On Wednesday night, lawmakers in Arizona concluded their session for the year 2017. Just before session drew to a close, the lawmakers approved tax breaks that will benefit corporations. In addition, some breaks for corporate jet purchasers also made it through. These were the major items passed though and they have been approved with the assurance that they will boost the economy.
More about the tax breaks
The lawmakers have now put in place angel investors tax credit system which encourages capital infusion to small companies to the tune of $10 million. In another move aimed at boosting small businesses in the area, the legislature also brought in a measure that allows more such businesses to get the benefits of the state job training fund by expanding eligibility criteria.
The job creation tax benefit which should have expired this year was extended up to the year 2025. This will benefit bigger companies. Another benefit that big corporate players will enjoy is that property tax cuts have been brought in for companies in special trade zones. The main players in this area, such as Intel, already enjoy very low tax rate on equipment acquisitions and this additional benefit will cut costs for them quite substantially. A tax break would exempt the NetJets from sales taxes. NetJets is a corporate jet seller and the company stands to benefit immensely from this measure. This measure is part of the Intel bill, which makes it easier to get through.
Democrats oppose the tax breaks
The minority opposition has objected to the tax breaks. The Democrats believe that special interests are taking the spotlight under the Republican regime and tax breaks benefiting companies are not going to boost the economy. They have also objected to the fact that the government uses lack of revenue as an excuse when major issues like public schools or public services are brought up yet is promoting diminishing revenues via tax breaks from corporate.
Left without resolution is the welfare benefit that thousands will benefit from if the 2015 law is revoked. However, this has not been done in full and only partial benefits have been restored to the recipients. Democrats have also highlighted this as a cause of complaint while pointing out that teachers have also been given only a minor pay escalation in the $9.8 billion budget that was brought into force last week.