The slow-and-steady approach that Gov. Jan Brewer has taken to tax cuts and incentives led her to veto a bill meant to ease the burden of corporate income taxes.
Brewer on Wednesday vetoed SB1552, saying the bill would cost Arizona $33 million a year at a time when the state is still struggling with deficits and a lagging economy. The bill would have allowed Arizona-based companies that provide services in multiple states to determine their income tax liability based on the state where the sales occurred.
In her veto letter, Brewer emphasized her position that tax reforms must be phased in to avoid draining money from Arizona’s already depleted general fund, much as the Arizona Economic Competitiveness Package, also known as the jobs bill, phased in a series of cuts from 2015 to 2018.
“Given our current fiscal condition, we cannot afford this accelerated implementation schedule,” Brewer wrote. “My concern about the immediate implementation of structural tax cuts for business is well known.”
The governor said she is open to discussing similar tax reforms with backers of SB1552 that the Legislature could take up in 2012.
Sen. Rick Murphy sponsored the bill.