Tag Archives: Proposition 204

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Heroes, Goats and ‘Pure Idiocy’

In case you’ve been living in a cave, next Tuesday is Election Day. Here are a few thoughts about some of the folks that have distinguished themselves as true leaders and others who have made us tune them out this election season.

The Heroes
 
The Treasurer

Treasurer Doug Ducey’s leadership on Proposition 204 is astonishing.  Before his involvement the tax measure was cruising to what many – including me – believed to be a double-digit win.  But now, from every poll that I have seen – including in swing districts in southern Arizona – it is behind and headed for defeat.

Treasurer Ducey has raised dollars, rallied the major chambers and small business groups and an impressive list of mayors and has articulated a clear case on the ills of what would be the state’s largest tax increase. Win, lose or draw, Treasurer Ducey should be recognized for his efforts.

The real education reformers

One of the savviest and wisest policy minds in this state, Jaime Molera, deserves praise for his gutsy opposition when Prop. 204 first hit the streets.  Also making the case for real education reform is Dr. Craig Barrett, who has made clear that 204 is rotten policy. The retired chairman and CEO of Intel delivers as effective a speech as any educational leader in the country on what it takes to improve our schools.  We all agree we need to improve our K-12 education system.  A proposal that permanently raises the state’s sales tax to the second-highest in the nation without directing dollars to proven education reforms is obviously not the answer, though.

The President and the Speaker

Steve Pierce and Andy Tobin have been paragons of leadership at the Legislature the past two years, and in the last year have led their chambers as Senate President and House Speaker, respectively.  Not only have the two championed passage of the most comprehensive set of job creation proposals in the nation, they have passed responsible budgets and moved the state past divisive issues.  As a result of their work and the vision of Gov. Jan Brewer, Arizona is now ranked as a Top-10 state from Chief Executive Magazine and rated number one by the Kauffmann Foundation’s Entrepreneurial Index.

Both President Pierce and Speaker Tobin have raised hundreds of thousands of dollars to protect viable and valuable incumbents, particularly those now thrust into more competitive districts as a result of the redistricting process.

I find it humorous that some would attack Pierce in particular on fundraising.  He has raised more than anyone in the state, perhaps ever (not counting unions; see below) for legislative races. Compare his Herculean efforts with any challenger or even the state GOP and it is obvious that any criticism is crass political posturing. But if you don’t think the president and speaker have done enough, there’s still time to write a check.

The Goats
 
The Pinal County GOP Brain Trust

Sen. Andy Biggs deserves credit for his role in shaping a strong budget this past year.  With that said, it makes no sense to listen to a few angry and misguided Pinal County GOP poobahs and change horses in legislative leadership when under President Pierce’s direction the Senate has been firing on all cylinders. The thought of replacing Andy Tobin’s steady hand with freshman Steve Smith, no matter his enthusiasm, is absurd.

What is particularly outrageous is that this call has been issued at the end of an election in an area of the state that is so hotly contested. Their time in these last precious hours before the polls close would be better spent working to ensure that candidates like Frank Pratt and TJ Shope have a seat in the House of Representatives come January.

Richard Carmona

Rich Carmona’s ad implying an endorsement from Senators Jon Kyl and John McCain is both deceitful and stupid.  Not to provide proper context from remarks made from our senators over 10 years ago is wrong.  Carmona launched his ad on the 45th anniversary of Sen. McCain being shot down over Hanoi. Instead of taking that day to thank and honor Sen. McCain, Carmona instead chose to use the senator to deceive voters.

The Carmona campaign didn’t do itself any favors when it, in response to Sens. McCain and Kyl’s anger over the ad, dismissed the senators as career politicians. The Arizona Republic nailed it in Tuesday’s editorial when it called the Carmona charge, “pure idiocy.”

Carmona left himself open for a strong counterpunch, and the senators connect in their response ad. The counter ad should be enough to put Congressman Flake over the top and into the U.S. Senate.
 
The name callers

If you want to talk about lazy language, the charges that John McComish is an extremist don’t pass the laugh test.  McComish is a business-minded, independent former chamber executive who supports jobs-friendly legislation and stands strong against the bad ideas.  And hopefully there is a price to pay for the bozos who took a page from the Carmona playbook and suggested that Sen. Jerry Lewis endorsed Russell Pearce.  For anyone awake in Arizona, you’ll recall Sen. Lewis defeated Pearce in a recall race last year. You can Google it.

Final Observations

For those not convinced that paycheck protection is urgently needed to prevent union members’ paychecks from being raided to underwrite political campaigns, one need just to look at what is going on in the Senate races involving Senators McComish and Lewis.

Some feel that appeasement works and that certain unions will play nice if left alone.  Well, after somewhere in the neighborhood of $300,000 in outside dollars -much of it union money – launched against Sen. McComish, we get a sense of how well appeasement works.

If you’re shopping for an early Christmas or Hanukkah gift for Arizona, I recommend paycheck protection legislation.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry.

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The Arizona Chamber’s guide to the ballot propositions

With less than three weeks remaining before the 2012 General Election, many Arizonans are getting ready to put their early ballots in the mail. Before you fill in those boxes with ink and head to the post office, please take a moment to review the Arizona Chamber of Commerce and Industry’s recommendations on statewide propositions.

The Chamber has weighed in on five ballot measures, taking a position of support on four and opposing one.

Here’s a brief look at each of our positions:

Proposition 116 – Property Tax Exemptions – Support
The Arizona Chamber joins the Arizona chapter of the National Federation of Independent Business in supporting Proposition 116, which will help small businesses grow and create jobs by reducing the tax burden on their equipment and machinery. A tax on the value of equipment and machinery increases the fixed cost of operating a business in Arizona and creates a disincentive to new investment. Proposition 116 would exempt the value of equipment and machinery equal up to the wages of 50 Arizona workers (now about $2.4 million), making it more likely Arizona businesses will hire new employees and purchase necessary equipment.

Proposition 117 – Property Tax Assessed Valuation – Support
As our friends at the Arizona Tax Research Association have pointed out for years, our state’s property tax system is overly complicated, with two valuations: full cash value and limited property value. Under Proposition 117, the annual growth of the limited property value would be limited to five percent, and it wouldn’t exceed the full cash value. Also, the limited property value would be the only taxable value, helping to deliver a much greater level of predictability and stability in Arizona’s property tax system.

Proposition 118 – Establishment of Permanent Funds – Support
Passage of Proposition 118 will restructure the distribution formula for the Permanent Land Endowment Fund, whose largest beneficiary is K-12 education. Currently, in some years the formula distributes tens of millions of dollars; in other years zero.  This reform will smooth out the distribution so that there is some allocation to education every year.  The result will bring about reliable and consistent K-12 education funding with no new taxes and no new spending from the General Fund. Arizona Treasurer Doug Ducey deserves applause for crafting this reform.

Proposition 119 – State Trust Lands – Support
Proposition 119 will help prevent incompatible land use that could put at risk the jobs associated with military bases. Arizona’s military installations contribute over $9 billion in economic output. Proposition 119, whose supporters include Land Commissioner Maria Baier and Greater Phoenix Leadership, will help ensure they are able to complete their critical missions and remain an integral part of Arizona’s economy for decades to come.

Proposition 204 – Permanent Sales Tax Increase – Oppose
The Chamber recognizes that a high-performing education system requires the financial resources necessary to produce a highly qualified workforce. To that end, the Chamber strongly supported Proposition 100 in 2010, which established a temporary one cent per dollar sales tax, and over 10 years ago our organization supported Proposition 301. We also supported new funding this past year at the Legislature to fund Move on When Reading, a proven reform targeted at ensuring that students exit the third grade with the ability to read. Going forward we will support efforts to properly implement the Common Core standards, which is a state-led effort to increase educational standards so America’s students can compete with the best and brightest students from around the world.

Unfortunately, this new $1 billion a year permanent tax would leave Arizona with the second highest sales tax rate in the country — leaving a number of cities with a combined rate over 10 percent. It would make future efforts to reform our sales tax code and help to create jobs much more difficult. Not surprisingly, many chambers and prominent business groups oppose this effort including the Greater Phoenix Chamber of Commerce, NFIB, the Arizona Small Business Association, the Tucson Hispanic Chamber of Commerce and the East Valley Chambers Alliance. The education reform aspects are basically non-existent and simply not worth the risk to our state’s economy. Arguably two of the most prominent education reform advocates in the state, Dr. Craig Barrett and former State Superintendent of Public Instruction Jaime Molera have come out in opposition to Prop. 204. The Arizona Republic wrote a thoughtful piece opposing Prop. 204 as well. We strongly urge a no vote on Proposition 204.

We believe that by following the Arizona Chamber’s recommendations on these important ballot measures Arizona voters will be casting a vote in favor of growing jobs and increasing our state’s economic competitiveness. For more information on these items and candidate races, be sure to check out the Arizona Prosperity Project’s website, a convenient tool to learn more about the big issues in this election.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry.