Tag Archives: john shadegg

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Steptoe hosts Construction Industry Tax Seminar

Contractors, developers, construction managers, and homebuilders are invited to attend Steptoe & Johnson’s 10th Annual Construction Industry Tax Seminar co-sponsored by the AzBusiness Magazine. Steptoe’s tax lawyers will bring participants an annual update on the latest developments in Arizona’s sales and property taxation.

The seminar will take place September 27, 2013 and the Arizona Biltmore Resort.
The program will focus on new legislation, which if passed and signed by the Governor, will turn the sales taxation of contracting upside down–from taxing the prime contractor to taxing the sale of building materials, except for road and bridge construction where the prime contractor will still be taxed (H.B. 2111). In addition, seminar leaders will bring you up to date on legislation (already signed by the Governor) that does away with the “permanent attachment” test under the exemption for installing exempt machinery and equipment (H.B. 2535).

Speakers include Pat Derdenger, Dawn Gabel, Frank Crociata and Ben Gardner, all members of Steptoe’s Tax Group in Phoenix. Steptoe’s tax lawyers bring to clients decades of consulting, transactional, and advocacy experience in all substantive areas of federal and state taxation.

The luncheon speaker will be Hon. John Shadegg, partner in Steptoe’s Phoenix office and former US Congressman. He will give his perspective on the Affordable Care Act and how it will impact Arizona businesses.

For more information, call 602-257-7708. Register online at www.steptoe.com.

Tax Consequences

Steptoe hosts Construction Industry Tax Seminar

Contractors, developers, construction managers, and homebuilders are invited to attend Steptoe & Johnson’s 10th Annual Construction Industry Tax Seminar co-sponsored by the AzBusiness Magazine. Steptoe’s tax lawyers will bring participants an annual update on the latest developments in Arizona’s sales and property taxation.

The seminar will take place June 13, 2013 and the Arizona Biltmore Resort.

The program will focus on new legislation, which if passed and signed by the Governor in the coming weeks, will turn the sales taxation of contracting upside down–from taxing the prime contractor to taxing the sale of building materials, except for road and bridge construction where the prime contractor will still be taxed (H.B. 2111). In addition, seminar leaders will bring you up to date on legislation (already signed by the Governor) that does away with the “permanent attachment” test under the exemption for installing exempt machinery and equipment (H.B. 2535).

Speakers include Pat Derdenger, Dawn Gabel, Frank Crociata and Ben Gardner, all members of Steptoe’s Tax Group in Phoenix. Steptoe’s tax lawyers bring to clients decades of consulting, transactional, and advocacy experience in all substantive areas of federal and state taxation.

The luncheon speaker will be Hon. John Shadegg, partner in Steptoe’s Phoenix office and former US Congressman. He will give his perspective on the Affordable Care Act and how it will impact Arizona businesses.

For more information, call 602-257-7708. Register online at www.steptoe.com.

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Arizona Politics 2010: The Year That Was SB 1070

It’s the start of 2011. This is usually when everyone writes top 10 lists for the year just past. I was going to write a “top 10 political stories of 2010 column,” when it occurred to me that was the year of one main significant political story.

Oh, there were plenty of important political happenings. President Obama and the Democrats were crushed nationally in the midterm elections. Arizona said goodbye to Congressman John Shadegg, Congressman Harry Mitchell, and Congresswoman Ann Kirkpatrick, and hello to newly elected Congressmen Paul Gosar, Ben Quayle and David Schweikert.

Our state struggled to balance the budget, and almost every city in Arizona made major cuts in order to balance theirs. Gov. Jan. Brewer’s re-election faced an early challenge from within her own party. During the general election campaign she froze in a televised debate and didn’t seem to offer any tangible evidence of headless bodies in the desert. Then of course she sailed to an easy victory at the polls.

Voters even decided that marijuana should be legal in Arizona (as medicine that is).

None of these other stories came anywhere close to being as significant as the firestorm created by the Support Our Law Enforcement and Safe Neighborhoods Act, more commonly known by its Senate bill number, SB 1070. At one point in the 2010 legislative session, SB 1070 seemed to lack support and was close to being dead. Then tragically, on March 27, southeastern Arizona rancher Robert Krentz was found shot to death alongside of his dog. His ranch sits 12 miles away from the U.S.-Mexico border. SB 1070 found new life and was signed into law on April 23.  Suddenly the nation was abuzz about Arizona. It even became a headline internationally.

Those first few weeks were a little surreal. Almost daily, you could find our local elected officials on national talk shows speaking out in favor or against it. Supporters justified that action was needed to deal with illegal immigration, an issue the federal government was ignoring. Opponents claimed SB 1070 would violate civil rights and lead to racial profiling.

SB 1070 was a little vague, so on April 30, HB 2162 was passed to amend and clarify it.

A boycott was called against Arizona and numerous lawsuits were filed, including one by the U. S. Department of Justice. The day before SB 1070 was to go into effect, a federal judge issued an injunction against a portion of the law that effectively killed it.

You might think that this is where the SB 1070 story ends, but it doesn’t — and that is what makes it such a huge event. Although nationally, numerous jurisdictions and high-profile people were passionate in their opposition, polling showed that it was more popular with the masses. A number of states are discussing similar legislation for 2011.

In the New Year, Russell Pearce, the Arizona Senate president and major sponsor of SB 1070, is continuing to focus on the same issue. With the start of the next Arizona Legislative session, he intends to take on the U.S. Constitution’s 14th amendment dealing with citizenship being granted to anyone born in the U.S. He is trying to prevent illegal immigrants from getting citizenship for their children by fleeing to America and having a baby on U.S. soil.

Although SB 1070 didn’t get enacted, it did serve part of the purpose it supporters intended. Illegal immigrants now recognize Arizona as the least friendly state to homestead in.

I still believe that SB 1070 would not have really fixed the problems it was intended to fix. However, it was successful in driving a complicated issue into the mainstream of discussion on the national level.

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Money Reigns Supreme In The Arizona Primaries

The primaries are over and we are on to the general election. Because primary elections only decide who will represent political parties going into the general election, they are sometimes seen as less-important races. Many times, the primaries are the toughest battles. In a district that is considered Republican or Democrat “safe,” the primary is the real contest and the general election is the afterthought.

In Arizona’s 3rd Congressional District we can see how this works. It is considered Republican safe. Congressman John Shadegg decided not to seek re-election to this seat. While only one Democrat and one Libertarian candidate sought the office, 10 Republicans entered the race and spent roughly $3.5 million combined in a spirited contest. Ben Quayle won the Republican nomination and will go on to face Jon Hulburd, the Democrat’s nominee, and Michael Schoen, the Libertarian’s. These primaries had 79,011 Republicans cast ballots compared to 27,755 Democrats and 422 Libertarians. It would be hard for a Republican nominee to lose this seat with nearly a three-to-one margin of turnout advantage.

Two of the most significant factors in winning an election like this are incumbency and money.

Look at Arizona’s congressional seats. This year, seven of Arizona’s eight congressional incumbents were seeking re-election (with Shadegg deciding to step down). Of those seven, three were unchallenged within their primaries and the four that were challenged all won. Congressional incumbents went seven for seven in their primaries.

Of the 11 contested Republican or Democrat primaries, eight of them were won by the candidate who raised the most money. The three races that weren’t won by the top money raisers were won by the second-highest money raisers. These primary winners raised an average of $750,000 each.

Usually, people are discouraged by this. I’ve been asked, “Shouldn’t the candidate’s message and platform be the most important factors to decide a race?”  I agree that they should, but here is the reality: If you are the greatest candidate the world has ever known, you are not going to get elected if people don’t hear your message! Incumbency is valuable because people become familiar with your name and it gives a candidate a tremendous boost raising campaign contributions.

Why does money have to be so important? Campaigns are about communicating a message to an electorate. Hiring a professional consultant to guide your campaign, using resources such as signs to build name ID, and having the ability to send out mail, make phone calls, or air television ads are all examples of how to communicate a message. All of these things require money. Without money, a candidate is just unknown.

As much as we would like to root for the little guy to win or the underdog to pull off the upset, the truth is that a candidate we have never heard of who doesn’t have campaign resources rarely gets our vote. They don’t have credibility because we don’t know them. It is unfortunate because sometimes they may be the better candidates.