Corporate welfare tax give-away plan passes Senate Finance Committee

Posted by AzBlueMeanie:

Ideology trumps facts and reality for the GOP Taliban. They continue to cling to the entirely disproved and discredited supply-side "trickle down" GOP economic theory because it is faith based — they believe in things which are demonstrably and provably false. They are delusional, and fiscally irresponsible. They are a threat to the future of this state.

The Senate Finance Committee voted 5-2 on Monday on a party-line vote to approve the strike-everything substitute amendment for House Speaker Kirk Adams' corporate welfare tax give-away plan (that he laughingly refers to as a jobs creation bill) HB2250, that will cost the state an estimated $60 million in the 2011-12 fiscal year and nearly $81 million the following budget year.

The party-line vote came with broad, though not unanimous, support from the business community (i.e., corporations), and overwhelming opposition from health and human services advocates, who say the permanent tax cuts will create further hardships for Arizona families. (Arizona Guardian, subscription required). It will also increase the structural tax revenue deficit in future years.

Democratic leadership held a press conference after the committee vote to explain the reckless and fiscally irresponsible actions of the GOP Taliban on this corporate welfare tax give-away bill.

Democrats said the fact the tax-cut discussion is happening a month before voters are being asked to support a sales-tax increase points to the premature nature of HB 2250.

"We talk about this being a job-creation bill, but most of the provisions aren't implemented for several years," said Sen. Ken Cheuvront, D-Phoenix, so the Legislature should wait before pulling the tax-cut trigger. Senate committee advances 'jobs bill':

Dana Naimark, representing the Arizona Budget Coalition, was the only person to testify against the bill, calling it corporate welfare at a time state budget cuts are kicking people off welfare programs.

She noted that lawmakers contend they had to eliminate the KidsCare health-care program because they couldn't afford its $18 million cost. Yet the state would lose $60 million in the first year the tax cuts would take effect, she noted.

The bill now goes to the Senate Rules Committee before the full Senate can consider it.

The bill may get further changes, Adams said, acknowledging that the Governor's Office has some ongoing concerns, which he did not detail.

Call your state senators and tell them to "kill this bill" (strike-everything amendment).