It looks like Arizona Legislature is trying to get business friendly. I applaud that they are trying to do something. I just think they don’t get it. Why is this state hell bent on simply attracting a multi-billion dollar manufacturing/production facility of a multi-national corporation? Don’t get me wrong we should be willing to do this. However, this should not be our ONLY strategy as it is not fruitful long term.
The best way to build an economic base is to support the local companies that already choose to call this their home. As they rise on the success scale they will give back far more to the community than a production plant of a foreign company that simply employs people here. Most importantly the executives of a company take the lion share of the income generated. Having those executives native and supportive of Arizona means that they will invest back in spades. Simply look at the PayPal mafia model for how this works.
So while House Bill 2250 seems great to attract companies doing $150 million in construction and adding 150 jobs by cutting their property taxes from 20% to 1% for 10 years, it doesn’t help build the real future. It really only helps deals that are already under way. Instead let’s get serious. Let’s cut property tax for ALL owner occupied arizona businesses from 20% to say 10 – 15%. (Offset this by raising Residential Property taxes which are FAR TOO LOW)
If you must keep it to only those reinvesting dollars in a property. Lets make it reasonable. $250,000 (instead of $150,000,000) and employs at least 10 people. Don’t cut it down to 1% instead cut it to say 10 – 15%. If you want to be serious about the economy you have to be serious about small business. End of story.