Tag Archives: Paul Gosar

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A Priority For The Next Governor

Three of Arizona’s five Democrat members of Congress last week joined all four of their Republican colleagues from the state to accomplish what a similar bipartisan majority in the Arizona Legislature did earlier this year: It loaded a badly needed shot in the arm for the small-business owners who generate almost every new job in the state and nation.

The U.S. House of Representatives voted to make permanent a tax provision that would allow small businesses to write off up to $500,000 in new equipment purchases, and some improvements to real property, instead of depreciating the costs over time. H.R. 4457, titled America’s Small Business Tax Relief Act of 2014, would provide small businesses with expensing levels that are permanent, predictable and at a level adequate to their needs.

This change to Section 179 of the federal tax code, which overwhelmingly passed the House on a 272-144 vote, would prevent the expensing level to fall all the way to $25,000 in 2014, after being at $500,000 from 2010 through 2013. It also indexes the level to inflation. In addition, the House also passed a bill that eases the tax burden on small businesses that change from taxable C-corporate status to S-corporate status.

A quick sample of the small-business owners benefitting from the H.R. 4457 expensing levels would include:

* Your local pizza shop owner who might want to install new ovens and countertops that cost $100,000. He could deduct these capital improvements the same year he makes them, instead of waiting for the current 39 years to get his full depreciation.
* A farmer considering equipment purchases of $300,000 could do so with much more ease, knowing it could all be deducted the year she bought it, instead of only $25,000 of it the first year.
* A contractor looking to buy two work vehicles costing $60,000 would be more inclined to do so. Under current law, only $35,000 could be deducted—spread over five years—instead of all of it immediately.

On June 12, Arizona Democrats Ron Barber, Ann Kirkpatrick and Kyrsten Sinema joined Republicans Paul Gosar, Trent Franks, Matt Salmon and David Schweikert in supporting this pro-jobs legislation. Congressmen Raul Grijalva and Ed Pastor, both Democrats, voted against H.R. 4457. The measure now goes to the U.S. Senate for its consideration.

Earlier this year, a similar tax relief act, House Bill 2664, passed the Arizona Legislature with overwhelming bipartisan majorities. It, too, would have created an immediate state income tax allowance, similar to federal Section 179 expensing for qualifying business equipment investments valued up to $500,000.

In a tragic misreading of the needs of Arizona’s economy, Gov. Jan Brewer vetoed HB 2664 because “the money would be better utilized” on her spending priorities. Undaunted, NFIB is committed to vigorously lobbying Arizona’s next governor and the new Legislature next session to finally realize our own $500,000 allowance to spur new job creation.

Last week’s strong bipartisan House vote to pass H.R. 4457 is very encouraging to small business, especially as demonstrated by the votes of Arizona’s congressional delegation. If Congress and the president do succeed in making it federal law, Arizona’s next governor must match it. If Washington fails, then establishing the small-business expensing allowance in Arizona’s tax code will be all the more critical.

Farrell Quinlan is Arizona state director for the National Federation of Independent Business.

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Arizona congressional races too close to call

Arizona’s three competitive congressional races were too close to call early Wednesday, including the Tucson-centered seat Rep. Ron Barber won in June to replace his former boss, Gabrielle Giffords.

Barber saw his small lead against Republican Martha McSally in the 2nd District disappear just before midnight, with McSally taking a tiny lead.

“We knew it was going to be close and this is exactly what we expected,” she said late Tuesday.

Barber reminded supporters that Giffords’ narrow 2010 win over Republican Jesse Kelly also wasn’t known for several days.

“We’ve got a little bit further to go,” he said. “It’s going to be tomorrow or the day after that.”

Both Giffords and Barber were wounded in January 2011 when a gunman opened fire at a “Congress on Your Corner” event for the then-congresswoman and her constituents. Eleven others also were wounded and six people were killed.

Giffords stepped down from Congress earlier this year to focus on her recovery. Barber beat Kelly in the June special election to replace her.

Kelly chose not to make a third run this fall. McSally, a retired Air Force fighter pilot, won the GOP nomination in August and sought to persuade some of the women and independents who swung to Barber in the special election.

“We knew it was going to be close and this is exactly what we expected,” she said late Tuesday.

In the new Phoenix-area 9th District, Democrat Kyrsten Sinema and Republican Vernon Parker were in a near dead heat.

Both Parker and Sinema acknowledged the wait would be long, and Parker urged his supporters to be patient because thousands of ballots remained uncounted.

“I am telling you all to hang in there,” Parker told supporters in Phoenix. “We will win this thing. I guarantee you.”

Republicans have a slight registration advantage in the district, which includes much of Tempe and parts of Phoenix, Scottsdale, Paradise Valley, Mesa and Chandler. But both parties’ totals are exceeded by independents, and many believe it leans Democratic.

Sinema told supporters there was good reason to be optimistic.

“Right now we’re going to keep our heads high, take a deep breath and pray for every vote to be counted in this election,” she said.

In northeastern Arizona’s 1st District, Republican Jonathan Paton’s slight lead over Democrat Ann Kirkpatrick diminished as Tuesday night wore on.

Kirkpatrick told supporters she was waiting for results from the Navajo Nation and other tribal areas that she hopes will put her back on top. The district runs from Flagstaff through eastern Arizona counties and then west into parts of Pinal County.

“Our race is looking good, but we’re not going to know for quite a while,” she said.

Depending on the outcome, Democrats could end up with a majority of the delegation or Republicans could hold on or add to their current 5-3 majority. The state earned a ninth seat after the 2010 Census and will fill it for the first time in November.

Voters in six districts chose their representatives along the expected 4-2 party split in favor of Republicans.

Democratic Rep. Raul Grijalva won re-election in the 3rd District, freshman GOP Rep. Paul Gosar easily won in the 4th District and former Republican Rep. Matt Salmon coasted to victory in the 5th.

Republican Reps. David Schweikert and Trent Franks were re-elected in the 6th and 8th districts while Democratic Rep. Ed Pastor cruised in the 7th District.