No $1.4 million for transplants, but . . .

by David Safier

Remember how Brewer promised the $538 million in business tax cuts wouldn't be paid for by the one cent sales tax hike? That's because the tax cuts are supposed to be delayed until after the sales tax is phased out. And that, says Brewer,

. . . keeps faith with the promise she made to voters last year, when she asked them to approve a three-year increase in state sales taxes, that the proceeds would not be used to finance tax cuts for others.

But just above that keeping-faith statement by Brewer, the article puts in a bit of a hedge:

And the biggest cuts – particularly the $200 million reduction in the corporate income tax rate – will be phased in, but not until in 2014. [bold face added]

The biggest cuts? Hmm. So there will be business tax cuts now, even though Brewer said the sales tax hike wouldn't be used to finance the tax cuts. How much cutting will we see right away?

Legislative staffers say the plan would reduce state revenues this coming budget year by $38 million; by 2018, when fully implemented, the cost is pegged at $538 million. [bold face added]

Oh. Only $38 million in business tax cuts this budget year. Apparently, we can handle $38 million in cuts. A mere trifle. A rounding error. I guess it's not a budget buster like the $1.4 million it would cost to fund life-saving transplants. Or more funding to keep our Health Care System going. Or more for education. We can't afford those. But $38 million in cuts to big business? That's pure supply-side economics. I mean, look at how well that supply sider stuff worked for George Bush. Jobs created by the millions. Virtually no job growth during his presidency.