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State Capitol News

Brewer's call for tax cuts on hold

By Howard Fischer

Phoenix, AZ – Businesses may have to wait a little longer for the tax cuts that
Governor Jan Brewer promised them earlier this year.

The tax cuts were part of Brewer's five-point plan unveiled in
March for getting the state back on its financial feet. Speaking
Monday to a Tempe business group, the governor said she remains
convinced that lower taxes are the way to get firms to locate and
expand here.

"We have to certainly remember the businesses as yourselves here
and those that we hope to come, that we need to address and do
tax reform, we need to address corporate tax, we need to address
property tax, we need to address personal income tax, state
equalization tax all has to be addressed."

Brewer had been committed to having a whole round of tax cuts
kick in in 2012. But the governor said Monday that was premised
on another of the five points in her plan: Letting voters decide
if they're willing to approve a temporary sales tax hike to deal
with the immediate budget deficit.

"The will wasn't there to send it out to the people. That didn't
follow through. So now I'm a year behind in our plan to get this
all kind of squared away, get us on to the path of prosperity, to
kind of turn the engine around."

The governor said the delay in getting new source of revenues to
get over the hump pushes back the date at which the state can
finally afford to give the kind of tax breaks that businesses