The fact is that towns, states, and cities have done this all around the country for decades. What do you think a tax abatement is for a favored business?
The only difference between a targeted and total tax abatement is that the targeted TA often doesn't accomplish its purpose. If you think back about five years, ***** took alot of slaps on the back for arranging a huge TA for a company in Wisconsin (Carrier I believe). That was supposed to save a bunch of jobs and didn't.
That favored one business. If you make the entire business tax environment in the state one where there is no way to compete with you, businesses will go where they get the best where they get the best treatment. People go where jobs are
Since 75% of Arizona tax revenue comes from personal income tax and less than 15% comes from business taxes, increasing payrolls by increasing jobs and better paying jobs, there is more in the pot and we replace that 15% with a tax surcharge.
We shift from the business to the individual by 15%, which raised the highest arizona income tax rate to about 3.5%, which is still one of the lowest in the country. Arizona's cap would still be 1/3 of California's.
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