The Outlook is good for the Grand Canyon State’s Economy

The Outlook is good for the Grand Canyon State’s Economy

There has never been a better time to be doing business in Arizona than now. Across the state, job creation is flourishing and business is booming. It’s no trick or fluke, as our economy has turned around following the last two years of the economic upswing, Arizona has benefited. This was only made better when Congress passed federal tax cuts.  As a result, employees around the state are seeing the benefits right in their paycheck as a result of recent federal tax cuts.

Arizona is home to almost 540,000 small businesses that employ almost 1 million of our fellow citizens. 135,000 of those are minority-owned small businesses. Reducing their taxes means they can reinvest those savings into their businesses and employees. It allows organizations to buy needed new equipment, hire additional staff, and increase compensation for its current staff. Companies can also expand operations and grow, which is beneficial to all Arizonans. U-Haul (one of those Arizona companies) reports 132 trucks each day arrive in Arizona, which is a key indicator for population growth. At a little over 2 people per truck, that puts Arizona on Track to meet projections of 1.1 Million new residents within 10-years. 

One measure of a healthy economy is to look at how many building cranes are in operation in a city. Not only are there lots of cranes at work, Stafford Crane Group, an Irish firm that builds the monster cranes, moved their headquarters and manufacturing center to Arizona because of demand. Operators are scarce, but that is a sign of economic prosperity.

This isn’t just conjecture; over 500 businesses across the United States have already begun doing this. They are increasing employee pay, adding to 401k contributions, paying bonuses and a wide variety of other avenues to thank employees for their contribution. 

Here in Arizona, Sutter Masonry, an El Mirage-based masonry business, increased hourly wages for its workers and distributed more than $50,000 in bonuses to its more than 100 employees. Small businesses are the only ones giving back to their employees. Lowes Home Improvement is giving its 4,000 employees in Arizona bonuses of up to $1,000. Lowe’s has expanded their benefits package and updated their parental leave policy; they have also begun to offer $5,000 of adoption assistance.

The tax cut bill doesn’t just help companies. It helps the average American out as well. Your paycheck is bigger than it was this time last year because of the Tax Cuts and Jobs Act, the tax bill Congress passed in January. While Democrats called these savings “scraps,” and “crumbs,” many people saw an immediate benefit to the pay raise tax cuts generated. They were able to complete needed home improvement projects, add to their children’s education funds, or even just buying new shoes for their kids for the summer. 

The challenge in Arizona will be to “conform and reform” the Arizona Tax Code to protect the Trump Administration tax cuts. This is an issue because with the increase of personal deductions at the Federal level, and the consequent increase in gross adjusted income after the application of the increased personal exemption, Arizona residents are at risk for experiencing no net change. The Legislature will need to take action soon to align Arizona and Federal tax code (confirm) and to adjust for for the changes to protect the tax cuts (reform). 

Prosperity is a good thing, and Arizonans can breathe a little easier knowing that they have more money going back to their pockets, instead of having it going off to Washington to be spent on waste. Businesses no longer have to see up to 50 percent of their income be taken as taxes; they can get back to what they do best, job creation and revenue generation. The economy is booming in Arizona, and the tax cuts have come at just the right time. The Grand Canyon State’s outlook is great!

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