by admin | Feb 26, 2014 | Uncategorized
The Arizona Free Enterprise Club urges the House of Representatives to vote YES on HCR 2005, ballot referral legislation that would allow terminally ill patients the ability to access experimental drugs that may save their life. Under the ‘Right to Try’ act, if a terminal patient has exhausted all FDA approved drugs and treatment options, and a licensed physician recommends an experimental alternative that has passed basic safety tests, the patient will have the opportunity to explore the proposed treatment.
Simply put, everyone deserves the right to save their own life. Government should not be setting up barriers that prevent sick individuals from exploring treatment options. HCR 2005 removes this roadblock and empowers terminally ill patients to make their own decisions. The Free Enterprise Club urges a YES vote on HCR 2005.
by admin | Feb 24, 2014 | Uncategorized
Despite all of the special tax cuts and subsidies passed at the legislature over the years, there was one program that our elected officials wisely eliminated in 2010—the Film Production Movie Tax Credit. This particular program was a proven waste of taxpayer money and nothing but corporate welfare for Hollywood movie producers.
For the last couple of years the movie industry has tried to bring this subsidy back to life, and the Free Enterprise Club has fought the legislation every step of the way. Their lack of success has spawned a new idea—Senate Bill 1098, which would create a new state agency called the Office of Film and Media. So, in addition to private special interests advocating for tax breaks for Hollywood, we will now have a taxpayer funded lobbyist for the industry as well!
Arizona doesn’t need an Office of Film and Media pushing to provide tax breaks for filmmakers on the public’s dime. The movie industry is important, but not any more important than every other business in the state. The legislature should reject SB 1098 and stop looking for ways to give tax dollars away to Hollywood.
by admin | Feb 12, 2014 | Uncategorized
House Bill 2586 Provides Much Needed Transparency of ‘Economic Development’ Tax Credits
Every year, lobbyists and special interest groups go to the Capitol to advocate for various special incentives and tax credits for their particular industry. Whether it is subsidies for green energy or tax credits for the movie industry, there is a constant struggle over picking winners and losers at the legislature.
When discussing the various tax credit proposals, there is one economic development tax credit that is often touted as being broad based and fair: the Research and Development Tax Credit. This particular carve out in the tax code was created by the legislature as a way to incentivize R&D activity in Arizona. To avoid the criticism that confronted other industry specific tax credits, the R&D tax credit included no cost cap, set loose limits on qualification and carry forward requirements, and opened up the credit to all businesses. It was a win-win for the advocates of the program–promote additional R&D in Arizona while addressing the concerns that the concept picks winners and losers.
The supporters were right about one thing: it is very broad based. It is so broad based, in fact, the program has become one of the most expensive tax credits Arizona has to offer. In 2011 alone, Arizona paid out over $70 Million in R&D tax credits, with an additional BILLION DOLLARS in carry forward credits set to be claimed by employers over the next several years. Annual payouts from the program are expected to exceed $100 million in the very near future. Many even suspect that the R&D tax credit program is directly responsible for sagging Arizona corporate income tax collections.
Proponents might argue that the cost of the credit is worth all of the new R&D occurring in Arizona. Unfortunately, there is no way to prove this point since taxpayers are prevented from seeing who receives these tax credits. The Free Enterprise Club hopes to change this with HB 2586, legislation that requires annual disclosure of the recipients of ‘economic development’ tax credits by the Department of Revenue. Taxpayers have a right to know who is receiving these credits and in what amount so we can determine if it is a good investment for Arizona. At a cost of $100 million dollars a year, a little sunshine wouldn’t be such a bad idea.
by AZFEC | Jan 27, 2014 | Uncategorized
I’m sure this scenario sounds all too familiar to frustrated Arizona taxpayers…
A school district decides to hold a bond or budget override election to request additional money, and you and your neighbors successfully defeat the measure at the ballot box. You breathe a sigh of relief assuming that the issue is settled, yet the following year the SAME EXACT REQUEST IS ON THE BALLOT! It is as if they completely ignored the election and will keep going to the voters until they get what they believe is the “right” answer.
If this is what it feels like, it is not your imagination. Under current Arizona law, school districts are permitted go to the voters as many times as they want to request a budget override, regardless of election outcomes. In fact, many districts that have voter approved overrides will go back to the ballot 3 or 4 times, if necessary, for a new override before the previous override has even expired.
Taxpayers shouldn’t be subjected to unending budget requests, and school districts should honor the will of the voters. That is why we are thrilled to see Sen. Yarbrough sponsor Senate Bill 1182, which would place a limit on how many times a budget override may be sent to the ballot. Under SB 1182, a school district will only be allowed to ask voters for one extension of an existing override. If the request fails, then the district must wait until the existing override expires before going back to the voters.
SB 1182 will be up for a vote in Senate Finance this week, so please contact the members of the committee and ask them to support this common sense reform. Let them know that the will of the voters should be respected.
by AZFEC | Jan 21, 2014 | Uncategorized
In Arizona there is not an industry more subsidized than the solar industry. They get tax credits, rebates, cash grants and even a monthly subsidy through the net metering program at the Corporation Commission. There are thousands of dollars in special tax breaks for renewable energy on the books, all being paid for by non-solar customers.
Now they want a property tax break as well. House Bill 2358 will manipulate how property taxes are calculated on solar equipment, slashing the property tax burden for solar customers. It’s a great deal, unless you don’t have solar. Then your property taxes INCREASE to pay for this giveaway.
This is just another scheme to pick winners and losers at taxpayer’s expense. The legislature needs to reject this bad idea and look to treat all energy users equally.
by AZFEC | Jan 20, 2014 | Uncategorized
The Arizona Free Enterprise Club has launched an initiative campaign to reform the City of Phoenix pension and employee retirement system. The initiative will be called the Phoenix Pension Reform Act.
The initiative seeks to repair the broken pension system for City of Phoenix employees, which is currently only 62.2% percent funded. This initiative will also end the abusive practice of pension spiking, which allows city employees to receive six-figure pension windfalls that were never earned and are paid for by taxpayers.
The Phoenix Pension Reform Act would make changes to the way the pension system functions for new city employees hired after the initiative is approved by the voters and takes effect. Those changes would create a defined contribution system along the same lines as a 401K-style retirement plan for new city employees. Current employees would stay on the plan in which they are currently enrolled although they will have the option of switching to the new plan. The initiative does those who have already retired, or any participants of the Public Safety Retirement System (police and fire fighters).
We believe that the changes being proposed are long overdue and will protect city taxpayers, current employees and retirees from the irresponsible politicians that refuse to address our current pension crisis. If city hall can’t fix abusive practices like pension spiking, then the voters need to be given the opportunity to decide the issue. To learn more about the initiative, click
here.
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