An infamous immigration law and some fallacious comments about immigrant beheadings have marked the few years of Gov. Jan Brewer’s time in office. However, she might finally be heading down the right track.
On Nov. 30, Brewer unveiled her ambitious economic plan to expand tax credits for businesses that do research in Arizona, provide cash to corporations and manufacturers that want to relocate to Arizona, and get rid of capital gains for small businesses in Arizona that make investments.
The essentials of the plan are extremely beneficial to the Arizona economy. Cutting taxes for corporations and small businesses will not only generate more economic growth but also will eventually reduce unemployment significantly. At least Brewer understands that in times of economic trouble, raising taxes won’t help the economy.
The most beneficial part of the plan is her intent to increase tax credits to businesses that want to relocate to Arizona. Not only is this highly advisable at this point, but it will result in a noteworthy shrink in state regulations, which is something that most businesses find extremely attractive and enormously profitable.
Critics of the plan, most notably Democrat Chad Campbell, the next House minority leader, claim that Brewer’s proposal to cut taxes for businesses will undermine education funding in Arizona.
While this might be true to an extent, it’s an extremely misguided analysis. Education funding is at all-time highs all around the country, and yet Arizona, in particular, continues to have one of the lowest-ranked education systems in the country.
Will putting more money into a flawed system increase our ranking? It’s not only doubtful, but also extremely unlikely.
Education is a separate issue, yet this is all critics could come up with when analyzing Brewer’s plan.
However, the plan does have an Achilles’ heel. Brewer intends to reduce the corporate income tax from 7 to 5 percent — a change that won’t come into effect until the middle of 2013, when the sales tax increase expires.
This is not only illogical but also potentially dangerous. Brewer has no idea what the economic outlook of Arizona will look be in 2013. Proposing a change this far in advance could be more harmful than helpful. The sales tax increase, which voters approved over the midterm election, will increase the sales tax by 1 cent in an effort to help balance the state budget.
But Brewer might have finally gotten it right — at least on the economic front. Her plan is not only ambitious but could very well put Arizona at the forefront of America’s economic growth.
If only Arizonans could see past her snide remarks about beheadings and her monumental slip-up during her infamous televised debate with Democratic candidate Terry Goddard.
Send Sean your comments at spmccaul@asu.edu
