AZ Chamber of Commerce: “Taxes are for little people”

04 Jan 2010 08:50 pm
Posted by: Donna

amd_leona-helmsley

Yesterday’s statement by the Arizona Chamber of Commerce and Industry reminds me of this unintentionally funny Craigslist job announcement: “Sleep til Noon! Seeking Motivated Achievers!”

The Chamber’s legislative agenda for 2010 includes, wait for it, tax cuts for businesses. But they also want to go after Clean Elections funding because:

And its executives are using the deficit as a new reason to go after one of their favorite targets: the state’s system of public financing of elections. That system makes it possible for candidates to run without seeking private contributions, including from the business community.

“The state has a multibillion-dollar deficit,” said Glenn Hamer, the group’s president. “Every penny that comes from taxpayers” should be used for vital services, he said.

“Those funds that are being raised for Clean Elections could very easily get diverted into any other purpose,” he said, specifically mentioning K-12 education, university funding and the Arizona Health Care Cost Containment System, which is the state’s Medicaid program.

That’s touching, Glenn. Hey, I have an idea! How about you and your gang stop trying to repeal the state property equalization tax? You know, for the kids and the poor people who need health care? After all, that’s a $250 million pile of money, as opposed to the $18 million or so in Clean Elections.

LOL. I crack myself up regularly.

Anyhoo, the Chamber, having expressed their pique over candidates getting funded by the benighted plebes instead the titans of industry moved on their perennial favorite topic – tax cuts for the titans of industry.

Hamer said one goal is lowering the state’s corporate income tax rate, which is now just slightly less than 7 percent. He wants the figure to be no higher than the maximum rate of the state’s graduated individual income tax, or about 4.5 percent.

The move, he said, would move Arizona’s corporate tax rate from the midpoint of all states to the seventh-lowest.

Seventh lowest??!? Glenn, dude, go big or go home. Arizona is last in education AND job creation. Why are you going to let Mississippi beat us to the bottom of something? Seriously though, the thing people need to remember about corporate taxes vs. individual taxes is that corporate taxes are paid on profits. Your income tax, on the other hand, is paid on your total wages minus a few qualified deductions. Corporations get to write off business expenses, which include wages, benefits, equipment, depreciation, and a host of other expenditures. By the time they’re done writing everything off, what they’re taxed on is a small portion of the total amount of money they took in. And hey, I don’t have a problem with (most of) those deductions. I want businesses to invest back in their businesses. But those who run corporations in Arizona derive more from the commons than those of us who merely live here. They are able to be in business, and make a profit, because the state provides them with roads and water and emergency services and a bunch of other things. If the business community truly cares about the future of this state, they’ll step up and make the same sacrifices they expect from us little people.

3 Comments

  1. Comment by Appleblossom on January 4, 2010 11:13 pm

    Corporations receive special benefits under the law. It would seem to me that they should pay the taxes to receive those benefits.

  2. Comment by Timmys Cat on January 5, 2010 8:34 am

    If the business community truly cares about the future of this state, they’ll step up and make the same sacrifices they expect from us little people.

    Homerun! You kicked that touchdown right out of the park!

    What galls me most is the corporate retail and restaurant chains that want all the concessions (hello glendale!) but most of the profits end up out of state.
    It’s quite apparent who Hamer works for. Hope those “gifts & favors” fill that ethical hole.

  3. Comment by Jason Johns on April 8, 2010 3:39 pm

    Doing some browsing and noticed your website appears a bit messed up in my K-meleon internet browser. But fortunately hardly anyone uses it any longer but you may want to look into it. – The report of my death was an exaggeration. (New York Journal, June 1897) – Mark Twain 1835 – 1910

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