Posted on 01/10/2005 3:40:27 PM PST by hsmomx3
Arizona Gov. Janet Napolitano wants to cut taxes for manufacturers who don't ship their jobs overseas, as well as for small businesses and private research and development collaborations with state universities.
In delivering her State of the State address Monday at the state Capitol, the moderate Democrat also projected a $100 million budget surplus and criticized the Bush administration and the Republican Congress for trimming homeland security spending.
Napolitano's tax plans including expanding R&D tax credits for companies that partner with state universities, eliminating personal property taxes on small businesses and offering relief to manufacturers that keep jobs in the state.
Manufacturing has shed more than 40,000 jobs in the state since 1998, with numerous plants and positions being moved offshore to cheaper foreign labor markets, particularly in China.
"We should give tax relief to industries that manufacture goods in Arizona and export them all over the nation and to the world," said Napolitano in her annual address to the Legislature. "Let's export our goods and not our jobs."
The tax proposal is the second major anti-outsourcing/offshoring effort by Napolitano. In 2004, the governor instructed state agencies not to award contracts to firms that will ship that state work to offshore locations.
Business groups oppose that procurement policy but favor the R&D and small-business tax help backed by the governor.
The governor has not yet taken a stance regarding a $200 million business property tax cut that is the top priority of business groups such as the Arizona and Greater Phoenix chambers of commerce.
Republicans, who control both chambers of the state assembly, favor cutting business property taxes. Business groups say those rates are too high and stunt business investment in the state.
The governor also said Monday she will propose funding in her budget to help the working poor with child care costs, to further fund statewide voluntary all-day kindergarten, to provide new money for a planned downtown medical school and will again not offer any tax increases.
Napolitano and rival Republicans will unveil formal budget plans in the coming days. The governor is projecting a $100 million surplus thanks to strong revenue growth and efficiency savings and has a more positive fiscal outlook than Republican leaders.
GOP House Speaker Jim Weiers told the state chamber last week he expects a budget deficit of $300 million to $500 million. GOP lawmakers are worried about growth in voter-mandated indigent health care and education costs.
The governor also criticized the federal government for cuts in homeland security allocations for the state and in securing the Mexican border.
She did not mention business and Republican-backed tort reforms or conservative social issues such as a gay marriage ban which are expected to be key issues in the 2005 session and the 2006 elections, which could feature a governor's race between Napolitano and GOP Scottsdale Congressman J.D. Hayworth.
Even though she said no tax increases how the heck does she intend to pay for her pet projects???????
Please, get this lady out of office!!!!!
Well how about that! An admission by a high tax liberal that taxes drive business's away. Who would have thunk it?
"The governor also criticized the federal government for cuts in homeland security allocations for the state and in securing the Mexican border."
Nice of her to fault others when she is in favor of giving illegals whatever they want at OUR expense.
Sheesh!! Didn't she once says she going to cut corporate tax loopholes? Who actually believed her?
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