For those concerned about Arizona's economic health, there is no more important area for agreement than low tax rates. For as Chief Justice John Marshall once said, "The power to tax involves the power to destroy."
Tax rates often play a key role in determining where individuals and businesses locate. There is a consistent migration of individuals and businesses from high tax areas (the Northeast) to lower tax areas (South and Southwest).
The Reagan expansion of the 1980s, which lasted for a generation and the Bush Boom of this decade are two textbook cases of the salutary effect of tax cuts. Ireland's economy is strong today as a result of a deliberate low tax strategy. Even some high tax states such as Rhode Island have embraced lower tax rates as a way to stimulate the economy.
The most durable achievement of this legislative session was the permanent 10 percent income tax cut. The entire tax cut package is a gift to future generations.
Simply put, low tax rates are a magnet for people and businesses. Counter-intuitively, lower tax rates often result in increased tax revenues as explained by the Laffer Curve. The success we have in even further reducing our tax burden will be a leading indicator of the economic health of this state.
Glenn Hamer is the executive director of the Arizona Republican Party and an occasional "Today's News" contributor.