Should Arizona restructure its tax code to create jobs? (sales, rent)

[azriverfan.]

I found this article interesting. It's a year old but it made some interesting points. Here is a key excerpt from the article

"But Arizona is regionally uncompetitive in many corporate tax rates and that has a significant impact on the ability to attract businesses. For example, Arizona's commercial property tax burden is the fifth highest in the country and the highest in the region. Seven of every $100 dollars in corporate profit is paid to the state through the corporate income tax. Arizona also has a capital gains tax, which two of the state's biggest competitors, Nevada and Texas, do not have."

Uncompetitive Tax System Stymies Job Creation in Arizona | Goldwater Institute (http://www.goldwaterinstitute.org/article/2710 - broken link)

[las vegas drunk]

Originally Posted by azriverfan.

I found this article interesting. It's a year old but it made some interesting points. Here is a key excerpt from the article

"But Arizona is regionally uncompetitive in many corporate tax rates and that has a significant impact on the ability to attract businesses. For example, Arizona's commercial property tax burden is the fifth highest in the country and the highest in the region. Seven of every $100 dollars in corporate profit is paid to the state through the corporate income tax. Arizona also has a capital gains tax, which two of the state's biggest competitors, Nevada and Texas, do not have."

Uncompetitive Tax System Stymies Job Creation in Arizona | Goldwater Institute (http://www.goldwaterinstitute.org/article/2710 - broken link)

What is your opinion on this? Mine is yes. They should also get rid of the state income tax too.

[observer53]

Originally Posted by las vegas drunk

What is your opinion on this? Mine is yes. They should also get rid of the state income tax too.

And replace it with what? Indiviidual income tax rates here are not that steep. The states with no income tax (like Florida) have outrageous property taxes. I agree that there has to be some restructuring of our tax system here to reduce the dependency the state coffers have on sales tax, but I don't agree that removing the income tax is part of the way to do that.

[las vegas drunk]

Originally Posted by observer53

And replace it with what? Indiviidual income tax rates here are not that steep. The states with no income tax (like Florida) have outrageous property taxes. I agree that there has to be some restructuring of our tax system here to reduce the dependency the state coffers have on sales tax, but I don't agree that removing the income tax is part of the way to do that.

The federal already charges income tax so their is no reason for the state to charge for it too. Here in Nevada, they do not charge income tax for the state. The property taxes here are the same or lower than Arizona too.

[joninaz]

Originally Posted by las vegas drunk

The federal already charges income tax so their is no reason for the state to charge for it too. Here in Nevada, they do not charge income tax for the state. The property taxes here are the same or lower than Arizona too.

NV is very dependent of gaming taxes, which pay for 30% of the state budget. Right now the state has the largest budget gap in the country, percentage wise, due to the slowdown in gaming income. Even if times were normal, it's tough to have one industry shoulder a big chunk of the govt. Vegas-style casinos are popping up just about everywhere in the US, and Macau is hoping to rope in the Asian market, which has been a huge feeder for Vegas. Regardless - too many eggs in one basket.

[adolpho]

They already are restructuring the tax code to create jobs; government jobs for their cronies. 2% grocery tax would be a prime example.

[observer53]

Originally Posted by las vegas drunk

The federal already charges income tax so their is no reason for the state to charge for it too. Here in Nevada, they do not charge income tax for the state. The property taxes here are the same or lower than Arizona too.

And the FEDERAL tax pays for federal services, and the STATE tax pays for state services. So there is a "need" for state income tax. Seems fairly elementary. Convenient of you to forget the gaming taxes that NV relies on that other states don't have.

Originally Posted by joninaz

NV is very dependent of gaming taxes, which pay for 30% of the state budget. Right now the state has the largest budget gap in the country, percentage wise, due to the slowdown in gaming income. Even if times were normal, it's tough to have one industry shoulder a big chunk of the govt. Vegas-style casinos are popping up just about everywhere in the US, and Macau is hoping to rope in the Asian market, which has been a huge feeder for Vegas. Regardless - too many eggs in one basket.

Exactly, NO state should have too many eggs in one basket, and AZ has always been sales-tax heavy in its budget.

[tfox]

Lowering corporate income taxes is probably a good idea for job creation, if they can find a way to fund it. AZ has very few corporate headquarters compared to other states, so lowering corp taxes might help attract some.

Individual income taxes are already pretty low in AZ, especially when you consider that property taxes are also quite low (Texas, for example, has no income taxes but has outrageous property taxes). In fact, I think for most individuals, AZ is actually better tax-wise than Texas (Texas would be better for those with high or dual incomes who either rent or live in modest dwellings ).

But Texas does have zero CORPORATE income taxes as well, and that's one reason why Texas has more Fortune 500 corporate HQ than any other state (68), more than New York which has 56. And a lot more than Arizona which has only 5. Those corporate HQ do bring lots of jobs to Texas.

[Ritchie_az]

Yes, but it requires the state government to do with less for a while. (Unfortunately) I'm not sure the voters here will go for that. But (again) I say yes.

[YAZ]

Originally Posted by adolpho

They already are restructuring the tax code to create jobs; government jobs for their cronies. 2% grocery tax would be a prime example.

An incredibly major windfall, I might add.

For THEM, anyway.