by admin | Jul 5, 2016 | News and Updates
The 2016 legislative session included ongoing debates about the effectiveness of the Arizona Commerce Authority. Following a challenging Auditor General report and sunset review in the fall, the ACA pursued a renewal of their agency. Skeptical lawmakers opted for only a two year renewal, an atypical amount of time that reflected the legislature’s reticence.
Though the Commerce Authority regularly reports on its “successes” of bringing jobs to Arizona by giving taxpayer dollars away to select businesses, they are less likely to highlight their failures.
For example: last year the Authority promised $1.5 million in cash and tax credits if business health benefits company, Zenefits, could deliver on 1,300 new higher wage jobs within three years of expanding into Arizona. February of this year Zenefits announced it was laying off 160 workers from mostly their Tempe facility.
Now – Zenefits has announced its closing its sales office in Scottsdale, laying off more employees, and packing up to move those functions back to their headquarters in San Francisco. What was once touted as a giant success for the ACA, has proven to be much less fruitful.
Zenefits is in a complicated space, highly regulated and experiencing severe growing pains. This is all the more reason why gambling with tax payer dollars to subsidize businesses to come to Arizona is irresponsible. Zenefits, like all businesses, are best served by making their decisions based upon competitive logic. The free market is a built in mechanism to reward or punish businesses for the accuracy of that logic. When government steps in to incentivize certain business decisions, it creates distortions in the marketplace and unfair advantages.
The majority of Arizona’s jobs are created by businesses that “go it alone.” They don’t receive special incentives, tax breaks, or handouts. These job creators might not get the recognition, the ribbon cuttings, or the publicity, but they’re the back bone of our economy. It’s about time we recognize the thousands of businesses that start, grow, and thrive in Arizona – without the “help” of the Arizona Commerce Authority.
by admin | Jun 30, 2016 | News and Updates
Phoenix, AZ – The Arizona Free Enterprise Club PAC today has released their second slate of candidate endorsements for Arizona legislative races.
After a series of interviews of candidates running for Arizona State House and Senate, The Club PAC has identified several strategic districts in which they will be involved. The candidates who received endorsements share the key beliefs in free market economics, tax reform, school choice, regulatory reform, and fair and equitable tax policy.
Endorsed candidates include:
- Steve Montenegro, District 13, Senate
- Maria Syms, District 28, House
- Matt Morales, District 28, House
- Adam Stevens, District 16, House
- Ross Groen, District 25, House
“The Club is honored to endorse this slate of candidates for the Arizona Legislature. Each individual is passionate about fighting for Arizona taxpayers and we are confident they will be principled in their votes on the important issues facing the state.” Free Enterprise Club President Scot Mussi said.
Mussi continued, “We are fortunate to have incumbent and outgoing Majority Leader, Steve Montenegro running for the State Senate. Montenegro has garnered the respect of his colleagues by being fair, cooperative, and always listening to the members. He has also been a strong leader in ensuring conservative budgets with spending restraint have passed the past two years.”
Maria Syms, Matt Morales, Adams Stevens, and Ross Groen will all make strong additions to the legislature as freshmen lawmakers. Mrs. Syms has a proven record on the Paradise City Council of being a fiscal hawk and pushing back on the pressure to unnecessarily raise taxes on the citizens of PV. Mr. Morales brings a savvy political know-how and deep policy knowledge to the race; we expect him to be a strong advocate for business rights. Mr. Stevens is a voice for much needed tax and regulatory reform, having a long tenure in business. Finally, Mr. Groen has a solid philosophic understanding of the role of government – he will be a formidable force for private property rights and individual liberty.”
For additional information on the Club PAC’s candidate endorsements, contact Scot Mussi at info@azfree.org or at 602-508-6088.
by admin | Jun 27, 2016 | News and Updates
Over the past 50 years there has been a gradual regulatory encroachment. This has had the effect of stifling competition, discouraging entrepreneurial endeavors, and keeping many people out of the labor market. It might sound like the expansion of federal agencies such as the EPA or NLRB. However, these detrimental policies have been a mostly state and local agenda, and shockingly have been identified as one of the current White House administration’s priorities to tackle: occupational licensing.
Only a half a century ago, one in twenty workers required a license to perform their jobs. Today, in the United States, it’s approximately one in four. There has been a significant cost to this expansion of licensure over the years.
This explosion of licensure over the last several decades is not just highly technical professions such as medical doctors and attorneys, but includes many lower to medium income jobs, which do not pose the same threat to public health or safety. Instead, the licensing of hair dressers, preschool teachers, sign language interpreters, and funeral attendants (just to name a handful), represent a run-away trend for professions to regulate themselves.
The reason for this is quite simple. Licensing allows an industry to depress the number of professionals in their field. Costly fees, continuing education, and exams, serve as barriers to entry. As a result, fewer people will pursue their trade or professional passion. Fewer persons supplying a service, while maintaining the same demand, will put upward pressure on prices. This isn’t just theoretical economics, several studies demonstrate an average of 15 percent higher income earnings in professions that are licensed compared to comparable professions that are not. Though that might be good for those keeping out potential competition, it means an increase in services for the consumer and a less opportunity for others seeking work. In fact, according to this same study, licensing across the country is responsible for 2.85 million fewer jobs and $203 billion to consumers.
The 2015 White House report, the U.S Bureau of Labor, and the Goldwater Institute confirm this analysis. These reports determined with compelling evidence that those most negatively impacted by licensing requirements are the most vulnerable and disadvantaged. Immigrants, individuals with criminal records, minorities, low-income persons, less-educated persons, new young workers, and older workers trying to reenter the job market are all disproportionately affected by licensing. Military families, as well are included in this population because of their propensity to move across state lines so often. Because licensure requirements run the gamete across states, many of the same professions have very different requirements. Despite the relatively equal skills required to do a particular job, the regulatory obligations vary vastly and with little ostensible reason.
Arizona is considered one of the worst states for burdensome and extensive licensure regulations. According to a study done by the Institute for Justice, “License to Work,” Arizona licenses 64 out of the 102 moderate-income occupations they studied. Many of these licenses require more training than the national average – such as manicurists with 140 days compared to the 87 nationally, mobile home installers who require 2 years of education compared to just seven months nationally. Under the Ducey administration, some effort has been made to reduce the scope of Arizona’s licensure. This past session, the Governor’s office successfully pushed HB2613 which eliminates the licenses for food-packing contractors, geologists, driving school teachers, yoga instructors, assayers, and people who do cremations. Originally in the bill but amended out, was the abolition of licensure for landscape architects.
Dismantling entrenched licensure systems has proved politically exceedingly difficult, with more losses than wins across the country. Trade organizations have powerful lobbyists who are motivated, organized, and well-funded. However, the tide of the conversation seems to be shifting as several successful court cases have demonstrated the unconstitutionality of state licensing boards exercising excessive authority and anticompetitive practices. And as the data continues to prove over-licensing dampens an industry’s job growth, discourages entrepreneurship, and harms consumers more legislatures will be forced to think twice about protecting this insidious form of cronyism.
by admin | Jun 23, 2016 | News and Updates
Phoenix, AZ – The Arizona Free Enterprise Club PAC today has released their first slate of candidate endorsements for Arizona legislative races.
After a series of interviews of candidates running for Arizona State House and Senate, The Club PAC has identified several strategic districts in which they will be involved. The candidates who received endorsements share the key beliefs in free market economics, tax reform, school choice, regulatory reform, and fair and equitable tax policy.
Endorsed candidates include:
- David Stringer, District 1, House
- Paul Mosley, District 5, House
- Warren Petersen, District 12, Senate
- Eddie Farnsworth, District 12, House
- Travis Grantham, District 12, House
“We are proud to endorse these individuals for the Arizona Legislature. We are confident that they will fight hard for Arizona taxpayers.” Free Enterprise Club President Scot Mussi said.
Mussi continued, “We are fortunate to have incumbents Warren Petersen and Eddie Farnsworth seek another term. Both Petersen and Farnworth have been outstanding advocates for fiscal conservatism and budgetary discipline. They are respected by their colleagues and both have served as Chairs of important legislative committees.
David Stringer, Paul Mosley, and Travis Grantham will all make strong additions to the legislature as freshmen lawmakers. Mr. Stringer has already proven successful in his district defeating unnecessary school bonds and overrides. Mr. Mosley is passionate about education and ensuring parents have the ultimate choice in regards to their children. And Travis Grantham has extensive business experience and understands the importance of reforming our tax system.”
For additional information on the Club PAC’s candidate endorsements, contact Scot Mussi at info@azfree.org or at 602-508-6088.
by admin | Jun 20, 2016 | News and Updates
The “Open and Honest” elections ballot initiative is overwhelmingly unpopular with voters when they learn that not only does the initiative fund politicians’ campaigns with taxpayer money, but also support a state bureaucracy to run the program.
According to the recent poll published by the Club, a compelling 79 percent of voters were less likely to support the ballot initiative after learning their tax dollars would contribute to more government. Almost equally disdainful to voters was the initiatives mechanism for extracting the tax dollars – surcharges on traffic citations and tax credits.
“It is clear of all the areas Arizonans wish to invest – education, the economy, infrastructure – Clean Elections is not one of them,” said Scot Mussi the Club’s President. “Voters are already dubious that their money is spent efficiently by government. Taxpayers should be reticent to give new money to a state bureaucracy, especially one doling out funds to politicians.”
The initiative would significantly boost the amount of tax dollars political candidates would receive. For legislative races, the average candidate would receive approximately $80,000 to run for office, nearly double the amount allowable presently. An expansion of the program would necessitate an expansion of the agency itself.
Voter hesitancy is well founded as ballot initiative’s legitimacy has been called into question. Considering the initiative references state statutes that don’t even exist, it is likely it will be challenged in court if it does get the requisite signatures. Given the confusion surrounding this ballot initiative, Arizonans would be well served by simply “declining to sign” and saying “no” to their hard-earned tax dollars going to politicians and more bureaucracy.
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