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

Arizona nurse sentenced to four years in prison for selling ecstasy, license revoked

PHOENIX - A judge sentenced a former Arizona nurse Wednesday to four years in prison for selling ecstasy. Brent Forrest, 41, was sentenced in …

Published: July 27, 2016 - 3:48 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Here's Why

Wednesday night the Democratic National Convention will feature a stunning lineup of political and social leaders, not to mention tremendous c…

Published: July 27, 2016 - 3:49 pm @ http://www.thenewcivilrightsmovement.com/davidbada…

What You Collect: The Ordinary and the Odd

The New Museum’s summer show “The Keeper” explores the complex relationships we have with the things we collect. Why do we amass certain objec…

Published: July 27, 2016 - 3:18 pm @ http://www.nytimes.com/interactive/2016/07/24/arts…

Addressing global water crisis with 33 Buckets

From push-button parking to hands-free autopilot, self-driving technology has arrived to the U.S. auto industry as developers push to deliver …

Published: July 27, 2016 - 3:19 pm @ https://asunow.asu.edu/20160721-solutions-addressi…

Can a Major Minneapolis Transit Project Survive Regional Dysfunction?

The Twin Cities’ Orange Line bus rapid transit project ought to be a slam dunk. According to Sean Hayford O’Leary at streets.mn, it will provi…

Published: July 27, 2016 - 2:50 pm @ http://www.streetsblog.net/2016/07/27/can-a-major-…

DEA, ICE, police conducting raids in Tucson

Multiple Tucson businesses were raided by authorities Wednesday morning, as part of a joint operation with the U.S. Drug Enforcement Agency. "…

Published: July 27, 2016 - 2:23 pm @ http://tucson.com/news/local/crime/dea-ice-police-…

Kim Conley and Dathan Ritzenhein to Lead Star-Studded American Field at 2016 TCS New York City Marathon on Sunday, November 6

Media center Press releases July 27, 2016 at 4:00am Two-time Olympian Conley will join previously announced NYRR Team for Kids Ambassador Moll…

Published: July 27, 2016 - 2:20 pm @ http://www.nyrr.org/media-center/press-releases/ki…

Dark smoke hangs over scenic stretch of California coast

Previous Next The blaze that has destroyed 20 homes was burning inland over a ridge and was not for the most part visible on the Pacific Coast…

Published: July 27, 2016 - 2:17 pm @ http://www.foxnews.com/us/2016/07/27/dark-smoke-ha…

Arizona Congressman Gallego To Address Veterans Issues On Day 3 Of DNC

Published: Wednesday, July 27, 2016 - 11:02am Arizona Congressman Ruben Gallego is one of the featured speakers on day three of the Democratic…

Published: July 27, 2016 - 2:17 pm @ http://kjzz.org/content/341474/arizona-congressman…

Gunman Barricaded at Senior Center In Tempe, Arizona; SWAT on Scene

ARIZONA — Police In Tempe, Arizona were responding to an active shooter and barricade incident at the Westchester Senior Center Wednesday. The…

Published: July 27, 2016 - 1:53 pm @ http://breaking911.com/breaking-active-shooter-at-…

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…