BREWER ECONOMIC PLAN UNVEILED; BIZ TAX CUTS ON TOP

posted by Michael Chihak

Arizona Gov. Jan Brewer announced her economic development plan today at the State Capitol, leading as expected with a package of business tax cuts.

The plan also calls for the legal trappings to change Arizona's Commerce Department to a private-public Commerce Authority to boost economic development and a "deal-closing" fund to lure businesses to the state.

A special legislative session will be called to allow the Legislature to focus on the plan and get it passed quickly.

The business tax cuts will include a reduction in the state corporate income tax by about 29 percent, elimination of the state tax on goods manufactured in Arizona but sold elsewhere, reductions in real estate and personal property tax rates for businesses and other tax-reducing steps. All would be implemented gradually beginning in about two years, taking full effect by 2017.

The Joint Legislative Budget Committee has estimated that a similar business tax-cut plan in the Senate would save businesses about $475 million a year when fully implemented.

Arizona Week will look at details of the plan throughout the week and on Friday evening's program. We are seeking interviews with the governor, with Arizona Commerce Authority Don Cardon and with an economist for analysis of the plan.