The following column originally .

There is a concerted effort underway in Washington to undermine and overturn the very policies that have made states like ours economic leaders.

One of our states, Texas, does not have an income tax, while Arizona just a low flat income tax. Our states’ regulatory burdens are light, education innovation is encouraged, and parents have choices where they send their kids to school. We are also right-to-work states, meaning labor union membership is strictly voluntary.

That our states embrace policies like these makes it no coincidence that we regularly show up on lists of the country’s fastest-growing states or states that offer the best business environments.

But some officials on Capitol Hill and within the Biden administration have spent the past several months attempting to put handcuffs on our pro-growth strategy.

When the American Rescue Plan Act passed in March, Treasury officials told states they better not think about cutting taxes. The administration later that states could extend relief to their taxpayers under certain circumstances, which were laid out in a Treasury that makes its point in a brisk 150 pages.

Congress got in on the micromanagement act and added a dose of fealty to anti-school-choice special interests with buried in an appropriations bill that says public charter schools shouldn’t be able to contract with private sector entities like school lunch providers or back-office help if they want to maintain access to federal funds. Some schools might be forced to shut down and their students would be left in the lurch, but maybe that’s the point. Not surprisingly, the bill says nothing about educational quality or student performance.

Congress and the administration come together in bigfooting the states on the Protecting the Right to Organize, or , which would eliminate voluntary union membership and states’ right to work laws. The bill has and Senate Majority Leader (D-N.Y.) says he’ll bring his chamber’s version of the bill to a vote if he can convince a few more Democratic holdouts to come on board.

Not only does the PRO Act crowbar union-backed labor policy into states’ workplace laws, but it eviscerates labor mobility and worker choice.

Want to be an independent contractor? Not so fast, says the PRO Act, which attempts to bring California’s unpopular AB 5 law — which voters there amended last November after app-based gig workers protested — to the rest of the country, making it much harder to be an independent contractor. Fewer independent contractors means more potential union members.

These heavy-handed top-down approaches to lawmaking not only turn federalism on its ear, but they also create a drag on the post-pandemic economic recovery at the very moment we should be incentivizing creative thinking to spark job growth. Instead, Congress and the administration have embraced the tedious sort of policies that have caused millions of Americans to pull up stakes and move to more welcoming economic climates like ours.

Arizona and Texas have proven that if given the opportunity to innovate in our laboratories of democracy that we can help cultivate environments that encourage and accelerate job growth. If you’re looking for examples on how to bounce back after more than a year of pandemic-induced disruptions, look to our states.

Our states are moving quickly. We don’t expect that Washington will take a lesson from us, but it shouldn’t force us to adopt policies that will only slow us down.

Danny Seiden is the president and CEO of the Arizona ���ϳԹ��� of Commerce & Industry. Glenn Hamer is the president and CEO of the Texas Association of Business.

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Glenn Hamer, who has served the Arizona ���ϳԹ��� of Commerce & Industry as president and CEO since 2006 and who led the organization’s ascendence to become the state’s most influential business advocacy group, announced he will be departing his position to become the next president and CEO of the Texas Association of Business. 

Hamer’s 14-year tenure has been marked by tremendous growth for the ���ϳԹ��� and dozens of public policy victories that have dramatically enhanced Arizona’s competitive standing, including the passage of two major economic development packages that resulted in a reduction in the state’s corporate income tax rate, lowered the commercial property tax assessment ratio, encouraged capital investment and more. 

Other policy accomplishments have included major reforms in education, health care, civil justice, the regulatory environment, water stewardship, and labor. 

Arizona now appears regularly on top-tier lists ranking state economies. 

TAB Board Chairman G. Brint Ryan, president and CEO of Ryan, an award-winning global tax services and software provider, says TAB is excited to welcome Hamer to lead the association’s efforts to bolster Texas’ reputation for having a welcoming business environment.

“As TAB Chairman for 2021, I’m very excited to work with our new CEO this year. Glenn brings a proven track record of success and I’m confident that he can lead us to a bigger, better, and more successful TAB,” Ryan said. “Texas needs and deserves a strong state chamber, and this is the first step we’re taking to make that happen.”

Throughout his time at the Arizona ���ϳԹ���, Hamer focused on elevating the state’s international profile, and was the state’s most vocal advocate for the passage of the United States-Mexico-Canada Agreement, or USMCA, the successor agreement to NAFTA. He also has been a consistent proponent at a state and federal level for repairing and reforming the nation’s immigration system. 

“We have been so fortunate to have had Glenn at the helm of the ���ϳԹ��� for the last 14 years. The Arizona business community could not have asked for a more talented, dedicated advocate,” Arizona ���ϳԹ��� Chair Dawn Grove of Karsten Manufacturing said. “The entire membership of the ���ϳԹ��� has had a friend in Glenn. We will miss him greatly, but we wish him only the best as he moves on to champion free enterprise and American competitiveness for businesses in another leading southwestern state. Texas’ job creators are lucky to have him.” 

The ���ϳԹ���’s membership ranks expanded greatly under Hamer’s leadership, and included the 2008 merger with the Arizona Association of Industries, now organized as the Arizona Manufacturers Council under the ���ϳԹ��� umbrella. 

“It is no coincidence that Arizona’s manufacturing environment has experienced a significant expansion during Glenn’s tenure,” AMC Chair Mark Gaspers of Boeing Co. said. “Arizona is now a manufacturing hotspot for product sectors ranging from semiconductors to aerospace and defense, next generation cars and trucks, appliances, foods and beverages, and much more. Glenn’s combination of policy expertise, advocacy, and strategic organizational skills are second to none. Arizona’s manufacturers thank Glenn for all he’s accomplished and for leaving our state better than he found it.” 

Hamer credited the Arizona ���ϳԹ���’s members for the organization’s success.

“Leading the Arizona ���ϳԹ��� of Commerce & Industry has been the honor of a lifetime,” Hamer said. “Even in the face of a global pandemic, the ���ϳԹ��� is stronger today than it ever has been, and that’s because of our members. The board members and business leaders I’ve had the privilege to work with stood shoulder to shoulder with me as together we shaped the ���ϳԹ��� into the influential voice for job creators it is today. I’ve also been blessed to have some incredible coworkers over the years who were absolutely essential to the ���ϳԹ���’s success.” 

Hamer’s accomplishments in Arizona earned him nationwide recognition. He chairs the U.S. ���ϳԹ��� of Commerce’s Committee of 100, an assembly of the nation’s leading chambers. 

The Texas Association of Business, headquartered in Austin, is Texas’ state chamber of commerce, representing the business community at the state Capitol and before the Texas congressional delegation. 

“I am moving from one of the country’s top states for economic growth to another state with a strong, expanding and diverse economy,” Hamer said. “While I’m looking forward to this new challenge, leaving Arizona is not easy. I also thank my wife, Tali, for her support and contributions to the ���ϳԹ���’s success over the past 14 years. Together, we have been blessed by the mentorship and friendship of so many great Arizonans, and we could not ask for a better place to work and raise our young family. I know this state has only bright days ahead.” 

Hamer will remain in his current role until February 18, at which time an interim president and CEO will be named by the ���ϳԹ��� board of directors while a nationwide search is conducted for a successor.

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State budget analysts brought heartening news to citizens, businesses and schools in the governor’s proposed budget for fiscal 2022. 

First and foremost, there will not be a budget deficit as predicted earlier this year when the pandemic caused a spike in unemployment and disruptions to commerce statewide.

Governor Doug Ducey also wants income tax cuts amounting to $600 million over the next three years, state budget analysts said during a press conference revealing the proposed budget on Friday. 

In fact, Arizona is doing so well, revenues are projected to provide a healthy surplus. Arizona’s healthy economic standing means there will be $389 million to help students who have suffered pandemic-induced learning losses to catch up.

“Arizona is resilient, and we continue to move forward in the face of hardship, loss and disruption,” Governor Doug Ducey said. “Our budget will keep us moving in the right direction, and it makes strategic investments in our greatest areas of need — K-12 education, forestry management, public health and much more.

“Kids have missed out on important learning opportunities and classroom time, and we need to use our resources to help students in need catch up and ensure students, regardless of background, stay on the path to success.”

Keeping Arizona competitive on world stage

The governor’s plan includes funding for education and school choice,  workforce training, wildfire prevention, high speed internet for rural areas, covid relief for businesses and healthcare providers, highway and prison infrastructure, and much more. 

To keep Arizona competitive on the world stage, the budget calls for $600 million in cuts to income taxes “across the board” for citizens and small businesses over the next three years. 

Business groups including the Greater Phoenix ���ϳԹ��� of Commerce and Arizona ���ϳԹ��� of Commerce and Industry applauded the proposed plan. 

“This budget is not only fiscally responsible, but it is loaded with meaningful reform,” said Glenn Hamer, president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry that represents thousands of employers across the state. “Arizona is now spending more from all sources on a per-pupil basis than at any time in the state’s history.

“The governor’s education initiatives will help our students make up for any pandemic-induced learning loss and will help parents, including those with limited transportation options, find the best educational fit for their kids, something that has become even more important during the last several months of educational disruptions.”

The $12.6 billion plan is the largest in the state’s history. Now, the governor and state Legislature will begin negotiations to produce a final spending plan before the conclusion of the fiscal year on June 30. 

Federal CARES Act relief helped state stay the course 

Arizona is in a stronger fiscal position than many states around the country with 97 percent of jobs lost during the pandemic now recovered, budget analysts from the Governor’s Office of Strategic Planning and Budgeting (OSPB) reported. 

About $38 billion in pandemic relief from the federal CARES Act this past year is one reason the state is faring well. Arizona’s healthy pre-pandemic economy and a $1 billion rainy day fund also saved the day, they said. 

Here’s are some of the highlights:

Income tax cuts 

The budget proposal includes $200 million in income tax cuts for fiscal 2022, which begins July 1. Ducey, who will be termed out of office this year, wants to extend his legacy of lowering taxes by including plans to extend the $200 million tax cut another two years. 

While details will be hammered out over the next few months, the tax cuts will help taxpayers “across the board,” the governor said. 

Education, school choice, civics education, rural broadband

In addition to $389 million to help students catch up, the budget includes an additional $250 million for K-12 education above and beyond inflation. 

Funding is targeted for programs to provide COVID-19 relief, rural broadband, early literacy, and additional civics education programs. 

Among the biggest ticket items for K-12 education are: 

• $119 million for school building renewal grants

• $52.6 million to complete two schools already under construction and start construction on five new schools

• $10 million to inform families about education options and support transportation innovations that expand school choice

Wildfire prevention with inmates helping out

The proposed budget includes $24 million for the Arizona Healthy Forest Initiative, a joint program between the Departments of Forestry and Fire Management and Corrections, Rehabilitation & Reentry. 

The Healthy Forest Initiative expands opportunities for state inmates to learn crucial job skills for post-sentence employment by treating our state’s land and wildlife, putting a greater focus on fire prevention.  

Health and welfare

Ducey’s budget also includes money to help Arizona’s most vulnerable citizens including children and the elderly with funding allocated for long-term care surveyors to address high caseloads and backlog. 

Items in the proposed budget with health and safety in mind include:

• $92.7 million in FY 21 supplemental funding for the stabilization of child care centers and to further support providers during the pandemic

• $25 million for the implementation of the Family First Prevention Services Act, focused on keeping children safely with their families

• $18 million to fund the continuation of the Child Care Waitlist and for a new pilot program that provides child care to children of parents pursuing education and nursing degrees

Higher education 

Arizona’s three public universities have been on the front line of research and action to address COVID-19 issues in the state. CARES Act and state funding to help reimburse them and  continue to produce an educated workforce includes:

• $115 million in COVID-19 relief, provided via CARES Act funding

• $35 million to support the public universities’ workforce development for the New Economy initiative

Public safety 

Prison construction including revamping outdated infrastructure is part of the budget including $54 million to address building renewal needs across the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR), including $25 million for critical safety projects at the Eyman Complex in Florence. 

The budget includes funding to recruit and retain Department of Public Safety (DPS) employees, equip DPS officers with body cameras and necessary support for video and IT management, and update the statewide land mobile radio network. 

Highway infrastructure, online portal for new businesses

Other items in the budget are the launch of a “hoteling pilot program” to increase options for government workers to continue to work remotely and a new online portal where new businesses can complete all state paperwork requirements.��

It also allocates $33.1 million to fund a major expansion of the I-40 West broadband corridor, in addition to $40 million in Federal CARES Act funding for the I-19 and I-17 broadband corridors.

Rainy day fund still holding near $1 billion 

Another positive feature of the budget is Arizona’s $1 billion rainy day fund. It remains almost fully intact at $954.4 million. While many states used these funds to address shortfalls in response to the pandemic, Arizona last year used $55 million to address one-time public health expenses, not shortfalls, budget analysts said. 

To see a complete list of details in the budget, go to:

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Supporting small businesses still struggling during the pandemic, bolstering the state’s stressed healthcare system, and reducing the influence of out-of-state interests on Arizona’s ballot initiative process are some of the top items on the Arizona ���ϳԹ��� of Commerce and Industry’s wish list for state legislators this year.  

The ���ϳԹ��� revealed these and a host of other policy recommendations Friday during its annual 2021 Legislative Forecast Luncheon. Governor Doug Ducey and legislative leaders also discussed their priorities at the event.

“The health crisis has upended not only the Arizona economy but the entire world in this global pandemic,” said Glenn Hamer, president of the Arizona ���ϳԹ���. “Arizona has weathered this pandemic downturn just about better than any state and, as I’ve said many times, our governor has had just the right touch as we have weathered this once-in-a-century event.

“But some of our industries like tourism and hospitality continue to struggle.”

Hamer praised “heroic” healthcare providers and workers in saving lives. He also decried the violent protest that took place at the nation’s Capitol last Wednesday, resulting in five deaths. 

Almost 900 attend event to hear recommendations from business, lawmakers 

The ���ϳԹ��� and the Arizona Manufacturers Council hold the event every year to release their of policy recommendations as well as hear from the governor and legislative leaders about their priorities for the legislative session that kicks off today.��

Almost 900 people attended the virtual event including dozens of local, state and federal elected officials and business and community leaders. Hamer thanked the sponsor of the event, Cox Communications, for providing the internet infrastructure that has proved essential for thousands of job creators and their employees to continue thriving during one of the “most disruptive economic periods in history.”

Gov. Ducey calls on everyone to prevent the spread   

This year’s short-term priorities were quite different from last year when state leaders grappled with topics like how to keep up with mushrooming population growth and the booming economy. 

This year, ensuring Arizona citizens receive Covid-19 vaccines quickly and bringing the economy to full recovery were top goals of all who spoke. 

Governor Doug Ducey made several remarks about his priorities for the session. Arizonans’ health is the number one priority now. Getting Arizona citizens vaccinated is critical, he said. 

“This is a modern medical miracle that I don’t think anyone could have foreseen in March,” Ducey said about the successful race to get a vaccine for the deadly virus. “Not only do we have the vaccines here from Pfizer and Moderna and others on the way, they are in the state and they are going into people’s arms.”

Ducey, whose 97-year-old grandmother just received her vaccine, said elderly citizens and health care and essential workers will be vaccinated first before the general public at large. 

Government will also focus on helping the underserved populations in tribal and rural areas.

Communicating that this vaccine is safe and effective is another priority to “get us back to normal as quickly as possible,” the governor said.   

Catching students up post pandemic 

As vaccines roll out, providing resources to education to bring children back up to speed in academics is another important step for economic recovery, Ducey said. Jobs and the economy will naturally follow, he said, and “no state is better positioned than the state of Arizona” to succeed.

Other priorities mentioned by the governor were to continue to work to strengthen relations with Mexico, secure public safety and commerce at the border, and champion Arizona tourism and exports on the world stage. 

Legislative leadership focused on covid, education, small businesses, jobs 

The event also featured a “fireside chat” with Senate President Karen Fann, Senate Minority Leader-elect Rebecca Rios, Arizona House Speaker Rusty Bowers, and House Minority Leader-elect Reginald Bolding, who spoke about what their priorities will be for the session. 

All stated that helping citizens and businesses recover from the pandemic is a major goal. Pressing issues include helping the unemployed get back to work, preventing families from being evicted from their homes, attracting and retaining business and industry, supporting education, and funding infrastructure like broadband access and highway construction.  

���ϳԹ��� business agenda unveiled 

At the event, the ���ϳԹ��� and Manufacturers Council provided digital copies of comprehensive policy recommendations for the year. Hundreds of goals with business in mind include topics around education, free trade, civil justice reform, workforce development, the environment and water resources, transportation, tourism and much more. 

Dawn Grove, chair of the ���ϳԹ���’s , said that “first and foremost” priority will be recovery from the pandemic and mitigating the impact from Proposition 208. 

The proposition, adopted in November, created a new tax for top earning individuals and couples, but also is expected to affect tens of thousands of small businesses. These are “pass through” entities, meaning they do not file their income taxes as corporations. Instead, they file under the individual tax code. 

Under the new law, Arizona’s top income tax rate has jumped from thirteenth lowest in the nation to the ninth highest, going from 4.5 to 8 percent, a 78 percent increase, affecting individuals who earn $250,000 and joint filers who earn $500,000. Small business owners who file under the individual tax code are subject to the tax as well. 

The new tax rate could not only hurt Arizona’s small businesses — companies with 500 or fewer employees — but it could dampen investment here, Grove said. 

Among measures being proposed to help the small business community and keep the state a desired location for new industry are reductions in commercial property taxes. 

���ϳԹ��� officials will also be pressing state lawmakers to enact laws to protect employers, cities and towns, and organizations from “predatory” Covid-19 lawsuits. 

Reforming state ballot initiative process another high priority

���ϳԹ��� officials also will be calling on the Legislature to continue to work in a bipartisan manner, pass laws to promote educational excellence in schools, and to reform the state’s ballot initiative law that has been overtaken by out-of-staters, Grove said. 

“Arizona’s propositions, as you know, once passed can almost never be changed even when they cause the opposite of their intended results,” Grove said. “We can and we must do better together. Our second priority will be to advance reforms to protect our initiative system from out-of-state agendas and enhance the credibility of the system. 

“While recent reforms have added some rigor to the citizen initiative system, Arizona’s system remains attractive to out-of-state groups to use our ballot box to implement policies not in Arizona’s best interest, in part because they know it’s so easy to pass here and so hard to change.”

To read the full business agenda from the ���ϳԹ��� and Manufacturer’s Council, go to:  .��

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At the end of each year, Arizona ���ϳԹ��� of Commerce & Industry President and CEO Glenn Hamer hands out his Ham(m)er Awards to recognize the people and groups who contributed in a big way to the year that was. This year’s edition looks back on a year that was unlike any other.

Hit by a once-in-a-century pandemic that created an instant economic worldwide collapse, and soon after racial unrest triggered by the tragic murder of George Floyd, it’s fair to say that 2020 has been a tough year. We’ve lost more than one out of every one thousand Americans to the virus, we’re still down more than 10 million jobs and there’s continued social unease. 

But these difficulties brought out the best in many of us and that’s the focus of this year’s Hammers.

The public health heroes

Let’s start with the obvious. No group is more deserving of recognition than the frontline healthcare workers who have worked nonstop despite near-constant personal danger to keep us well and to educate us on what we should do to keep well. Our hospitals, including Banner, Honor Health, Dignity (CommonSpirit Health), Mayo and others have been working overtime on top of overtime. 

I want to especially call out Dr. Cara Christ for leading Arizona’s response. If you want the definition of an impossible and thankless job, it’s leading a state health agency during a pandemic.

A Hammer Award also goes to Dr. Amish Shah, an E.R. doc who is also a state representative. His blog posts early in the pandemic provided crucial information to the general public.

State Rep. Lorenzo Sierra deserves a Hammer for his deeply personal account of his harrowing battle with Covid that he shared in USA Today and with media outlets across the country.

Our universities stepped up massively. Led by Dr. Michael Crow, Arizona State University developed an easy and effective  for Covid that was a welcome alternative for those who don’t like something stuck up their nose. Dr. Bobby Robbins, a distinguished medical doctor, developed several efforts to assist in the pandemic, including a huge  to store vaccines. NAU stepped up under the direction of Dr. Rita Cheng as well, lending needed  in the development of vaccines. 

Testing. Testing. Testing. Kudos and a Hammer to Dave Dexter and Sonora Quest for rapidly developing the leading  for Arizonans. Testing remains critical to controlling the spread and we’re fortunate to have a major testing lab based in Arizona. 

Speaking of testing, A.P. Powell deserves a Hammer for setting up testing sites in underserved communities. A.P. also used his Bridge Forum to promote much needed dialogue between neighborhood leaders and senior law enforcement leadership. 

Our friends at Vitalant deserve a Hammer for their continuous efforts to encourage blood and plasma donations. Vitalant’s work is always essential, but in 2020 it was absolutely critical to help the scientific community learn more about Covid antibodies and convalescent plasma. Plus, they’ve ensured that blood donations can continue safely.

Frontline workers. The men and women who work in our grocery stores, serve our coffee and keep America running deserve our deepest thanks…and more. Many months ago, Peggy Noonan wrote that those who are undocumented who are keeping the gears of the American economy turning should be put on a track to citizenship. I agree. 

Over the air

Arizona’s media outlets have been essential partners in getting information out to the public throughout the pandemic.

Day in and day out, KTAR’s Jim Cross has been a go-to source for useful news about the pandemic’s impact on the state and national economies. The consummate workhorse, Jim was deservedly part of the . In addition to joining the Hall of Fame, he deserves a Hammer. I’ll let him decide which is the more flattering honor. 

ABC 15’s Garrett Archer, the Data Guru, boils down the flood of data from the state Department of Health Services into easy-to-follow daily digests. He points out positive and negative trends, avoids alarmist reporting, but also gives this crisis we’re living through the seriousness it deserves. He’s also relied on his years of experience as a congressional aide, campaign hand, and Secretary of State’s Office staffer to help us understand all there is to know about ballot counting. 

It’s also worth noting that AzDHS has done yeoman’s work in providing the public a wealth of information. I’m looking forward to seeing a daily tracker in 2021 on the number of vaccinations given across the state.

Crisis response

The Paycheck Protection Program is the most successful small business program ever developed or administered in the history of the country. The relatively smooth administration happened because multiple parties in Arizona stepped up in a major way. 

A Hammer Award goes to Paul Hickman, the head of the Arizona Bankers Association, for leading the charge. His organization was in regular contact with Capitol Hill and his member institutions were essential in getting the funds flowing to small businesses that desperately needed the help.

A Hammer also goes to David Adame of Chicanos Por La Causa for helping to save thousands of jobs through Prestamos, a Community Development Financial Institution, which issues microloans to struggling small businesses in underserved communities.

More than 80,000 Arizona companies secured over $8.5 billion in largely forgivable loans. A new round is on its way. I want to thank the U.S. ���ϳԹ��� of Commerce for the fantastic materials it distributed on PPP and other relief for businesses that have now been downloaded a billion times. 

A Hammer goes to Sandra Watson and her entire team at the Arizona Commerce Authority for putting together comprehensive programming for small businesses on how to navigate the pandemic. I believe that Sandra is the best economic development professional in America. The proof? During a pandemic it was announced that  would come to Arizona. This news would be eclipsed in the evening of the same day when it was announced that  would invest more than $12 billion and bring nearly 2,000 jobs to Arizona, the biggest deal in our state’s history. 

Sandra was charged with leading the Arizona Together fund, the business community’s response to the pandemic. This fund chaired by Eileen Klein has distributed millions of dollars in aid. Many donors deserve credit. Special recognition goes to Catherine Ivy of the Ben and Catherine Ivy Foundation for her generous $5 million donation and to Michael Bidwill for being the first to contribute seven figures. 

Speaking of the economy, a Hammer goes to Jim Rounds and the crew at Rounds Consulting Group for their outstanding work to help industries of all types not only understand the impact the pandemic has had on the Arizona economy, but also what policymakers can do to help Arizona recover in a position of strength.

A Hammer goes to Sen. Kyrsten Sinema for hosting weekly conference calls with the business community during the early stages of the pandemic. These practical calls helped to ensure that Arizona businesses were well represented in Washington when it came to Covid relief. She delivered. 

Kim Sabow and the Arizona Lodging and Tourism Association deserve a Hammer Award for rolling out the best safety program on the market. The AZSAFE + CLEAN hotel certification program is the model that can be used for other industries. Kim’s industry was hit first and worst, so credit to her for leading her industry through the most difficult period ever.

Globalization is good. A Hammer goes to Pfizer (U.S.) and BioNTech (Germany) for developing the world’s first widely distributed vaccine. Clocking in at 95% effectiveness using mRNA technology, the vaccine provides hope that other illnesses (cancer) will ultimately benefit. The key is to get as many people as possible vaccinated and as quickly as possible. The U.S. is leading the world in doses administered, with Israel leading on a per capita basis. The Trump administration deserves tremendous credit for developing Operation Warp Speed. Many experts said a speedy, safe vaccine was not possible. They were wrong. To have multiple vaccines at around 95% efficacy hit the market in less than one year is the accomplishment of this century. 

Speaking of private sector contributors stepping up to meet a global need, Honeywelldeserves a Hammer Award for its lightning-fast turnaround of its Arizona production lines to crank out millions of N95 masks. The effort was so impressive that it earned a factory visit from President Trump. Honeywell’s work in 2020 wasn’t a nice-to-have, it was must-have, and it was an inspiring display of American ingenuity and invention. 

The Hammer Award for Model Bipartisanship goes to Gov. Doug Ducey and State Superintendent Kathy Hoffman for joining together to provide smart, healthy and at times politically courageous guidance to keep our K-12 system running. Our teachers and school staff members all deserve big thanks for ensuring our kids have a safe place to go during this most disruptive period.

There’s no I in team

I’m very fortunate to have served under excellent board chairs throughout my tenure at the ���ϳԹ���, and this year was no exception.

We started out 2020 with Susan Anable at the helm, who was completing her second year with the gavel, which itself was unusual because our chairs usually rotate every year. But Susan didn’t bat an eye when the board asked her to take on a second year. No one knew then that the business community would be entering its most challenging year ever, but Susan took on the challenge with her usual aplomb and helped shift the ���ϳԹ��� into crisis response. I should also recognize her company, Cox, which has proven to be an indispensable partner in helping thousands of Arizona kids learn remotely and folks like me work from home.

In June, we welcomed Dawn Grove as our board chair. Dawn’s a longtime ���ϳԹ��� member and is recognized nationally and globally as a leader in manufacturing policy with a razor-sharp legal mind. An executive with Karsten Manufacturing, the parent company of PING, few have Dawn’s insight into what makes Arizona’s manufacturing environment one of the country’s most competitive. The fact that Arizona now has more manufacturing jobs than construction jobs is in no small part thanks to Dawn’s contributions over the years. As we turn our attention to the great Arizona economic recovery of 2021, the ���ϳԹ��� board couldn’t ask for a better business leader. 

Finally, a Hammer Award to each team member at the ���ϳԹ���, ���ϳԹ��� Foundation and Arizona Manufacturers Council. Our last regular day in the office was in mid-March. They didn’t miss a beat. The team assembled regular virtual meetings with our colleagues across the business community; presented dozens of webinars for small businesses to access relief funds; shifted each of our regularly scheduled events online; coordinated dozens of video calls for our members with leaders in government, business and academia; launched a  with the Arizona Medical Association to help businesses keep their employees and customers safe and healthy; issued  on big issues; and even cranked out a regular YouTube show on news of the day (that sometimes as many as dozens enjoy!). To top it all off, they kept me and my schedule in one piece as I shifted to mostly working from home.

I would not want to repeat 2020, but I’m thankful for my colleagues at the ���ϳԹ��� who made lemonade out of a year full of lemons.

We’re in the final months of what has been a lethal pandemic. There is light at the end of the tunnel. Please be safe and get the vaccine as soon as it’s your turn. 2020 has been tough. There’s potential for 2021 to be the year we vanquish Covid-19 and begin a new and robust expansion. Let’s make it happen.

Glenn Hamer is president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry. 

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Companies that engage in international trade could be left out in the cold as two major global free trade agreements are moving forward without the United States.  

Arizona, which trades heavily with many of the countries in both  agreements, could easily be put at an economic disadvantage if the U.S. does not act, said Glenn Hamer, president and CEO of the .

Hamer and other chamber and business leaders are calling on Washington to join one of the agreements, the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It is a revision of the former Trans-Pacific Partnership (TPP) and promotes tariff-free trade and other commercial ties with 11 countries that border the Pacific Ocean including Australia, Canada, Mexico, Singapore, and Vietnam. The CPTPP removes 99 percent of tariffs on goods and services and sets reciprocal trade quotas. If the U.S. were to join the agreement, American producers would likely see a rise in exports like pork, beef and wheat. 

“We need to be part of the revised TPP,” Hamer said. “Trade with our allies and global partners increases prosperity for businesses and consumers in Arizona, and it lowers barriers for our companies so they can export goods and create new jobs to improve the outlook for all Arizonans.”

Growing Asian consumers target of RCEP agreement

The other major trade deal, the Regional Comprehensive Partnership Agreement (RCEP), was signed last month by China and 14 Asian neighbors and is expected to strengthen their hold on trade in North and Southeast Asia. 

It creates the largest trade bloc in the world and is expected to make their economies more efficient, linking their strengths in agriculture, manufacturing, natural resources and technology.

Between them, the two trade deals represent more than 2.8 billion consumers and almost 45 percent of the world’s GDP. 

What is the CPTPP trade agreement?  

The CPTPP is a modified version of the Trans-Pacific Partnership, a trading bloc of 12 countries including the U.S.

Within days of taking office, President Donald Trump pulled the U.S. with the intent of exerting pressure on China for its bad acts including theft of American intellectual property. 

At the time, the coalition of countries negotiating the TPP represented about 40 percent of the world’s gross domestic product (GDP) at the time. 

After the U.S. withdrew, the other 11 TPP countries entered into the newly revised . Now, the trading bloc represents 495 million consumers and 13.5 percent of global GDP.

Seven countries have now signed onto the agreement including Arizona’s two largest trading partners, Mexico and Canada. Other countries in the agreement include Australia, Japan, Singapore, Vietnam and New Zealand. Four countries are in the process of ratification: Brunei Darussalam, Chile, Malaysia, and Peru. 

Tariff-free for member countries 

The CPTPP removes 99 percent of tariffs on goods and services and sets reciprocal trade quotas. These measures will make it more difficult for U.S. businesses, especially farmers, to export to CPTPP members, said concerned business trade groups. U.S. exports now will be more expensive due to tariffs than that of other signatories like Canada, Japan and Singapore.

Trade organizations like the National Pork Producers Council said they would welcome being added to the updated CPTPP. 

“We really believe the U.S. needs to get back into a regional trade deal in that part of the world. It’s the fastest growing economic region in the world,” Nick Giordano, vice president and counsel, global government affairs for the pork council said last month.  “For hog farmers, it’s really important. A country like Vietnam, a CPTPP country, has tons of potential for us.”

With ratification fast approaching, rejoining would help keep American companies remain competitive and boost foreign direct investment in the U.S and Arizona, ���ϳԹ��� President Hamer said.

The other major trade agreement, the RCEP, which was signed last month, is also a concern for industry advocates including the , the world’s largest business organization, which represents about 3 million businesses. 

The signing of the RCEP created a trade bloc that covers about 30 percent of the world’s population and a third of global economic output, extending Beijing’s influence to about 2.3 billion people. The other signatories are Indonesia, Australia, Brunei, Cambodia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.

This pact will prove a strong competitor for America in the growing Asian regions, said Myron Brilliant, executive vice president and head of international affairs for the U.S. ���ϳԹ���.

“The U.S. ���ϳԹ��� welcomes the trade-liberalizing benefits of the newly signed Regional Comprehensive Partnership Agreement but is concerned that the United States is being left behind as economic integration accelerates across the vital Asia-Pacific region,” Brilliant said after the deal was penned last month. “While U.S. exports to the Asia-Pacific market have steadily increased in recent decades, our market share has been shrinking in relative terms.

Asia represents 2.3 billion consumers and counting  

Now more than ever is the time to act to ensure America’s prosperity, Brilliant said. According to the , Asia will represent 66 percent of the global middle-class population by 2030, doubling its share in 20 years.

“U.S. exporters, workers, and farmers need access to these lucrative markets if they are to share in this dramatic growth,” Brilliant said.

China has become the most important trading partner for most of the Asia-Pacific, and its central role in the RCEP will only cement this position, he said. The Trump administration’s move to confront unfair trade practices by China has secured only limited new opportunities for U.S. exporters in other parts of Asia. 

“Given the shortcomings of RCEP, we would not recommend the United States joining,” Brilliant said. “The United States should, however, adopt a more forward-looking, strategic effort to maintain a solid U.S. economic presence in the region. Otherwise, we risk being on the outside looking in as one of the world’s primary engines of growth hums along without us.”

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It’s a wrap. Arizona voters have spoken. Despite some major disappointments, business and industry saw some major wins, too. 

First the new president. President-elect Joe Biden’s victory could prove favorable for Arizona when it comes to trade, immigration and border policies, said Glenn Hamer, president and CEO of the Arizona ���ϳԹ��� of Commerce & Industry, which represents some of the largest employers statewide.

Business and industry now hope to see an end to the punishing trade wars and tariffs of the past four years.  

“I don’t think we’re going to see tariff threats on our allies like Mexico and Canada, and for a state like Arizona that relies heavily on trade, that’s a positive going forward,” Hamer said.

Border issues should improve

He predicts improved relations for trade and cross-border tourism, major financial drivers for Arizona. There’s also hope that restrictive visa policies that have made it difficult to hire workers and attract top students from other countries will improve. 

“COVID-19 precautions must be at the front of the line in moving forward, but we need to get our borders up and running with our friends and allies and North American neighbors,” Hamer said. “Snowbirds from Canada need a haven from their brutal winters. In terms of Mexico, many of our border communities are integrated and border closures have been devastating.”

Keeping new tariff-free trade pact secure   

Hamer is also confident that the new administration will keep the new United States- Mexico-Canada Agreement (USMCA) secure. The is bringing cross border commerce into the modern age with new provisions that include guidelines and protection for e-commerce and intellectual property that will benefit Arizona. 

“I’m very bullish that the next administration will expand on this tremendous agreement and further cement our trade ties,” he said.

Tax and regulatory agenda cause for concern

Hamer’s organization was a vocal supporter of the 2017 Tax Cuts and Jobs Act, which he argues was essential to the country’s pre-pandemic economic expansion.

“We won’t support a rollback of the tax reductions that unlocked one of the most vibrant economies the country’s ever known,” Hamer said. “We’re counting on job creators to help us recover from the current downturn. Saddling them with higher taxes and more regulatory red tape won’t grow the economy.”

Hamer says the outcome of two U.S. Senate runoff races in Georgia in January will be pivotal.

“These races will determine not only which party controls the Senate, but also the extent to which policies that help create jobs will either be retained or rejected,” he said.

A much needed healing message 

Biden hit all the right chords in his victory , said Hamer, who immediately sent out a tweet congratulating the president-elect: 

“It was uplifting and unifying. We are a good people and the greatest country in the history of the world. We are the UNITED STATES of America. It’s time to heal,” Hamer wrote.

Voters retain pro-business, pro-tech, pro-education stewards

At both the national and state level, Arizona voters retained a majority of candidates endorsed by business and trade groups who have worked to build the state’s economy and future.  

At the state Legislature, the GOP held onto majority control. While the chamber endorses candidates from both parties, keeping the provides needed certainty right now, said Garrick Taylor, executive vice president for the ���ϳԹ���. 

Under the state’s leadership, Arizona has watched its economic strength grow exponentially, and it’s experiencing a faster recovery from the pandemic than many other states.

“We’re less concerned with partisan affiliation than we are with making sure the Legislature is committed to strengthening the state’s competitiveness,” Taylor said. “Ensuring that there is a strong majority of pro-jobs, pro-growth legislators is more essential than ever.”

Proven record for moving mountains

Among those re-elected to their respective state houses are dozens of lawmakers who have successfully led Arizona to increase teacher salaries and funding for education to the tune of $1 billion more per year, promote policies to attract a wide range of industries and high paying jobs, and take on a major battle with Mother Nature. 

Last year, Senate President Karen Fann, House Speaker Rusty Bowers and other legislators helped smooth a sometimes contentious process to update the seven-state to protect one of Arizona’s most important water resources, the Colorado River.  

A new U.S. senator

One person who was essential in moving the historic water pact forward was Arizona’s U.S. Senator Martha McSally, who lost her bid to retain her Senate seat against  astronaut and fellow military pilot Capt. Mark Kelly (D).  

McSally, lauded as one of the hardest working public servants in Congress, received strong support from business groups including chambers of commerce, trade associations and small business groups. Earlier this year, McSally received the U.S. ���ϳԹ���’s Abraham Lincoln Leadership for America for her record of bipartisan pro-job, pro-free enterprise work. 

Arizona business leaders are now eager to forge a similar relationship with Senator-elect Kelly.  

“Arizona’s job creators congratulate Capt. Mark Kelly on becoming the state’s next U.S. senator. We look forward to working with him on policies that will strengthen the country and state’s economies,” Hamer said. “Many Arizona businesses are struggling during this pandemic-induced downturn, so there is much work to be done. Sen.-elect Kelly can count on us as willing partners.”

Two serious blows to small business, industry

Two state ballot propositions that were widely opposed by business and trade groups statewide also received voter approval. Both were heavily funded by out-of-state groups.

Most daunting was the narrow passage of Proposition 208, the “Invest in Ed” measure. The new law imposes a high personal income tax on the state’s top earning individuals to fund education. Forgotten in the frenzy to help educators, voters did not realize it would impact tens of thousands of small businesses as well.

“This is a job-killing tax that threatens to destroy Arizona’s reputation as a pro-business, pro-job creation state,” Hamer said. 

The could stifle Arizona’s ability to compete with other states. Neighboring states such as Nevada, New Mexico and Utah have lower or zero income tax rates. Other states are rejecting similar measures. Colorado voters elected to lower that state’s income tax.

Passage of Proposition 207 was another blow. The new law makes recreational marijuana legal in Arizona. Business groups fought its passage for a , including a fear of more workplace injuries and accidents and less productivity on the job. 

Moving forward 

Despite some major disappointments, voters resoundingly cast their ballots for dozens of public servants who have made Arizona a business-friendly state. 

“Arizona is now counting on their leadership to develop the policies necessary to emerge from the pandemic just as we entered it—with one of the nation’s strongest economies,” Hamer said. 

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Glenn Hamer, the president of the Arizona ���ϳԹ��� of Commerce and Industry is a loud, vocal opponent of Proposition 208, the Invest in Education ballot initiative. 

He’s not alone. More than 55 major business organizations have joined him. From the Arizona Farm Bureau and Arizona Trucking Association to the Arizona Manufacturers Council and the state chapter of the National Federation for Independent Business.

Another 50-plus elected officials have come out publicly against the initiative. Governor Doug Ducey, Arizona State Senate President Karen Fann, Speaker of the House Rusty Bowers, Yuma Mayor Doug Nicholls, and Goodyear Mayor Georgia Lord, to name a few. 

“We’re a ‘hell, no’ for this job killing initiative,” said Hamer. “It threatens to destroy Arizona’s reputation as a pro-business, pro-job creation state.

“This proposition would shatter that by making us the ninth highest small business tax state in the United States of America.”

Hitting the virtual “pavement”  

Hamer, whose organization represents about 4,500 employers statewide, has been pounding the virtual “pavement” for several months to get out their message — and the facts — to the public about why this is so harmful.  

Prop. 208 targets top earners in the state and is intended to fund education. If passed, the marginal income tax rate would almost double for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent.   

But Hamer said tens of thousands of small businesses would be affected as well. That’s why so many groups are opposing it. 

Q and A: Glenn Hamer, president and CEO, Arizona ���ϳԹ��� of Commerce   

What does an education funding initiative have to do with small business?

This would be the largest tax increase in Arizona history. Fifty percent of those impacted by this massive tax hike will be small businesses. This tax would put Arizona in the top-10 list of states with the highest small business tax — up there with California, New York and New Jersey.  

And by the way, these small businesses employ 58 percent of Arizonans that work in the private sector. They are small companies, sole proprietors, LLCs and others who file their income taxes as “pass through” entities under the individual tax code. They do not file under the corporate tax code.  

This proposition’s ultimate goal is to generate $1 billion for education. That means a quarter to a half-a-billion dollars will be carried by a lot of these small businesses and a lot of workers who are going to lose their jobs. 

And the last time I looked, we were still in a pandemic. We know that nationally, 1 out of 7 businesses are gone. Gone for good. And we know many more are teetering on the brink.

At this critical moment, pro-growth policies are what will help businesses recover and get the unemployed back to work. At the same time, we need the small business employers that are doing well to continue growing. We need them to keep employees on the payroll. We don’t want to do anything — anything — to make their job more difficult right now.

What about big corporations? Will they be subject to the tax?

No. It doesn’t affect the Fortune 500. So they collectively will not pay a penny of this. 

It’s an important distinction. Small businesses pay their taxes on the individual portion of the tax code. Proposition 208 raises the top rate by 77.7 percent, which means small businesses will pay a top rate of 8 percent, much higher than the corporate rate of 4.9 percent. We would be the only state in the country to basically double the tax on small businesses, and at a time when so many are struggling. 

What are economists’ projections if Prop. 208 succeeds? 

Numerous economists and commentators have pointed out that high-tax states tend to underperform economically, sometimes dramatically so. An analysis of Proposition 208 by economists Dr. Art Laffer, Stephen Moore and Erwin Antoni compared the economic health of seven states with no income tax against the nine states with the highest income tax rates. Those seven states outperform the high tax states when it comes to population growth, employment growth, personal income growth and GDP.  

In our own neighborhood, we’d stick out like a sore thumb. Our neighbors Utah, Colorado and New Mexico all have top income tax rates under 5 percent but our current 4.5 percent rate is the lowest. Nevada doesn’t have a state income tax. If Proposition 208 passes we’d rocket up to a top rate of 8 percent.

You and other organizations have stated the high tax initiative would also affect jobs. How many jobs are at risk? 

As far as jobs, there has been debate about how many it would impact. The question is, will it be tens of thousands of jobs or hundreds of thousands of jobs? We’re already down 125,000 jobs from the pandemic. 

If 208 passes, the estimates range from 10,000 to 230,000 jobs will be lost over the next decade. Whatever the number, why take a risk in an economy that has been performing well and, because of that, allowed us to increase investments in our K-12 education system? 

Teacher salaries are a concern for many Arizonans. Won’t this provide higher salaries for teachers?

There is no guarantee of how much will actually go to teachers. There’s little to no accountability for spending in the initiative language. For instance, it mentions raises for “educators.” That encompasses workers in the cafeteria and bus drivers. These are honorable jobs but there is nothing to show that giving bus drivers a raise will improve student performance in the classroom. 

What is your response to criticism that the business community has failed to support education funding?

It’s a phony baloney sandwich. Business groups have long supported funding initiatives to increase education funding and improve academic outcomes. We strongly supported Governor Ducey’s 20 percent by 2020 plan for teacher raises. And the fact is we’re investing a billion extra dollars into our K-12 system and we’ve been able to do that because of our healthy economy. 

We support more dollars for teachers, but we’re not going to support something that’s going to cause great pain to the economy during a pandemic.

To read testimonials from other business and elected leaders who oppose the measure, go to: .

Here are major business groups in Arizona calling for a “no” vote:

National Federation for Independent Business 

Associated General Contractors Arizona Chapter

Arizona Cattle Feeders Association

Yavapai County Contractors Association

Arizona Automotive Wholesalers Association

Arizona Automobile Dealers Association

Arizona Bankers Association

Arizona Lodging and Tourism Association

Wine and Spirits Wholesalers Association of Arizona

Beer and Wine Distributors of Arizona

Commercial Real-estate Executives for Economic Development 

Free Enterprise Club

Goldwater Institute

Greater Phoenix Leadership 

Americans for Prosperity

Arizona Association of REALTORS

Arizona Builders Alliance

Arizona Cattle Growers Association

Arizona ���ϳԹ��� of Commerce

Arizona Farm Bureau

Arizona Farm and Ranch Group

Arizona Manufacturers Council

Arizona Rock Products Association

Arizona Tax Research Association

Arizona Trucking Association

Homebuilders Association of Central Arizona

Arizona Multihousing Association

InVision

Arizona Cotton Growers Association

NAIOP | Commercial Real Estate Development Association

Prosper

Southern Arizona Home Builders Association

Southern Arizona Leadership Council

United Dairymen of Arizona

To see a complete list of business groups, elected officials and others who oppose the initiative,  go to: .

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A few final thoughts on Proposition 208 with Election Day just a few days away:

The wrong top 10

If Proposition 208 passes, the state will join a top-10 list on which no state wants to appear.

We’ll end up on the list of states with the highest income tax rates nationwide. Our contemporaries will include the likes of California, New York and New Jersey.

As numerous economists and commentators have pointed out, high-tax states tend to underperform economically, sometimes dramatically so.

A recent by economists Dr. Art Laffer, Stephen Moore and Erwin Antoni compared the economic health of seven states with no income tax against the nine states with the highest income tax rates:

Over the past decade, these seven states have outperformed the nine states with the highest marginal income tax rates, as well as the nation as a whole, in population growth, employment growth, personal income growth and GSP growth. If passed, Arizona would replace Delaware as the ninth highest income tax rate state in America.

In other words, it would join the category of the loser states, not the gaining states.

The proponents of Proposition 208 are attempting to turn a half-century of economic history on its head.

Neighborhood leaders and laggards

The move to the top-10-highest list would make Arizona economically uncompetitive regionally and nationally.

It’s in our own neighborhood where we’d stick out like a sore thumb. Our neighbors Utah, Colorado and New Mexico all have top income tax rates under 5%, but our current 4.5% rate is the lowest. Nevada doesn’t have a state income tax. If Proposition 208 passes we’d rocket up to a top rate of 8%.

Arizona has been in the pole position to attract jobs fleeing California, a state with a top income tax of more than 13%.

As Laffer, Moore and Antoni write, “According to the IRS, since the 1992 tax year (conveniently in the midst of Arizona’s tax cutting spree), Arizona has gained over 201,000 tax returns and almost $12 billion in adjusted gross income (AGI) from California alone.”

If we erase our competitive advantage, it will be far too easy for job creators to pass over Arizona for another friendlier locale.

We’ve got the best house on the block right now. Let’s not trash the place with the largest tax increase in Arizona history.

An accelerant, or sand in the gears?

Arizona’s economy is in the pandemic than most states in the country. Arizona’s labor force is , but we’re still down about 125,000 jobs.

All of our energy should be on ensuring our policies are properly calibrated to win back every single one of those jobs. Proposition 208 does exactly the opposite.

I had the chance recently to with the American Enterprise Institute’s Dr. Michael Strain, one of the most thoughtful minds in fiscal policy today, who discussed how states like Arizona should be approaching their economic policy during this pandemic-induced downturn.

“If you are a state government, if you are the federal government, now is the time to be doing everything you can to support existing businesses, to encourage new businesses to start, to support consumer spending,” Dr. Strain said. “State governments should be doing everything they can do to avoid countercyclical policies, to avoid raising taxes and making it harder for businesses at a time when the economy is weak.”

Proposition 208 ignores that prescription by taking the capital that supports private enterprise out of the private sector, which only prolongs our recovery and exacerbates the struggles of so many small businesses.

No reforms, no results

Also joining my conversation with Dr. Strain was Dr. Rick Hess, AEI’s director of education policy studies. He’s an all-star in the K-12 education reform movement. Count him as a skeptic that Proposition 208, which doesn’t call for any improvement in academic outcomes or educational attainment, will result in a better education for Arizona’s K-12 students. The record of states that spend more on education and simply hope for the best isn’t a good one, he says.

“Can more money help? Of course it can,” Dr. Hess said. “Would I be confident that a big increase in state spending was going to make a big difference for kids with no other attention to reform or improvement? I’d be hugely skeptical.”

Dr. Hess also doesn’t buy the argument proffered by the proponents that Proposition 208 will help solve the teacher shortage.

“That suggests that the opportunity here is part of the initiative would be creating new pathways in the teaching profession, where folks work a 12-month year, are paid like 12-month professionals, rather than simply putting a lot of resources into districts and hoping they get spent,” Hess said.

In case you were wondering, no such new thinking on attracting new entrants to the teaching profession is included in Proposition 208.

“If you’re talking about a package of reforms, thinking differently about teacher retirement benefits and health care, you’re talking about staffing differently, you’re talking about holding schools responsible for serving kids well, then I am wide open to the argument that we ought to be increasing investment in schools,” Hess said. “But the idea that we ought to just be throwing a lot of dollars and saying, ‘Boy, we hope these get spent differently than the money that’s gone before,’ I tend to be real unenthusiastic about that approach.”

Like everything else about Proposition 208, there is no new thinking, there are no new reforms, and there is no increased accountability for outcomes.

Taxpayers, teachers and students all deserve more than Proposition 208’s empty promises. It’s terrible policy with even worse timing.

Glenn Hamer is president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry.��

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We know Proposition 208 will cost Arizona jobs. The question is simply how many.

A  by the Goldwater Institute says under the most conservative scenario job losses will reach a minimum of 124,000 over the course of a decade.

An  by national economists Steve Moore and Dr. Art Laffer is even more pessimistic,finding that an estimated 200,000 jobs would be eliminated over 10 years.

The dean of Arizona’s delegation of economic soothsayers, Elliott Pollack,  the “new tax rate would put the state at a significant competitive disadvantage.”

Even the left-of-center Grand Canyon Institute  the job losses at 10,000.

Left, right, or center, the consensus is that Proposition 208 will lose jobs.

It could be your job.

Proposition 208 raises the state’s top individual income tax rate by nearly double. It doesn’t touch the corporate tax rate.

It’s an important distinction. Small businesses pay their taxes on the individual portion of the tax code. Proposition 208 raises the top rate by 77.7%, which means small businesses will pay a top rate of 8%—much higher than the corporate rate of 4.9%.

That’s not fair, and it’s not smart.

Small businesses’ contribution to the Arizona economy is significant and it’s a sector that will be essential to the state’s post-pandemic economic recovery. Fifty-eight percent of Arizonans employed in the private sector work for an employer who pays their taxes via the individual income tax. They get absolutely walloped by Proposition 208. Their ability to keep and grow jobs is put in doubt. It could be your job that’s at risk.

We’re in the middle of a pandemic that has done tremendous damage to the Arizona and national economies. Arizona has clawed back a little more than half of the more than 290,000 jobs it’s lost during the pandemic, but we’re still down nearly 140,000 overall. Do we really want to risk even more damage to the economy? Proposition 208 makes the economic recovery more difficult.

Proposition 208 is not a mainstream proposal. It was not crafted as part of a dialogue between lawmakers, the education community, and job creators. Proposition 208 is extreme. Bernie Sanders has endorsed it. That’s an endorsement that speaks volumes. No one will mistake Bernie Sanders as an advocate for job creators and small businesses. He certainly doesn’t know Arizona.

In fact, nothing about this proposition is Arizona-grown. This is a science experiment gone bad cooked up by out-of-state activist groups.

The proponents’ coalition is paper thin. A handful of the usual suspects who never met a tax increase they didn’t like.

Meanwhile, the opposition to Proposition 208 is broad and deep. , urban and rural, representing industries small and large, from real estate to agriculture to tourism and everything in between opposes Proposition 208. Small business, the sector of our economy targeted by the initiative, is solidly against the proposition’s passage. The Arizona Small Business Association, the National Federation of Independent Business, and local chambers of commerce across the state are some of the measure’s most vocal opponents. Even national powerhouse the U.S. ���ϳԹ��� of Commerce  Proposition 208.

Vote no on Proposition 208. Arizona can do better than to put its economy and thousands of jobs—maybe your job—at risk.

Glenn Hamer is president and CEO of the Arizona ���ϳԹ��� of Commerce and Industry. 

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