Brewer: Long-term solution to state's
economic woes depends on jobs
By: Christine Rogel, Cronkite News Service
11/17/2009
PHOENIX - While a temporary sales tax increase would help address
Arizona's budget crisis, a long-term solution will depend on attracting
firms that offer high-paying jobs, Gov. Jan Brewer told business leaders
recently.
"Our future pivots on our ability to create jobs, better jobs,
permanent jobs and more of them," Brewer said at a Greater Phoenix Area
Chamber of Commerce luncheon on Nov. 5.
"We need to create an economic environment that is stable, predictable
and dependable," she said.
Lawmakers and Brewer are preparing for a special session to address an
estimated $2 billion hole in the budget for this fiscal year. Rebuffed
by lawmakers so far, Brewer is pushing for the Legislature to let voters
decide on her plan for a temporary sales tax increase to maintain
critical services.
"My plan all along has been to reduce expenditures, but we won't solve
our problems, our budget deficit, nor will we grow Arizona through cuts
alone," Brewer said.
The governor said the tax increase wouldn't put an undue burden on any
one group of businesses.
With more than 90 percent of Arizona businesses classified as small
businesses, the state also needs to attract larger companies by
rethinking its tax structure, Brewer said.
"We must examine how we treat them in property taxes, in business
personal property taxes and capital gains taxes," Brewer said.
In addition to rethinking the tax system, Brewer said, there needs to be
an incentive structure to reduce costs for health care and provide
health insurance options without state mandates. "We simply cannot
afford for the government to be the health insurer for Arizona," Brewer
said. "We need employers creating good jobs with healthy wages and good
benefits."
Brewer said Arizona needs fewer "hidden taxes" created by government
regulation for business to thrive.
"We do not need regulations and the heavy hand of government strangling
business with needless costs," Brewer said. Even though the state is
facing serious economic challenges, Brewer said she hopes business
leaders will see that leaders aren't sitting still.
"I believe we are seizing the challenge and seizing it boldly and
wisely," she said.
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