It’s Hard to Argue With Results

It’s Hard to Argue With Results

Results, not intentions, are the best measure of performance…

With all of the talk about taxing the rich more, and demands for even more state tax revenue, it is important to highlight how to grow out of a financial hole. Many will remember the devastation that came upon Arizona, like many states, between 2008 and 2013. Many people lost jobs, homes, their retirement net eggs, and even careers. It is nice to see that sound economic policy that is putting more back in the hands of the people, the very same people who are still trying to recover from what has been labeled, The Great Recession.

Mike Maciag (May 8, 2018), writing for the Magazine Governing reports on the latest data and how Arizona is doing.

Federal data released Friday show that the gross domestic product climbed significantly across several states last year.

The preliminary estimates from the Bureau of Economic Analysis indicate all but three states recorded at least slight increases in real GDP between 2016 and 2017. Nationally, GDP rose 2.1 percent last year.

Year-over-year real GDP grew at the fastest rate in the following states:

Arizona

Solid job and population gains pushed up real GDP by 3.2 percent in Arizona last year.

BEA data show broad-based growth for the state, with no single sector standing out. The two largest contributors to the increase were health care and retail trade.

The fast-growing Phoenix region serves as the focal point for the growth. Maricopa County added roughly 74,000 people last year, easily the largest net increase of any U.S. county, according to Census Bureau estimates.

An Arizona State University forecast estimates net job growth of 69,000 this year, up from 63,000 in 2017. To meet the demand for housing in Phoenix, the construction sector is expected to expand significantly, with consensus estimates calling for 6.4 percent job growth for the year.

Read the full story online.

Federal Tax Reform Benefits For Arizona Workers Now Exceed $215 Million Dollars!

Four months have passed since the enactment of federal tax reform, and Arizona workers and taxpayers continue to be rewarded with new raises, bonuses and expanded benefits. As of April 30th, over $215 Million dollars has now been put back into the pockets of Arizona workers and ratepayers as a result of federal tax reform.

Here is a list of Arizona companies that have rewarded employees with additional pay and benefits:

  • American and Southwest Airlines announced $1,000 bonuses for their nearly 15,000 employees in celebration of the GOP tax plan.
  • CEO Bob Parsons handed out $1.3 million in bonuses to his 725 employees at YAM Worlwide.
  • AT&T and Comcast provided $1,000 bonuses to hundreds in their Arizona workforce.
  • Bank of America will be giving $1,000 bonuses to their 10,000 Arizona employees that make up to $150,000 in total compensation.
  • Boeing has committed to $300 million to charitable investments, workforce training and infrastructure improvements benefiting their 3,600 Arizona employees.
  • Nationwide announced $1,000 bonuses and an increase of their 401(k)-matching contribution for their 1,900 Arizona employees.
  • Wells Fargo, with over 15,000 Arizona employees, announced the establishment of a $15 minimum wage, $400 million in charitable donations and $100 million in additional capital investment.
  • Wal-Mart has committed to providing their 35,000 Arizona employees a guaranteed minimum wage of $11/hour and bonuses up to $1,000.
  • APS announced that they intent to slash $119 Million from their utility rates, which would save the average homeowner $56 each year.
  • Verizon will provide 50 shares of restricted stock (valued at $53/share) to their 2,800 Arizona employees, a total value exceeding $7 Million dollars.
  • JP Morgan Chase will be giving a $750 bonus to their 10,000 Arizona employees and raise starting wages from $15 to $18 an hour.
  • Waste Management, Inc. is providing $2,000 bonuses to nearly 2,000 Arizona Employees that do not participate in a sales incentive or bonus plan.
  • Meridian Bank increased their base wage to $15/hour, increased charitable contributions and capital spending and added 20% to existing bonuses.
  • Comerica Bank will provide $1,000 bonuses to their 100+ Arizona non-officer employees and raised their base wage to $15/hour.
  • Home Depot announced bonuses up to $1,000 for its 10,000 Arizona employees
  • Western Alliance provided bonuses, pay raises and an increase in their 401(k)-matching contribution for their 700 Arizona employees.
  • Washington Federal, which has nearly 200 Arizona employees, has committed to 5% merit increases for employees making less than $100k and an substantial increase of training programs for their workers.
  • Starbucks announced pay raises, expanded benefits and company stock (valued at $500 for shop workers, $2,000 for managers) to their 4,000 Arizona employees.
  • FedEx, with 3,700 Arizona employees, will be giving bonuses, pay raises and a voluntary $1.5 Billion contribution to their company pension plan.
  • Honeywell has committed to boosting their 401(k)-match for its 8,000 Arizona employees.
  • U-Haul will be providing bonuses ranging from $500 to $1,200 for their 3,800 employees.
  • Lowe’s has committed to providing their 4,000 Arizona employees bonuses up to $1,000, expanded benefits and maternity leave and $5,000 in adoption assistance.
  • Chipotle is providing bonuses ranging from $250 to $1,000 for their Arizona employees
  • McDonald’s announced a tuition assistance program for their 16,000 Arizona Employees ranging from $2,500 to $3,000.
  • Cox Communications, with over 3,200 Arizona Employees, will be receiving bonuses ranging from $1,000 to $2,000.

In total, over 125,000 Arizona workers are on the receiving end of bonuses, pay raises and other benefits thanks to the business tax cuts. Combined with the individual income tax reductions that will show up on paychecks next month, the direct financial benefit for Arizona taxpayers as a result of tax reform will be over $1 Billion dollars in 2018. (Data compiled by the Free Enterprise Club).

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