The Arizona Free Enterprise Club

Thanks to Our Supporters

Steve Voeller — Wed, 09 May 2012 16:41:11 +0000

Since our first session in 2006, the Club has successfully lobbied to reduce personal income taxes (10% cut for all brackets), cut the corporate tax rate (from 7% to 4.9%), reduce both residential and commercial property taxes, and now cut the capital gains tax rate by 25 percent.

Session Ends with Capital Gains Tax Cuts

Steve Voeller — Tue, 08 May 2012 18:17:47 +0000

The House and Senate sent to Gov. Brewer a bill to cut Arizona’s capital gain tax. Brewer is expected to sign the bill this week.

The capital gains tax cut would allow taxpayers a 25% subtraction from how capital gains are currently taxed (as regular wages). So if you’re in the 4.54% tax bracket, realized capital gains would be taxed at 3.4% rather than 4.54%.

The Arizona Free Enterprise Club for two years has pushed to have capital gains eliminated, but this 25% subtraction is a good first step.

Session Ends and Film Tax Subsidies Fail

Steve Voeller — Tue, 08 May 2012 18:05:23 +0000

The legislative session came to a close and the legislature saw fit not to send a film subsidy package to Gov. Brewer, who was expected to veto.

Movie Subsidies Still Breathing

Steve Voeller — Thu, 12 Apr 2012 17:16:38 +0000

The film tax credit bill (aka subsidies for movie producers) is still alive, even if barely. Seems some in the legislature are sympathetic to Sen. John Nelson’s desire to ensure one industry become the beneficiary of massive tax breaks at the expense of everyone else. It’s too bad.

There is absolutely no reason for this bill to move. This subsidy has yet to receive even a simply majority of Republican support in any forum it has been in. It only received 7 votes among the Senate’s 21 Republicans. The bill never even got a vote in the House because it could not garner one Republican vote in the committee to which it was assigned.

Given that the GOP controls both the House and the Senate, they should inform Senator Nelson to pick up another cause.

Club Opposes New Property Tax

Steve Voeller — Thu, 12 Apr 2012 17:07:04 +0000

The Club opposed HB2060, which would have allowed Paradise Valley and Litchfield Park (among other small towns) to implement a new property tax.

The bill, pushed by the town of Paradise Valley, initially would have allowed the Town Council to implement the tax without a vote of the people. A subsequent amendment required a public vote, but that change simply wasn’t enough to garner our support.

Property taxes in Arizona are subject to limits on how much taxes can increase. This bill would have placed this tax outside those constitutional limits.

Statement on Quality Education and Jobs Initiative

Steve Voeller — Mon, 12 Mar 2012 20:05:03 +0000

March 9, 2012

In response to the initiative filed today that would establish a new one-cent sales tax increase (once the temporary one-cent tax expires), Steve Voeller, president of the Arizona Free Enterprise Club released the following statement:

“This initiative is the most egregious spending initiative in the history of spending initiatives. Not only does it earmark funds in perpetuity for government spending, it prohibits the legislature from decreasing spending elsewhere. Talk about tying the hands of the legislature. They should have included a provision to require Santa Claus to annually deliver the bags and bags of cash that will be required to keep the rest of government afloat.”

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Film Tax Credit Testimony

Steve Voeller — Thu, 08 Mar 2012 22:14:26 +0000

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Consolidating Elections – HB2826

Steve Voeller — Thu, 16 Feb 2012 16:14:13 +0000

HB2826 would consolidate elections so that all elections occur in even number years on a regular election day. That’s a good idea. Opponents of the bill, including Rep. Cecil Ash, argue that local governments should be allowed to have their elections whenever they wish. Looking at turnout numbers city elections vs congressional elections, one can understand why local government elections are often called “invitation only” elections.

HB2789 – Should the Legislature Set Policy or the Corporation Commission?

Steve Voeller — Tue, 14 Feb 2012 23:02:22 +0000

Rep. Debbie Lesko (R-Phoenix) is sponsoring a bill that would from here on out prohibit the Arizona Corporation Commission from establishing policy – in most cases energy policy – and instead leave the policy making duties to the legislature.

Opponents of the bill state that establishing utility rates is, after all, the duty of the Corporation Commission. They are right. However, opponents of the bill also state that establishing the fee consumers must pay in order to obtain a certain percentage of energy from renewable sources falls within the commission’s rate-making ability.

They are wrong. Crafting expensive energy policy and the rates consumers must pay is backward. After all, the rate would not be higher if the commission didn’t establish the expensive energy policy.

Even without this bill, however, the legislature has options. If the commission insists on doing the legislature’s job, the legislature could force them to do so with less funding from the state.

Arizona and the Film Tax Credit Sequel

Steve Voeller — Thu, 09 Feb 2012 23:24:16 +0000

They are at it again. After multiple bad reports, and a program that ended (yes, a government program that actually ended), the film tax credit proponents are back. Only this time, instead of a silly five-year program, this time they want to make it 30 years.

This time, the refundable tax credit will cap out at $70 million a year . . . for 30 years. Refundable. No tax liability? No problem. The state will just cut you a check.

Proponents have argued that if this program doesn’t come back, Arizona will no longer be a mecca for movie-making.

Here’s what the Department of Commerce’s Annual Report says on that note:

“A thriving film industry in Arizona has always existed and the future continues to be bright, as evidenced
by the significant number of productions – beyond those participating in MOPIC – that were produced
here. However, it is unlikely that activities directly associated with the level of existing MOPIC tax credits
can reach revenue neutrality.”

Check out the ad we made (without a film tax credit) to help defeat this proposal last year.