Business & Job Creation
Businesses need a friendly and fair business environment so they can compete, innovate, and create jobs. We’re keeping politicians from playing favorites by offering special deals and tax breaks to the favored few.
May 16, 2005 was a great day for fans of free markets and especially wine. For on that day, in Granholm v. Heald, a case I had the honor of arguing, the U.S. Supreme Court struck down state laws prohibiting the direct interstate sale of wine to consumers.
When state legislatures reconvene in January, a priority for many will be passing some kind of “jobs” bill. What form that might take is open to debate, but there are already lessons to be learned on what not to do.
In 2009 the Arizona legislature, like many other states, passed a bill providing “tax incentives” (AKA subsidies) for renewable-energy industries. The legislature partly responded to pressure from those who thought they’d found the next big thing in "green jobs." It also followed on the heels of a new solar panel factory in Tucson, Arizona.
State legislators looking to spur job creation should reject federal stimulus efforts as a model. In fact, there are at least two lessons in what not to do that policymakers can learn from President Obama’s failed effort to energize economic growth through government spending and temporary tax gimmicks.
Want a thriving economy? The Goldwater Institute knows that best business climate is one where low taxes and minimal regulation benefit all employers – not one where subsidies and special tax breaks offer an advantage to a chosen few. When a government agency can decide which businesses to favor, it opens the door for the misguided pursuit of investment fads or, at worst, the potential for corruption and abuse. Our research offers sound policies for government, and we’re not afraid to fight when we see bad ideas that put taxpayers at risk.
SIERRA VISTA -- When the city of Phoenix decided to give nearly $100 million subsidy to a Chicago-based mall developer, it wasn't just inappropriate, it was unconstitutional, said Clint Bolick, litigation director of the Goldwater Institute.
Bolick and other officials from the Goldwater Institute in Phoenix visited Sierra Vista on Wednesday to share their current work and hear about local concerns at the Windemere Hotel and Conference Center.
The Goldwater Institute is asking the state Supreme Court to strike down rules that require Arizona Public Service Co. to get a certain percent of electricity from renewable sources such as solar.
The organization filed a petition last week arguing that the Arizona Corporation Commission overstepped its authority by requiring APS to charge customers a monthly tariff to support renewable energy.
Officials said they are hopeful that by targeting the APS tariff, they can get the renewable-energy rules stricken and free other state utilities from the requirement.
In the upcoming election, three of the five seats on the Arizona Corporation Commission (ACC) are up for grabs. Besides having the authority to set utility rates, the ACC has created a renewable energy standard that, as it currently stands, will require utility companies to produce 15 percent of their energy by renewable means by 2025.
Kris Mayes, one of the current commissioners and one of the strongest advocates of the standard, contends that the standard will help preserve the environment and lower electricity costs over time.
A Maricopa County Superior Court judge on Feb. 11 heard arguments over the constitutionality of a $97 million tax rebate granted by Phoenix to lure the development of a major North Phoenix shopping mall.
The tax break granted by the city is being challenged Goldwater Institute attorney Clint Bolick, who argues the citys deal with the CityNorth project violates state constitution prohibitions of governments applying gifts and special laws to individuals and businesses.
PHOENIX -- When the upscale stores -- Bloomingdale's, Nordstrom and other magnets for affluent shoppers -- open their doors at the CityNorth "urban village" now being built, Phoenix taxpayers will be there, sort of. They are providing a $97.4 million subsidy to the Chicago-based developer of the 144-acre project that will include residential, office and hotel facilities.
NORTHEAST PHOENIX - A controversial $100 million deal between the city of Phoenix and a developer was argued Monday, but a Maricopa County Superior Court judge issued no ruling in the case affecting CityNorth, a new, high-end mixed use development in northeast Phoenix.
After 90 minutes of argument on Monday, Judge Robert Miles said he knows his decision, whatever it is, will be appealed.
"I am under no illusions that I will have the last word on this subject," Miles said. advertisement