Originally Published: July 29, 2010 9:59 p.m.
Following is the third in a series of five questions The Daily Courier asked the Republican primary candidates for two seats in the Arizona House of Representatives District One. Their answers are paraphrased.
Q: What should the Legislature do to help Arizona's economy?
Noel Campbell - Arizona needs lower corporate and small business taxes because it's not competitive now.
It's not fair that only 40 percent of adults pay income taxes. We need to lower the individual tax rate threshold so more people pay taxes and therefore more people care about tax rates. Even better, replace the income tax with a sales tax or "fair" tax.
Karen Fann - My plan is "revisit, reduce and reinvest."
First, we need to revisit state government programs and cut what isn't necessary.
Second, look outside the box and see how we can reduce waste.
Third, reinvest in infrastructure where it creates jobs.
Arizona has some of the highest business and personal property tax rates in the country. We're running businesses out of here. We need to work with businesses to see what we can do to help them move here instead, including tax cuts.
The personal property tax should go away. Business owners pay sales tax on new equipment, then every year they continue to pay personal property taxes on that same equipment. Imagine if people had to do that at home.
Andy Tobin - I have a plan to create jobs. Arizona's tax structure is not competitive and it discourages new businesses from coming here. Our corporate income tax rates and business personal property tax rates are too high.
My plan to reduce those taxes wouldn't take effect until the state's temporary sales tax increase starts going away. My plan would reduce state revenues by $38 million annually, but only if you assume it wouldn't create new jobs.
My plan would eliminate the corporate income tax over seven years, after businesses invest $500 million on new infrastructure. It would expand enterprise zones, which would be great for rural areas. It would offer job training for new employees, and the cost would be covered by increases in tax revenues generated by the new employees.