by Corinne Murdock | Mar 26, 2022 | Economy, News
By Corinne Murdock |
A controversial bill to offer up to $150 million in tax credits to filmmakers, SB1708, passed the House Appropriations Committee on a divided vote: 8-5.
The bill reads like a promotional deal for a store: if a company spends up to $10 million, then they get 15 percent in tax credits. If they spend between $10 and $35 million, then they get $17.5 percent. And if they spend over $35 million, then they get 20 percent. Companies could get more: an additional 2.5 percent for total production labor costs associated with Arizonan employees, an additional 2.5 percent of total qualified production costs associated with filming at a qualified production facility in Arizona or primarily on location, and an additional 2.5 percent of total qualified production costs if they filmed in association with a long-term tenant of a qualified production facility.
Arizona Free Enterprise Club Vice President Aimee Yentes told the committee that the $150 million refundable tax credit was not only unwise but likely unconstitutional, directing the committee members to review the Goldwater Institute’s analysis of the bill’s potential gift clause violations. She added that this type of legislation only causes a bidding war between states that ultimately cause its residents to lose out, citing similar legislation adopted in other states and their current struggles. As for the argument that the tax credit would result in more jobs for locals, Yentes asserted that theory fails to prove itself in practice.
“It’s a loser that produces few, shallow, low-payment, temporary jobs,” said Yentes.
Michael Scott, CEO of self-described “faith-based” film company Pure Flix responsible for movies like “Case for Christ” and the “God’s Not Dead” series, said that they spend tens of millions outside of Arizona. Scott promised they would employ many locals if they could bring filmmaking to Arizona.
Rob Gerstner, a longtime cameraman, said that this bill wouldn’t stop film companies from “sub-renting” equipment: local companies lack all the equipment necessary to film a movie, meaning that they would then need to rely on renting equipment from other states to fulfill the film company’s contract. Gerstner said that money would bleed out of Arizona because of logistical problems like that.
State Representative Jake Hoffman (R-Queen Creek) noted that pornography movies don’t qualify for the credit, but asked why works like the controversial Netflix film “Cuties” wouldn’t be scrutinized — something that would oppose certain Arizonan’s values. The bill sponsor, State Senator David Gowan (R-Sierra Vista), said that the bill would inspire the “mass good” and that the bad and good works could compete.
“I don’t know how you control all that aspect, but it certainly allows them to be here and allow them to counter that with our religious movies,” said Gowan. “You can’t control everything that’s out there, but you can certainly control the most evil.”
Hoffman said that political candidates and their campaigns could reap the tax credit reward. Gowan said that those kinds of works would fall under campaign laws, which would. Hoffman said that attorneys informed him of the opposite legal take and advised Gowan to look into that.
State Representative Gail Griffin (R-Hereford) explained that she’s never voted for a refundable tax credit. Hoffman said that he wasn’t confident political campaigns wouldn’t benefit from the bill, and cited concerns that the bill would cause a slippery slope “race to the bottom” for tax credits. State Representative Joanne Osborne (R-Goodyear) cited similar concerns.
“At the end of the day I’m just a small mom and pop business owner; I don’t get a $150 million tax credit,” said Osborne. “This bill does set a precedent, and it’s not one I’m going to support.”
State Representative Lorenzo Sierra (D-Avondale) expressed excitement at the thought of all the film-related programs that may arise from this bill.
Butler argued that this bill was “really scary” from the sheer amount of money being committed from the state legislature, at the potential expense of other investments. She said she wasn’t convinced that the returns would outweigh the funds given, citing that there needed to be more checks and balances like a sunset clause to keep the legislation in check. Yet, Butler voted for the bill.
Chairman Regina Cobb (R-Kingman) said that she felt there were significant advantages and disadvantages presented by the bill, agreeing with Butler that there should be a sunset clause, and voted for the bill.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Mar 24, 2022 | News
By Corinne Murdock |
The House Transportation Committee approved SB1356, legislation to give Maricopa County residents a vote for or against a transportation tax and excise tax plan. The committee passed with bipartisan support, with the exception of three: State Representatives Neal Carter (R-Queen Creek), Kevin Payne (R-Peoria), and Leo Biasucci (R-Lake Havasu City).Two didn’t vote either way: State Representatives Brenda Barton (R-Payson) and David Cook (R-Globe).
Arizona Free Enterprise Club Vice President Aimee Yentes expressed opposition to the bill, noting that 40 percent of the money was allocated for public transit. Yentes explained that the 1985 transportation tax plan was successful because it built freeways, but that over the decades the plan shifted from essential infrastructure like roads and freeways to “transit,” despite a steep, increasing decline in its use. That number sits at half a percent currently.
“As we’ve seen post-COVID, that ridership number has fallen off a cliff. There are actually more people who don’t own a vehicle that take a car to work than actually use public transit. That’s kind of astonishing,” said Yentes.
Yentes also noted that the bill sets aside funding for something already covered by statute: “regional programs.” She said the definition of that term was problematic because it doesn’t distinguish street intersection improvements but, rather, “arterial roads and regional programs.”
“It really is a catch-all that can be used to siphon off local city slush funds for whatever: complete streets, air quality,” said Yentes.
The bill sponsor, State Senator Tyler Pace (R-Mesa) said that the bill’s rejection, either by the legislature or by Maricopa County voters, would necessitate the Arizona legislature to find the funds for transportation projects themselves. Pace insisted that the committee members shouldn’t nitpick at the provisions of the bill because the greater good concerned Arizona’s legacy of quiet, fast roads superior to those of other states.
State Representative Richard Andrade (D-Glendale) compared SB1356 to previous efforts to expand and extend the state’s two major highways: Loop 101 and the I-17. Andrade argued that creating more public transit like light rails would increase their use.
Those in opposition explained that they weren’t confident this bill would actually meet transportation needs. Carter said that he supported infrastructure, but said that the legislation had room for improvement. Carter said his reservations included provisions for expenditures related to air quality, and the expansion beyond a 20-year authorization.
Payne expressed displeasure that legislators impacted by the bill weren’t included in stakeholder meetings. He explained that his constituents were requesting another bus route down Bell Road, for example, and that he couldn’t vote for the bill in good conscience because of that.
Echoing Carter and Payne’s statements in his “no” vote was Biasucci. Biasucci argued that the legislature should utilize its $4 billion in surplus instead of passing the costs on to taxpayers.
“I think this is, really, how it needs to be done: the money should come from the general fund to be spent on major projects, I’m talking billions of dollars’ worth, in my opinion. For me, when we’re sitting on this huge surplus, it’s hard for me to say, ‘Yes, I agree with a tax increase or an extension,’” said Biasucci.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Mar 23, 2022 | News
By Corinne Murdock |
State Representative Jake Hoffman’s (R-Queen Creek) controversial proof of citizenship for voting bill passed the Senate on Wednesday along party lines. HB2492 now heads to the governor for final approval. The legislation requires that individuals provide proof of citizenship when registering to vote in the state, and further requires election officials to confirm with all available government databases that the applicant is an American citizen.
The bill advanced steadily through both the House and the Senate, moving out of Senate committee less than two weeks ago, shortly after it was passed by the entire House a few weeks before that. The legislation didn’t advance without pushback, however. Community activists attempted to stall the bill during its consideration by the Senate Judiciary Committee, forcing a recess with their antics such as shouting down the legislators and shouting, “Shame!” repeatedly after the bill passed.
In a statement to AZ Free News, Arizona Free Enterprise Club President Scot Mussi was hopeful that Governor Doug Ducey would sign the bill. Mussi applauded the legislature for passing a bill that aligned with the state and federal constitution, forecasting that the bill would prevent bad actors from interfering with elections.
Senate Democrats had a different perspective of the bill: they claimed that the legislation would force numerous Arizonans to register to vote again. They also claimed that the bill violated federal election law.
In regard to the constitutionality claim, Arizona Free Enterprise Club Deputy Director Greg Blackie explained during the Senate Judiciary Committee hearing that the 2013 Supreme Court ruling determined that the National Voter Registration Act didn’t stop states from denying an applicant’s registration based on information that proved the applicant’s ineligibility. Under this bill, that would mean proof that an applicant isn’t a citizen.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Terri Jo Neff | Mar 11, 2022 | News
By Terri Jo Neff |
Several Arizona legislators along with the Free Enterprise Club and the Goldwater Institute are celebrating a major court victory for Arizona taxpayers after a Maricopa County Superior Court judge struck down the largest tax hike in state history on Friday.
by Corinne Murdock | Jan 19, 2022 | Education, News
By Corinne Murdock |
Arizona State University (ASU) decided to cancel a prominent conservative program’s first annual fundraiser scheduled for next month, and there are conflicting explanations behind their decision. The event was arranged to honor prominent community leaders Dan and Carleen Brophy; 100 percent of the event proceeds were to go to the program.
Three different reasons for the event’s cancellation were given to different parties involved in the event. The first two related to technicalities: the uptick in COVID-19 cases, and one unnamed faculty member’s failure to follow ASU rules. The third had to do with a more contentious topic: the featured speakers.
ASU’s decision means that the program, Political History and Leadership (PHL), may not obtain funds it anticipated from the event, which was to take place at the Desert Botanical Garden. Each guest would have paid $250 for attendance, and tables of eight would’ve pulled in $2,000. The PHL Program is part of the School of Historical, Philosophical, and Religious Studies.
AZ Free News learned that ASU informed several of the featured speakers that the event was canceled due to the increase in COVID-19 cases.
Scientists hypothesize that COVID-19 likely functions as a seasonal disease. Last year, the case counts for February were nominal after the holiday spike.
AZ Free News also learned that ASU President Michael Crow wasn’t aware of the event or its cancellation, and that ASU would reschedule. However, emails obtained by AZ Free News indicated that the ASU administration was responsible for canceling the event.
ASU spokesman Jerry Gonzalez told AZ Free News a slightly different story. Gonzalez said that a faculty member broke the university’s scheduling protocol. When we asked which protocol was broken, ASU said it didn’t have any more information to provide.
“The event at the Desert Botanical Garden was canceled due to a breach of scheduling protocol by a faculty member in the School of Historical, Philosophical and Religious Studies,” said Gonzalez. “The university welcomes the opportunity for this event to be rescheduled following the required protocols.”
AZ Free News also inquired of the ASU Foundation, which was in charge of receiving the program funds earned from the event and approving any event planning. They didn’t respond to any of our emails.
A third potential reason surrounding the event cancellation had nothing to do with logistics. Some reported that they were informed that the event was canceled due to controversy over the choice of guest speakers: Congressman Andy Biggs (R-AZ-05) and former Utah congressman and Fox News contributor Jason Chaffetz.
In a press release, Arizona Free Enterprise Club President Scot Mussi derided ASU based on the claim that they canceled the fundraiser over Biggs and Chaffetz.
“It is outrageous that Michael Crow and ASU would cancel an ASU Foundation Fundraiser because they oppose the views and philosophy of the featured speakers attending the event. It is becoming clear that woke cancel culture has taken over every office at the University,” said Mussi. “ASU doesn’t have a problem with liberal activists and public officials appearing at the school for various events. It is well known that Democrat politicians, including US Senator Kyrsten Sinema, have in the past or currently work for the University at taxpayer expense. It only becomes a problem when the speaker is a conservative. If Michael Crow is going to surrender to the ‘cancel culture’ mob, then he is no longer fit to be ASU President and should resign.”
Those registered for the PHL event will receive full refunds.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
