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Brewer: No tax cuts while asking for tax hike

Gov. Jan Brewer said she will not approve corporate tax cuts after asking Arizonans to support a temporary sales tax increase, apparently closing the door on the cuts sought by conservative lawmakers and the business community.

“I’ve been on the record saying that there is no way that we’re going to ask the people of the state of Arizona to vote for a temporary tax, and then come back and do business tax cuts,” Brewer said.

At a May 11 press event, Brewer cast her ballot for Proposition 100, the temporary one-cent sales tax increase that will go before voters on May 18. After the press conference, Brewer said she still supports some kind of tax reform, which she touted as part of her five-point economic and budget plan in March 2009, but that she could not support H2250, the “jobs bill” that included a raft of corporate tax cuts, as well as economic development incentives.

H2250 died in the Senate. Brewer had said she did not want corporate tax cuts to start phasing in while the Prop. 100 sales tax hike was still in effect, and drafted an alternate “jobs package” that did not included any tax cuts.

“Certainly the jobs bill that was on the table was not something that I could support. It should be based totally on incentives. It shouldn’t just be a tax cut,” she said.

Brewer emphasized that that she signed two budgets in March, one of them a contingency plan that will cut nearly $900 million from the budget if Prop. 100 fails. More than $400 million of the cuts will be in K-12 education.

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