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Tax cuts in H2250 would cost $940M

A House bill that aims to spur economic growth through tax cuts and incentives for businesses would cost the state nearly a billion dollars when fully implemented in 2017, according to a report by legislative budget analysts.

The measure, H2250, which passed the House on Jan. 28, would reduce individual and corporate income taxes on a staggered basis starting in 2012. It also would phase out the state property tax.

According to the Joint Legislative Budget Committee, the total loss by 2017 would be about $940 million. Reducing the individual income tax by 10 percent will cost the state $361 million. A reduction in corporate income taxes will cost about $200 million. Eliminating the state property tax will cost about $302 million.

The Joint Legislative Budget Committee said the report reflects a “static” analysis that doesn’t account for new business that the tax cuts will spawn.

A model used by other states showed the economy will generate between 5 and 18 cents for every $1 in tax cuts.

The report was made public on Feb. 12. The House had tried earlier in the week to tack H2250 to a budget bill being considered during special session. But Senate President Bob Burns said the bill would not get a hearing in the Senate until all budget work was finished.

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These members of the Martin Gold family are standing in front of the first large steam engine and threshing machine in the Phoenix area. They are, from left, Martin Gold; his daughter, Rose; an unidentified farmhand; Gold’s daughter, Helen; Dave Martinez; an unidentified young woman; and Gold’s stepson, Ulysses Schofield. The photograph was taken during the harvest in July 1914. Gold brought the first steam thresher to Phoenix.

Martin Gold, Phoenix pioneer (access required)

By all accounts, Martin Gold was a humble and hard-working man. He was popular among the immigrant community, especially the Mexicans—who called him Don Martin—because of his facility with languages.