The Arizona Free Enterprise Club urges that the House of Representatives vote NO on SB 1484, tax credit legislation that will provide millions in special tax breaks to corporations that generate renewable energy for manufacturing. In fact, it has been an open secret at the legislature that only 2 companies (at most) will benefit from the tax credits being provided in SB 1484. This is crony capitalist special legislation and a raw deal for taxpayers.
If the tax policy wasn’t bad enough, the purpose clause provided in the bill should give legislators pause as well. In the actual text of SB 1484, it declares that the credits are needed to incentivize companies in Arizona to “reduce their carbon footprint.” Tax credits to fight global warming?? There couldn’t be a more wasteful use of taxpayer money than to provide special tax breaks to two companies that will have virtually no impact on carbon emissions. We should not be picking winners and losers, especially when it is for a questionable environmental agenda.
The Club urges a NO vote on SB 1484.
A few years ago, a group of smart entrepreneurs and innovators came up with a revolutionary idea on providing an alternative transportation service to the traditional cab company—‘Ridesharing’. With ridesharing, private drivers have the freedom to provide rides wherever and whenever they want, while consumers have the luxury to explore the new service and compare the cost to taking a traditional cab.
This new service was an instant hit, with both drivers and consumers being able to enjoy a better (and often cheaper) transportation option than what was available. Two companies that have been leading the rideshare revolution, uberX and Lyft, have taken this model worldwide, expanding to over 40 U.S. markets and providing thousands of rides each year.
Normally this type of innovation is a cause for celebration, but instead the entire business model is in jeopardy. Fearing the competition, the entrenched taxi cab industry has been working tirelessly to shut ridesharing down. They are trying to shut the service down in New York City and San Francisco, and they were successful in stopping ridesharing in Seattle. Now they are trying to do the same in Arizona.
That is why the Free Enterprise Club is supporting HB 2262, legislation that will allow for ridesharing to continue in Arizona. HB 2262 sets up the regulatory structure to gurantee that ridesharing will continue in Arizona. The cab companies know this, and that is why they are pulling out all the stops to kill the bill (and with it, their competition).
The Free Enterprise Club urges the legislature embrace innovation and support HB 2262.