatoday.org/2016/09/23/ditching-classroom-desks/

WSU students balk at paying higher fees to balance athletic department budget

Washington State University’s new president has introduced a plan to balance the budget of the school’s insolvent athletics department. But a …

Published: September 25, 2016 - 5:44 am @ http://www.spokesman.com/stories/2016/sep/23/wsu-s…

DPS, Tempe PD investigating attempted carjacking near Southern and the Loop 101

TEMPE, AZ - The Arizona Department of Public Safety says they’re investigating an assault and an attempted carjacking with several suspects ne…

Published: September 25, 2016 - 5:42 am @ http://www.abc15.com/news/region-southeast-valley/…

Police: Person walks into Phoenix Fire Department after being shot

PHOENIX - Police are investigating after a person walked into the Phoenix Fire Department with a gunshot wound. Police were called to the fire…

Published: September 25, 2016 - 4:46 am @ http://www.abc15.com/news/region-phoenix-metro/cen…

The banning of books in prisons: 'It's like living in the dark ages'

Dan Slater’s new non-fiction book Wolf Boys recounts the story of two Mexican-American teens in Texas seduced by the violent cartels across th…

Published: September 25, 2016 - 4:16 am @ https://www.theguardian.com/books/2016/sep/25/the-…

Obama's Pen and Phone Have Saddled Taxpayers with 25 Regs that Cost $348.7 BILLION

Obama has wreaked havoc on the economy.   This report highlights 25 regulatory actions that have cost American taxpayers $350 BILLION dollars.…

Published: September 25, 2016 - 4:14 am @ http://minutemennews.com/26411-2/

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…