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Posted on 08/03/2006 9:21:22 AM PDT by GoldwaterFellow
Phasing out the corporate income tax would keep Arizona at the head of the pack
At 6.97 percent, Arizona has one of the highest corporate income tax rates in the West. Despite this fact Arizona's economy keeps motoring along. Unemployment remains low and average earnings continue to rise, now just over $40,000. But like any NASCAR champion will tell you, if you want to stay ahead of the pack, you have to improve every year.
Hard working entrepreneurs are responsible for the state's growing prosperity. The best thing Arizona policymakers can to do to help them keep on keeping on is lower corporate income taxes.
Nevada, Washington and Wyoming don't impose corporate income taxes at all. And Colorado and Utah offer lower tax rates, 4.63 and five percent respectively. Adjusting for population, more than twice as many new businesses open their doors in these five states than do in Arizona. In race terms, that would get Arizona a yellow flag for economic progress.
To stay ahead, Arizona could rev its economic engine by phasing out the corporate income tax.
Noah Clarke is an economist with the Goldwater Institute Center for Economic Prosperity.
Doing away with income tax all together would be much better for this country. It is no wonder that businesses are moving overseas, and that many people with good ideas refuse to start companies just so that they can have all their hard earned income extorted by the IRS.