Governor Doug Ducey鈥檚 seventh State of the State address was delivered under the most difficult circumstances the state and nation have faced during his tenure as governor.

The January 6 invasion of the United States Capitol, something that hasn鈥檛 happened since 1814 when the U.S. was at war with Britain, shocked all Americans.

The country is in the grips of a pandemic that has spared no state its wrath, including Arizona. More than 10,000 Arizonans have lost their lives to this terrible disease.

The task before the governor was to convey a message that all Arizonans, regardless of political affiliation, age, or zip code could unite around. He delivered. The governor used his speech to present a thoughtful, soberminded policy response to the pandemic that has affected every facet of life in Arizona.

Vaccines

Job 1 is to ensure the vaccines get into the arms of as many Arizonans as quickly as possible. The state is rolling out the vaccine to sites urban and rural, including a massive 24/7 site at State Farm Stadium in Glendale. Thanks to the healthcare professionals whose work over the past year has been nothing short of heroic, as many as 6,000 Arizonans each day will get a jab in the arm at that location alone (including my mom, who just got her first dose).

Liability protections

The governor and legislative leaders are rightly focused on restoring Arizona鈥檚 health. But there are some, unfortunately, who would choose to use this period as a chance to make a quick buck.

The 小红帽直播app agrees strongly with Gov. Ducey that this statewide emergency shouldn鈥檛 be leveraged by trial lawyers to file frivolous Covid exposure lawsuits. Employers large and small, cities and town, schools and universities, hospitals and healthcare providers, and nonprofits that are responsibly adhering to all applicable public health protocols should be lauded, not punished. We鈥檒l be leading the coalition to ensure a smartly tailored liability protection bill gets to the governor鈥檚 desk, just as other states have done with bipartisan support.

Economic recovery

Not only is the governor focused on restoring Arizona鈥檚 health, but he also wants to ensure Arizona bounces back strongly from the pandemic-induced economic downturn.

We鈥檙e in better shape than much of the country, but there is still work to do. Our important hospitality sector, for example, is still struggling. Small businesses have been particularly hard hit. Not only are they grappling with the fallout of the pandemic, but many of them could be hit with one of the highest small business taxes in the country due to the narrow passage of Proposition 208 in November.

The new tax is facing a legal challenge due to its apparent violation of the revenue expenditure limit in the state constitution, something the nonpartisan Legislative Council identified before petition signatures were gathered. If the tax stands, though, it will only reinforce the need to 鈥渢hink big鈥� on tax reform this year, as the governor said.

Just as the governor and the Legislature have been able to count on the Arizona 小红帽直播app to lead the business community in previous efforts to enhance Arizona鈥檚 competitiveness, we鈥檙e ready to roll up our sleeves on tax reform in 2021.

Education

The pandemic has also dramatically affected Arizona鈥檚 school-aged kids. From Kindergarten to higher education, too many students haven鈥檛 been inside a classroom since last March.

Some families have been able to adapt with online learning or have pivoted to charter schools, private schools, homeschool pods, or have taken advantage of other options on the state鈥檚 school choice menu. For many families, however, the pandemic鈥檚 effect on their child鈥檚 education has meant nothing but frustration and worry.

The governor wants to help, and so do we.

In 2021, we鈥檙e ready to partner with Gov. Ducey and the Legislature to bridge the digital divide exacerbated by the pandemic, as well as ensure there are resources to support kids who鈥檝e fallen behind academically. We look forward to building on our record of a relentless pursuit of increased funding for education as evidenced by our support for initiatives like the 20×2020 teacher pay raise plan, Proposition 123鈥檚 infusion of $3.5 billion from the state Land Trust into the K-12 system, the Results Based Funding plan to reward schools producing outstanding results, and more.

As a result of our efforts and the hard work of Gov. Ducey and the state Legislature, Arizona is now spending more on K-12 education on a per-pupil basis from all sources than at any time in the state鈥檚 history.

Like Gov. Ducey, what we cannot support, however, is an erosion of school choices. Due to the educational disruptions wrought by the pandemic, many parents are taking advantage of the choices Arizona affords for the very first time. These options have proven a lifesaver for some families. We should increase Arizona鈥檚 choices, not roll them back. For example, the governor has identified transportation an area ripe to help increase choice.

Similarly, we will continue to champion accountability for educational dollars. Employers have demonstrated a willingness and desire to back increased funding for education, but they expect results and wise stewardship.

The governor and Legislature begin their work in 2021 amid significant challenges. But thanks to the deployment of lifesaving vaccines and with more in the pipeline, each day is a little bit brighter. No matter what happens this legislative session from a policymaking perspective, let鈥檚 heed Gov. Ducey鈥檚 counsel to approach this year with a spirit of unity and compassion.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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At the end of each year, Arizona 小红帽直播app 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鈥檚 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鈥檚 fair to say that 2020 has been a tough year. We鈥檝e lost more than one out of every one thousand Americans to the virus, we鈥檙e still down more than 10 million jobs and there鈥檚 continued social unease. 

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

The public health heroes

Let鈥檚 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鈥檚 response. If you want the definition of an impossible and thankless job, it鈥檚 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鈥檛 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鈥檙e 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鈥檚 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鈥檝e 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鈥nd 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鈥檚 media outlets have been essential partners in getting information out to the public throughout the pandemic.

Day in and day out, KTAR鈥檚 Jim Cross has been a go-to source for useful news about the pandemic鈥檚 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鈥檒l let him decide which is the more flattering honor. 

ABC 15鈥檚 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鈥檙e living through the seriousness it deserves. He鈥檚 also relied on his years of experience as a congressional aide, campaign hand, and Secretary of State鈥檚 Office staffer to help us understand all there is to know about ballot counting. 

It鈥檚 also worth noting that AzDHS has done yeoman鈥檚 work in providing the public a wealth of information. I鈥檓 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. 小红帽直播app 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鈥檚 history. 

Sandra was charged with leading the Arizona Together fund, the business community鈥檚 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鈥檚 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鈥檚 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鈥檚 work in 2020 wasn鈥檛 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鈥檚 no I in team

I鈥檓 very fortunate to have served under excellent board chairs throughout my tenure at the 小红帽直播app, 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鈥檛 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 小红帽直播app 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鈥檚 a longtime 小红帽直播app 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鈥檚 insight into what makes Arizona鈥檚 manufacturing environment one of the country鈥檚 most competitive. The fact that Arizona now has more manufacturing jobs than construction jobs is in no small part thanks to Dawn鈥檚 contributions over the years. As we turn our attention to the great Arizona economic recovery of 2021, the 小红帽直播app board couldn鈥檛 ask for a better business leader. 

Finally, a Hammer Award to each team member at the 小红帽直播app, 小红帽直播app Foundation and Arizona Manufacturers Council. Our last regular day in the office was in mid-March. They didn鈥檛 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鈥檓 thankful for my colleagues at the 小红帽直播app who made lemonade out of a year full of lemons.

We鈥檙e 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鈥檚 your turn. 2020 has been tough. There鈥檚 potential for 2021 to be the year we vanquish Covid-19 and begin a new and robust expansion. Let鈥檚 make it happen.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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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鈥檒l 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鈥檚 in our own neighborhood where we鈥檇 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鈥檛 have a state income tax. If Proposition 208 passes we鈥檇 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, 鈥淎ccording to the IRS, since the 1992 tax year (conveniently in the midst of Arizona鈥檚 tax cutting spree), Arizona has gained over 201,000 tax returns and almost $12 billion in adjusted gross income (AGI) from California alone.鈥�

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

We鈥檝e got the best house on the block right now. Let鈥檚 not trash the place with the largest tax increase in Arizona history.

An accelerant, or sand in the gears?

Arizona鈥檚 economy is in the pandemic than most states in the country. Arizona鈥檚 labor force is , but we鈥檙e 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鈥檚 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.

鈥淚f 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,鈥� Dr. Strain said. 鈥淪tate 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.鈥�

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鈥檚 director of education policy studies. He鈥檚 an all-star in the K-12 education reform movement. Count him as a skeptic that Proposition 208, which doesn鈥檛 call for any improvement in academic outcomes or educational attainment, will result in a better education for Arizona鈥檚 K-12 students. The record of states that spend more on education and simply hope for the best isn鈥檛 a good one, he says.

鈥淐an more money help? Of course it can,鈥� Dr. Hess said. 鈥淲ould 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鈥檇 be hugely skeptical.鈥�

Dr. Hess also doesn鈥檛 buy the argument proffered by the proponents that Proposition 208 will help solve the teacher shortage.

鈥淭hat 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,鈥� Hess said.

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

鈥淚f you鈥檙e talking about a package of reforms, thinking differently about teacher retirement benefits and health care, you鈥檙e talking about staffing differently, you鈥檙e 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,鈥� Hess said. 鈥淏ut the idea that we ought to just be throwing a lot of dollars and saying, 鈥楤oy, we hope these get spent differently than the money that鈥檚 gone before,鈥� I tend to be real unenthusiastic about that approach.鈥�

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鈥檚 empty promises. It鈥檚 terrible policy with even worse timing.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry.聽

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Proposition 207, the initiative to legalize recreational marijuana, has something for everyone to oppose.

Arizonans who want a qualified workforce for Arizona鈥檚 economy: Proposition 207 will severely limit an employer鈥檚 ability to act against impaired workers and  will increase.

According to the most recent  on marijuana use, 32% of young adults ages 18 to 25 who live in states where recreational marijuana is legal are regular users of the drug. In states where the drug is not legal, the rate of use for that age group is 21%.

Many of Arizona鈥檚 largest employers are required to comply with federal drug testing laws that What will happen to Arizona鈥檚 economy when our employers can no longer find a qualified workforce?

Arizonans who want safe roads: Legal marijuana means more stoned drivers.  impairs the ability to drive safely, slows the driver鈥檚 reaction times and clouds their judgment.

In Washington state, traffic fatalities involving drivers who tested positive for marijuana  since the state legalized marijuana in December 2012. In Colorado, someone died  in 2018 in a traffic fatality involving a driver who tested positive for marijuana. Five years earlier, it was one every 6陆 days.

 legalizing marijuana because of the traffic safety risks. Alarmingly, Proposition 207 weakens Arizona鈥檚 DUI laws by eliminating the current bright line standard of marijuana impairment, making it more difficult to protect ourselves from stoned drivers.

Arizonans who want teens to mature into a bright future: Marijuana use negatively impacts learning, memory and coordination in a young brain, causing academic failure and poor sports performance, according to the . A  published this year in the Journal of the American Medical Association found that recreational marijuana legalization was followed by a 25% increase in adolescent (ages 12 to 17) .

States that legalized recreational marijuana have among the  in the nation. Noting the negative social outcomes for adolescents who use marijuana, the Arizona Chapter of the American Academy of Pediatrics wrote a  in opposition to Proposition 207 for the General Election Publicity Pamphlet. The Arizona Medical Association also strongly  207.

Arizonans who want safe neighborhoods: The measure creates a legal right to use marijuana and its high potency extracts, and to grow up to 12 plants in a two-adult household. Under the cover of similar 鈥渉ome grow鈥� laws,  infiltrated California and  activity rose in Colorado. Your HOA will be powerless to protect your neighborhood. Arizona鈥檚 law enforcement community strongly opposes Proposition 207.

Arizonans who support open markets: The medical marijuana industry is almost single-handedly funding the legalization initiative and has raised more than  to convince you to vote for their sweetheart deal. Why? Because Proposition 207 gives existing medical marijuana companies a virtual monopoly on recreational licenses, allowing them to transition medical marijuana businesses to for-profit commercial operations and sell recreational marijuana from the same storefronts. They also will be able to eliminate medical directors, a requirement of the Arizona Medical Marijuana Act, and ignore any medical marijuana regulation deemed 鈥渦nduly burdensome.鈥�

And all that revenue they promise? It鈥檚 a mirage.

In the six Western states with recreational marijuana,  accounts for less than 1% of state revenues. A revealing study in Colorado found that each dollar brought in by marijuana taxes requires spending  to mitigate the exploding black markets, car crashes, and costs related to health care and high school drop-outs.

Proposition 207 caps the marijuana tax at 16%. Arizona鈥檚 lawmakers will have to figure out how to battle the negative consequences of recreational marijuana with no hope of taxing those who are making millions.  

Ballot measures enjoy unique status under the . They cannot be changed, fixed, or repealed by legislators. Every single word in the initiative鈥檚  becomes law if it passes. Proposition 207 permanently locks Arizona into this social experiment at the expense of our kids, our roads, and our economy. The industry gets rich while Arizonans suffer the consequences.

There are plenty of reasons to oppose Proposition 207. The Arizona 小红帽直播app of Commerce & Industry urges you to vote no. 

Glenn Hamer is president and CEO of the Arizona 小红帽直播app 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鈥檚 delegation of economic soothsayers, Elliott Pollack,  the 鈥渘ew tax rate would put the state at a significant competitive disadvantage.鈥�

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鈥檚 top individual income tax rate by nearly double. It doesn鈥檛 touch the corporate tax rate.

It鈥檚 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%鈥攎uch higher than the corporate rate of 4.9%.

That鈥檚 not fair, and it鈥檚 not smart.

Small businesses鈥� contribution to the Arizona economy is significant and it鈥檚 a sector that will be essential to the state鈥檚 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鈥檚 at risk.

We鈥檙e 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鈥檚 lost during the pandemic, but we鈥檙e 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鈥檚 an endorsement that speaks volumes. No one will mistake Bernie Sanders as an advocate for job creators and small businesses. He certainly doesn鈥檛 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鈥� coalition is paper thin. A handful of the usual suspects who never met a tax increase they didn鈥檛 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鈥檚 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鈥檚 most vocal opponents. Even national powerhouse the U.S. 小红帽直播app of Commerce  Proposition 208.

Vote no on Proposition 208. Arizona can do better than to put its economy and thousands of jobs鈥攎aybe your job鈥攁t risk.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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Arizona, like the nation as a whole, is experiencing an uneven recovery from the initial economic impacts of the pandemic. What that means is that some sectors of the economy have rebounded sharply, while others remain in freefall.

At this critical moment, pro-growth policies can help businesses recover and help get the unemployed back to work, but bad policy risks further decimating businesses and jobs. Arizona鈥檚 Proposition 208 is perhaps the most misguided policy on the ballot鈥攊n any state鈥攖his November.  

Small businesses are a critical source of jobs and a vital part of our economic ecosystem, serving as both suppliers and customers to larger organizations. In Arizona, small businesses employ  of Arizonans in the private sector. In certain sectors, small businesses have an even larger footprint. For example, small firms employ 82 percent of all Arizonans in the construction industry and 62 percent in real estate. They also employ 56 percent of those in food services and accommodation and over 50 percent in professional and business services.  

Some of those , particularly those that rely on customers gathering in-person, have yet to rebound from the pandemic-induced recession. One in five jobs in the accommodation and food services sector that existed in February, for example, are gone today. Moreover, nearly 30,000 professional and business services jobs have disappeared. For Arizona to recover, these small businesses must recover. 

At the same time, we need the small business employers that are doing well to continue growing. Earlier this year, Arizona was  fifth in the U.S. for small business employment growth. It is easy to see why when you consider that sectors like construction increased their employment by nearly 40 percent over the last five years.  

But Arizona鈥檚 pro-business environment, and the ability of these small businesses to recover and continue to grow, would be fundamentally threatened if Proposition 208 is passed.   

Proposition 208 would increase tax rates on small business that pay taxes through the personal income tax by an astonishing 78 percent. Proponents  that this will generate nearly $1 billion a year in new taxes to fund schools. But that money has to come from somewhere, and it is most likely going to mean less business investment and fewer new jobs. One conservative  places the job loss at 124,000. And let鈥檚 not forget, fewer Arizonans working means fewer paying normal income and sales taxes,  the state and local governments an estimated nearly $2.5 billion over the next decade. 

Even these stark estimates may not tell the full story. Over the past decade, Arizona鈥檚 strong economy and quality of life has  more than 2 million Americans who moved so that they could call Arizona home. Many came from states that punished small business owners with high tax rates. If Proposition 208 passes, Arizona will move from being a low-tax state to having one of the top-ten-highest tax rates in the nation, alongside the likes of California and New York. Passing Proposition 208 would be the equivalent of rolling up the proverbial welcome mat and closing the door on small business owners.

Proponents of Proposition 208 claim that these tax increases are necessary to ensure a quality education for Arizona students. But that is not true either. Since 2015, Arizona has invested an additional  in K-12 education. Teachers鈥� salaries have increased by an .  

Since 2000, Arizona has made considerable progress in  the number of students who are at or above proficiency in math and reading. There is more work to be done, but it will take smart targeted investments that help improve our school system and our economy.  

Proposition 208 isn鈥檛 smart or targeted, it will hurt Arizona鈥檚 economy and cost the state jobs when we need new job creation the most. It deserves to be defeated.  

Suzanne P. Clark is the president of the U.S. 小红帽直播app of Commerce. Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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A batter in baseball going 0 for 3 at the plate is the equivalent of a rough day at the office. When a political campaign goes 0 for 3, it鈥檚 the equivalent of getting sent down to the minors. 

Based on its three TV ads, the pro-Proposition 208 campaign should start packing its bags. 

If passed, Proposition 208 would take the state鈥檚 top individual income tax rate from 4.5% to 8%, a 77.7% increase. 

That鈥檚 not some obscure aspect of the initiative buried deep in the text; it鈥檚 the initiative鈥檚 central provision.  

You wouldn鈥檛 know that, though, by watching the proponents鈥� ads. After several weeks of ads with Hollywood-level production values, not once has the pro-208 campaign disclosed to Arizonans that the initiative is asking voters to approve the biggest permanent tax increase in the state鈥檚 history.  

The ads also have yet to mention who the tax increase impacts. It鈥檚 not just a handful of wealthy tax filers, but rather the small businesses that power the Arizona economy and that will prove indispensable in Arizona鈥檚 post-pandemic economic recovery. After all, small businesses pay their taxes on the individual portion of the tax code. If Proposition 208 passes, their top tax rate will be even higher than Fortune 500 companies.  

Research papers from the Goldwater Institute and the Arizona Tax Research Association have zeroed in on the extent to which Arizona small businesses get walloped by Proposition 208鈥檚 tax increase.  

鈥淎n analysis of IRS data鈥攕upplemented by additional modeling and adjustments to identify only those Arizona taxpayers directly affected by the rate increase鈥� reveals an estimated 90,000 Arizona tax filers who will be affected. Of these, more than 50% would be small business owners,鈥�  by Goldwater鈥檚 director of education policy, Matt Beinenburg, and senior fellow Jim Rounds.  

As ATRA鈥檚 Sean McCarthy , those small businesses are job creators. 鈥淔ifty-eight percent of Arizonans in the private sector work for a business that pays its income taxes via the IIT (individual income tax).鈥� 

A higher tax burden for these small businesses means depriving them of working capital (as  by Republic columnist Bob Robb) that they can use to hire new employees and make the investments in things like machinery and equipment that have led to Arizona having one of the country鈥檚 strongest, most dynamic economies and where, pre-pandemic, one of our toughest challenges was finding qualified workers to fill available positions.  

The proponents attempt to argue that the initiative delivers when it comes to accountability, but here again they swing and miss. Proposition 208鈥檚 definitions are so expansive as to who鈥檚 eligible for funding that there鈥檚 no guarantee new dollars will reach teachers. Never mind that Proposition 208 depends on the most volatile segment of state tax revenues. No district would base its budgets or teacher pay contracts on the slice of the tax pie that experiences the wildest fluctuations. As ATRA鈥檚 McCarthy details, the first year of the great recession saw revenues in these brackets plunge more than 30% due to cratering business profits. If school districts are banking on these revenues, then they鈥檙e in for a wild鈥攁nd disappointing鈥攔ide.   

Proposition 208鈥檚 ad makers have a difficult task on their hands. They鈥檙e attempting to sell a huge permanent tax increase on small businesses that falls far short of delivering for teachers, and they鈥檙e attempting to do so in the middle of a pandemic. If their first three spots are any indication, we can expect more glitzy productions between now and Election Day, but very little straight talk.  

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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Let鈥檚 stipulate that no one is going to confuse California鈥檚 progressive Democratic governor, Gavin Newsom, with more conservative governors like Arizona鈥檚 Doug Ducey. But even Newsom understands the danger that a dramatic income tax increase can mean for a state鈥檚 competitiveness.

In announcing his support of a ballot proposition to create a 鈥渟plit roll鈥� property tax system that will treat residential and commercial properties differently for tax purposes (itself a bad idea), Newsom also said he will an effort to raise the top state income tax rate and impose a wealth tax. 

What鈥檚 happening in California is instructive to the debate over Arizona鈥檚 Proposition 208, which would catapult Arizona鈥檚 top income tax rate into the top-10-highest in the nation by raising it 77.7%, from the current 4.5% to 8%.  

鈥淚n a global, mobile economy, now is not the time for the kind of state tax increases on income we saw proposed at the end of this legislative session and I will not sign such proposals into law,鈥� Newsom .

Even Newsom gets it: In the freest country on the planet, individuals and businesses of all sizes can move to more welcoming tax environments when their current jurisdiction becomes overtaxed and overregulated.

At an August , Newsom was cool to higher tax proposals, saying California has to 鈥渃onsider the impacts of those decisions on your ability to retain and attract talent, individuals, companies, and your competitiveness. Everything needs to be considered in that light. And I would encourage those that are making proposals in this space to consider those impacts in relationship to what may or may not be happening in other parts of this nation.鈥�

Granted, California already has the highest income tax rate in the country at 13.3% (on income over $1 million), but the principal that certain taxes are particularly damaging to economic expansion holds.  

When a big income tax increase during the middle of pandemic is too extreme even for Gavin Newsom, that should tell us all we need to know about the wisdom of Proposition 208. 

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry. 

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You鈥檝e likely seen the new television ad from the pro-Proposition 208 campaign. In case you鈥檝e forgotten, Proposition 208 is from 4.5% to 8%–a 77.7% increase.

If you haven鈥檛 been following the back and forth over this initiative, you鈥檙e forgiven if you didn鈥檛 know its central provision amounts to the largest tax increase in Arizona history. The TV ad doesn鈥檛 mention it at all.

Instead, viewers are told that the initiative would restore education funding. Left out of the script is that Proposition 208鈥檚 tax increase on small business would deliver such a shock to state revenues that future education funding would be put at tremendous risk. Also left out is that early childhood, community colleges, and universities are left with peanuts.

Proponents also fail to inform viewers that they are relying on the section of tax code with the greatest volatility, leaving no guarantee for funding from year to year and no way for school districts to budget with any predictability. If voters want to deliver a boost in teachers鈥� contractual pay, they won鈥檛 get it from Proposition 208.

The ad touts Proposition 208鈥檚 accountability requirements, saying that funds would be 鈥渧oter-protected.鈥� That has nothing to do with accountability. It鈥檚 a statement of Arizona鈥檚 existing law that makes it virtually impossible to change a voter-passed initiative. There鈥檚 a reason for this obfuscation. There鈥檚 absolutely no accountability in this initiative. None. Nada. Zip. Zilch.

The ad promises a lot. Political ads often do. What the ad doesn鈥檛 do is answer how it will deliver.

A political ad urging passage of an initiative that proposes the largest income tax increase in state history that doesn鈥檛 mention the tax increase at all? Unlike the script, that says a lot.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry

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As Congress this week returns to Capitol Hill to consider its fourth major pandemic relief and response bill (a fifth bill updated elements contained in a previous bill), I anticipate that there are seven major elements that will be included in some form or fashion.

The Wall Street Journal had an excellent over the weekend that laid out the various issues that the next bill might address. Here鈥檚 my take on the items identified in the story:

Unemployment benefits.

The first aid package contained a massive expansion of unemployment benefits at $600 above a state鈥檚 existing unemployment insurance payment. Lawmakers approved the enhanced benefit knowing that, for many workers, the additional dollars would deliver a temporary income higher than what they were previously earning at their job. It鈥檚 unlikely a similarly generous payout will be repeated.

Still, given that unemployment levels remain high, supplementing regular state unemployment insurance is justified, but it should be at a level that does not exceed a worker鈥檚 pay before a furlough or a layoff. There are some creative bipartisan proposals that deserve consideration to encourage a return to work without pulling the rug out from under struggling households.

Additional stimulus pay.

The original CARES Act provided up to $1,200 per adult and $500 per child in direct cash assistance. Again, given the current high unemployment levels, additional relief makes sense. How much, exactly, and how it is targeted still needs to be settled. 聽

This moment also offers policymakers the chance to consider ways to improve the Earned Income Tax Credit, a refundable tax credit aimed at low- and moderate-income working families. One reform could include automatically issuing the credit to qualifying households without requiring the filing of a tax return. 

Schools reopening.

I strongly disagree with those who believe that schools should be penalized if they鈥檙e not open during a pandemic for legitimate safety reasons. We cannot and should not force teachers, support personnel, or students into a classroom or school environment where they don鈥檛 feel safe.

A carrot approach would be better, delivering funds attached to each student who is attending an in-person educational setting to reflect the increased costs. Funding must be available for face masks, cleaning products, PPE, and the implementation of any other healthcare protocols necessary to improve school safety and hygiene.

Funds should also be available for distance learning, which will be necessary to provide resiliency if schools must close or for students who have underlying health conditions and for whom a return to in-person learning might be delayed.

There should also be funds allocated for all parents and guardians, perhaps subject to income limitations, for expenses related to transportation and connectivity like WiFi or laptops.

In Arizona, it鈥檚 estimated that the cost to provide for a safer in-person learning experience is $485 per child. 

Liability reform.

Liability reform is essential not just for regular businesses attempting to reopen safely and responsibly, but for schools, cities and towns, non-profits as well as healthcare providers. We don鈥檛 want concerns over dubious lawsuits to delay our recovery.

This protection should provide certainty for those acting in good faith to follow applicable state and CDC health guidelines. Ideally, there would be safe harbors in any protection.

Bad actors who are grossly negligent or who engage in willful misconduct should not be protected, and the relief should be temporary and targeted to Covid-19.

State and local aid.

Any additional aid to states and cities should provide maximum flexibility to these jurisdictions as long as funds are used to respond to the economic fallout from Covid-19. In other words, federal tax dollars should not be used for things like pension bailouts or other problems that existed long before the pandemic.

It鈥檚 important to point out that Congress did appropriate $150 billion in March for state and local governments. It would be useful to have a report on how those dollars were spent and any lessons learned that could be applicable to additional aid. It is worth considering additional aid for U.S. border communities whose finances have been devastated by the prolonged closure to most cross-border travel.

Additional business aid.

The Paycheck Protection Program is arguably the most successful business assistance program in the history of the world. Thus far, this small business rescue effort has provided about 5 million forgivable loans representing more than $515 billion.

In Arizona, the numbers are staggering. More than 81,000 small businesses have received these loans worth more than $8.5 billion.

There鈥檚 still about $130 billion left in the program, which after extensions is now set to expire August 8. Congress should extend the program again and more dollars should be added, and all loans already distributed should be completely forgiven if they鈥檙e under $150,000.

For smaller businesses, say those with 100 or fewer employees, or businesses in hard hit sectors like hospitality, a second round of lending should be allowed.

Congress should also expand the Employee Retention Tax Credit, which has bipartisan support. The credit helps employers keep their workers on the payroll while relieving a percentage of employment taxes. The president鈥檚 payroll tax holiday is truly stimulative and, along with the administration鈥檚 deregulatory efforts, could provide the building blocks for a structurally sound recovery. 

With the continued tensions between the U.S. and China and the USMCA now in effect, incentives for vital supply chains for things like medical supplies and semiconductors to return to or expand in the U.S. deserve support.

Dealing with the virus.

Additional aid should be directed to testing and contact tracing, as well as building a robust public health infrastructure. It also makes sense to direct money at boosting the number of Americans who get the flu vaccine this year. A raging influenza season on top of Covid-19 could be devastating.

Dollars should be allocated for small- and medium-sized businesses for costs related to PPE and other protocols to make the workplace safer. Arizona Rep. David Schweikert has a good idea to help businesses offset the costs of providing tests for workers.

A massive PR campaign on wearing masks鈥攖he closest we have to a silver bullet when people are in public鈥攊s needed.

It鈥檚 easy to be a critic, but thus far Congress and the administration have risen to the occasion in supplying aid and direction in previous Covid-19 relief bills. I want to particularly thank our U.S. senators, Kyrsten Sinema and Martha McSally, for working tirelessly and turning their offices into virtual MASH units in assisting their constituents in dealing with this crisis.

Glenn Hamer is president and CEO of the Arizona 小红帽直播app of Commerce and Industry.聽

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