AD: That One Thing - Lowering taxes to grow the economy unites both sides of the aisle - Goldwater Institute: - Oct 11, 06

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That One Thing - Lowering taxes to grow the economy unites both sides of the aisle
By Goldwater Institute: Noah Clarke (10/11/06)

Policymakers have a wide variety of opinions on just about every issue. But there is one thing they all seem to agree on--cutting taxes attracts business.

For example, policymakers agree that a surefire way to spur economic growth is through tax cuts and credits. Just look to the Arizona Enterprise Zone program for proof, it was continued this year with near unanimous legislative support. It continues income and property tax relief within the zones to improve “the economies of areas in the state with high poverty and unemployment rates.”

Policymakers also give tax credits to businesses they want to encourage, from solar energy to motion pictures to Intel. It seems that whenever attracting business is a priority, lower taxes are in order. Just two weeks ago, the City of Phoenix announced that it will waive property taxes on a new downtown development.

Why not extend these tax advantages across the board? Arizona’s corporate income tax rate is one of the highest in the West. Lowering the rate to a regionally competitive level, or better yet zero, would go a long way toward keeping Arizona open for business.

Noah Clarke is an economist with the Goldwater Institute Center for Economic Prosperity.

http://www.goldwaterinstitute.org/article.php?/1140.html

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