One decision facing Arizona lawmakers this New Year is what to do with the state's $750-million-soon-to-be-$1-billion revenue surplus.
Ideas being kicked around mostly from Democrats include a major expansion of state government, as if last year's 14 percent spending increase wasn't enough. Some Republicans, who apparently don't want to be outdone, are also proposing new spending instead of tax cuts.
Choosing not to cut taxes is choosing government over private-sector growth. That's a bad choice.
The single most effective policy to keep the economy growing is to reduce taxes. And the tax cut that does the most for economic growth is a cut in marginal income tax rates.
The Arizona Free Enterprise Club's proposal to cut marginal income tax rates 10 percent across-the-board is responsible and equitable. It doesn't allow lawmakers to pick who qualifies for a tax cut and who doesn't. It's our version of targeted tax cuts, except that it's targeted to everyone, including small-business owners, entrepreneurs, employers and employees.
Steve Voeller is president of the Arizona Free Enterprise Club, a pro-growth, low-tax and limited-government advocacy group.
A version of this article originally appeared in the Arizona Daily Star . http://azstarnet.com/opinion/105968
Key Links:
-Goldwater Institute: "The Right Cure for What Ails Us: A Prescription for Comprehensive Tax Reform"
-Taxpayer's Network: "Taxes and Economic Growth"
- Arizona Capitol Times: "Time Is Right For Substantial Tax Relief"
- Arizona Republic: "Cut state income tax and start counting the cash"
