New Chicanos Por La Causa Women’s Business Center helping entrepreneurs grow during pandemic
A new women’s business center in Phoenix is offering a range of services to help entrepreneurs grow and expand during the pandemic.
The new Chicanos Por La Causa (CLPC) Women’s Business Center (WBC) in Phoenix offers services to anyone who wants to start or grow a business, even those who are just thinking about it. They offer a variety of services including training, technical assistance and access to low interest loans.
It is one of 20 new women’s centers across the U.S just launched by the U.S. Small Business Administration (SBA). In addition, the SBA launched a new free e-learning platform, Ascent, for anyone to use to help advance their company’s profitability.
Most are located in underserved and rural neighborhoods, and they have resources to assist business owners to remain resilient during the pandemic, including Latina and Black business owners who have been disproportionately affected by Covid-19 shutdowns and disruptions.
The new Phoenix WBC in Phoenix is being hosted by Prestamos, a division of the nonprofit CPLC. Prestamos provides a variety of lending programs to help grow small businesses and “impactful” economic development projects.
“This pandemic has disproportionately impacted women through workforce reductions and caregiving responsibilities, and I am thrilled to partner with the SBA to support and empower those women looking for a new path through entrepreneurship,” said Amber Cordoba, director of Business Education and Consulting Services for Prestamos.
Mentoring, training, low interest loans, and much more Arizona now has two WBCs including the YWCA Southern Arizona Women’s Business Center in Tucson. The two Arizona centers are part of a national network of 136 WBCs that offer:
Free e-learning platform for women entrepreneurs
The SBA also launched Ascent, a first-of-its-kind free digital platform geared to help women entrepreneurs grow and expand. Ascent has content such as tips on preparing and recovering from disasters, strategic marketing and business financial strategy development.
The online platform is a joint initiative between the White House, the SBA, the U.S. Department of Labor’s Women’s Bureau and the U.S. Department of the Treasury. Designed to support women entrepreneurs looking to remain resilient in their operations, Ascent is packed with content and resources from each agency and backed by academic research.
Largest expansion of women’s services in 30 yearsThe launch of Ascent and the opening of 20 new business centers this year is the SBA’s largest single expansion of resources specifically tailored for women in more than 30 years.
Women business owners represent an important sector in the nation’s economic framework, according to the SBA. Today, women entrepreneurs own or co-own nearly 13 million businesses, close to half of all companies in the nation. They employ 9.4 million workers, generate $1.9 trillion in revenue and represent all industries.
For More Information
For more information about the Phoenix center, go to: Chicanos Por La Causa Women’s Business Center
For more information about the Tucson center, go to: YWCA Southern Arizona Women’s Business Center
To learn more about SBA’s programs and services for women entrepreneurs, visit online at www.sba.gov/women, and to find other WBC locations and SBA resources, visit www.sba.gov/tools/local-assistance.
A new women’s business center in Phoenix is offering a range of services to help entrepreneurs grow and expand during the pandemic.
The new Chicanos Por La Causa (CLPC) Women’s Business Center (WBC) in Phoenix offers services to anyone who wants to start or grow a business, even those who are just thinking about it. They offer a variety of services including training, technical assistance and access to low interest loans.
It is one of 20 new women’s centers across the U.S just launched by the U.S. Small Business Administration (SBA). In addition, the SBA launched a new free e-learning platform, Ascent, for anyone to use to help advance their company’s profitability.
Most are located in underserved and rural neighborhoods, and they have resources to assist business owners to remain resilient during the pandemic, including Latina and Black business owners who have been disproportionately affected by Covid-19 shutdowns and disruptions.
The new Phoenix WBC in Phoenix is being hosted by Prestamos, a division of the nonprofit CPLC. Prestamos provides a variety of lending programs to help grow small businesses and “impactful” economic development projects.
“This pandemic has disproportionately impacted women through workforce reductions and caregiving responsibilities, and I am thrilled to partner with the SBA to support and empower those women looking for a new path through entrepreneurship,” said Amber Cordoba, director of Business Education and Consulting Services for Prestamos.
Mentoring, training, low interest loans, and much more Arizona now has two WBCs including the YWCA Southern Arizona Women’s Business Center in Tucson. The two Arizona centers are part of a national network of 136 WBCs that offer:
- Individualized coaching
- Workshops
- Microlending
- Networking
- Technical assistance
- Resources
- Financial management
- Operations
- Accounting
- Marketing
- Human resources
- Website and digital strategies
Free e-learning platform for women entrepreneurs
The SBA also launched Ascent, a first-of-its-kind free digital platform geared to help women entrepreneurs grow and expand. Ascent has content such as tips on preparing and recovering from disasters, strategic marketing and business financial strategy development.
The online platform is a joint initiative between the White House, the SBA, the U.S. Department of Labor’s Women’s Bureau and the U.S. Department of the Treasury. Designed to support women entrepreneurs looking to remain resilient in their operations, Ascent is packed with content and resources from each agency and backed by academic research.
Largest expansion of women’s services in 30 yearsThe launch of Ascent and the opening of 20 new business centers this year is the SBA’s largest single expansion of resources specifically tailored for women in more than 30 years.
Women business owners represent an important sector in the nation’s economic framework, according to the SBA. Today, women entrepreneurs own or co-own nearly 13 million businesses, close to half of all companies in the nation. They employ 9.4 million workers, generate $1.9 trillion in revenue and represent all industries.
For More Information
For more information about the Phoenix center, go to: Chicanos Por La Causa Women’s Business Center
For more information about the Tucson center, go to: YWCA Southern Arizona Women’s Business Center
To learn more about SBA’s programs and services for women entrepreneurs, visit online at www.sba.gov/women, and to find other WBC locations and SBA resources, visit www.sba.gov/tools/local-assistance.
Real estate community hears legal and economic implications of Proposition 208
Arizona’s new high income tax from Proposition 208 is bound to discourage new investment, harm thousands of small businesses, and is unconstitutional, two of the state’s leading economic and legal experts told the real estate community last week.
While the tax is intended to provide funding for education, it is flawed in many aspects and will hurt education in the long run if measures aren’t taken to mitigate its impacts, said Jim Rounds, an economist and policy analyst who spoke at a virtual breakfast meeting of the nonprofit Valley Partnership, the voice of the real estate industry in the metro Phoenix region.
“We’re not debating education funding. We’re talking about the best way to fund education,” Rounds of Rounds Consulting in Tempe told a group of more than 175 attendees. “We want to make sure the gains are bigger than the economic losses.”
Rounds was joined by constitutional attorney Jon Riches of the Goldwater Institute, which is challenging the tax in Maricopa County Superior Court. Riches detailed why the measure is unconstitutional on several fronts.
Businesses seeking solutions
Cheryl Lombard, president and CEO of Valley Partnership, said the organization invited the two experts so members could get more information about the controversial measure.
Lombard said her organization supports a “well educated workforce” as part of its strategic plan and is joining with other business organizations to determine what is the best path moving forward. If Prop. 208 is not going to deliver as promised or is invalidated by the courts, the real estate community wants to know that there is a path forward that businesses can support.
“As a business community, we need to come together as a collective voice, one voice,” she said.
Highest income tax hike in state history
Proposition 208 almost doubled the marginal income tax rate for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent, a 77.7 percent increase.
It also will impact thousands of small businesses with 500 or fewer employees that file their taxes as individuals, not corporations. Meanwhile, the measure does not affect large companies that file under the corporate tax code.
At the breakfast meeting, Rounds discussed economic implications while Riches outlined the legal problems with the new tax.
Here are highlights from each:
What are the economic impacts of Prop. 208?
Rounds, who conducted an analysis of the new tax with the Goldwater Institute, said that any benefits to education will be offset by the damage it will do to the overall economy.
For one, high income earners are not a stable funding source, he said. Their income flow tends to be more “volatile.”
To determine the potential impact of the ballot initiative, the analysts calculated the damage including job losses, suppressed wage growth, dampened business recruitment, and harm to the state’s economic base.
Among the key findings:
The proposition violates constitutional requirement
The new law violates the state’s constitutional requirement that any new tax must be approved by a two-thirds majority of the legislature, which it did not.
“No legislation, whether passed by the people or the legislature, can override or supercede the constitution,” Riches said.
The Goldwater Institute is joined by many others in its legal challenge including the leaders of the Arizona Senate and House, Sen. Karen Fann (R-Prescott) and Rep. Rusty Bowers (R-Mesa); several other Republican legislators; Montie Lee, the owner of Lee Farms; cardiologist Francis Surdakowski; and the Arizona Free Enterprise Club.
A separate lawsuit also was filed by small business owner Ann Siner, CEO of My Sister’s Closet, and John Buttrick, a retired Superior Court judge and federal magistrate.
Both experts said Arizona must find a better way to fund education. Legislative leaders in both the Arizona Senate and House are seeking ways to do just that.
Among the solutions under discussion are mitigating the damage from Prop. 208 with tax reforms. No concrete proposals have been introduced but committee chairs in both houses said mitigation is one of their top priorities this year.
Arizona’s new high income tax from Proposition 208 is bound to discourage new investment, harm thousands of small businesses, and is unconstitutional, two of the state’s leading economic and legal experts told the real estate community last week.
While the tax is intended to provide funding for education, it is flawed in many aspects and will hurt education in the long run if measures aren’t taken to mitigate its impacts, said Jim Rounds, an economist and policy analyst who spoke at a virtual breakfast meeting of the nonprofit Valley Partnership, the voice of the real estate industry in the metro Phoenix region.
“We’re not debating education funding. We’re talking about the best way to fund education,” Rounds of Rounds Consulting in Tempe told a group of more than 175 attendees. “We want to make sure the gains are bigger than the economic losses.”
Rounds was joined by constitutional attorney Jon Riches of the Goldwater Institute, which is challenging the tax in Maricopa County Superior Court. Riches detailed why the measure is unconstitutional on several fronts.
Businesses seeking solutions
Cheryl Lombard, president and CEO of Valley Partnership, said the organization invited the two experts so members could get more information about the controversial measure.
Lombard said her organization supports a “well educated workforce” as part of its strategic plan and is joining with other business organizations to determine what is the best path moving forward. If Prop. 208 is not going to deliver as promised or is invalidated by the courts, the real estate community wants to know that there is a path forward that businesses can support.
“As a business community, we need to come together as a collective voice, one voice,” she said.
Highest income tax hike in state history
Proposition 208 almost doubled the marginal income tax rate for individuals who earn $250,000 or more, and couples earning $500,000 or more, from 4.5 to 8.0 percent, a 77.7 percent increase.
It also will impact thousands of small businesses with 500 or fewer employees that file their taxes as individuals, not corporations. Meanwhile, the measure does not affect large companies that file under the corporate tax code.
At the breakfast meeting, Rounds discussed economic implications while Riches outlined the legal problems with the new tax.
Here are highlights from each:
What are the economic impacts of Prop. 208?
Rounds, who conducted an analysis of the new tax with the Goldwater Institute, said that any benefits to education will be offset by the damage it will do to the overall economy.
For one, high income earners are not a stable funding source, he said. Their income flow tends to be more “volatile.”
To determine the potential impact of the ballot initiative, the analysts calculated the damage including job losses, suppressed wage growth, dampened business recruitment, and harm to the state’s economic base.
Among the key findings:
- A minimum of $2.4 billion in state and local tax revenues will be lost As more businesses fail under the weight of the tax hike, job growth and wages will suffer. A conservative economic modeling of the financial impact indicates that a minimum of $2.4 billion in tax revenues will be lost over the next decade.
- Cuts to social services, public safety, and higher education The new mandate will cause a minimum of $120 million in lost revenues annually to the state’s general fund. Since the proposition requires any decrease in state revenue to be made up from other sources, this will likely put critical services on the chopping block.
- Substantial job losses Under the most conservative scenario, job losses will reach a minimum of 124,000 over the course of 10 years.
- A drop in new business expansion The risk to new business attraction and expansion could be as large as a 25 percent reduction.
- About half of those affected are small business owners Fifty percent of those whose tax rates are expected to be directly targeted are small business owners.
- Why is the new tax unconstitutional? Riches, of the Goldwater Institute, discussed the legal challenge that is being heard in Maricopa County Superior Court. RIches said the measure is flawed constitutionally for a number of reasons including:
- Arizona’s constitution requires limitation on school spending The law illegally exempts itself from expenditure limitations for school districts as set forth in the Arizona Constitution.
The proposition violates constitutional requirement
The new law violates the state’s constitutional requirement that any new tax must be approved by a two-thirds majority of the legislature, which it did not.
“No legislation, whether passed by the people or the legislature, can override or supercede the constitution,” Riches said.
The Goldwater Institute is joined by many others in its legal challenge including the leaders of the Arizona Senate and House, Sen. Karen Fann (R-Prescott) and Rep. Rusty Bowers (R-Mesa); several other Republican legislators; Montie Lee, the owner of Lee Farms; cardiologist Francis Surdakowski; and the Arizona Free Enterprise Club.
A separate lawsuit also was filed by small business owner Ann Siner, CEO of My Sister’s Closet, and John Buttrick, a retired Superior Court judge and federal magistrate.
Both experts said Arizona must find a better way to fund education. Legislative leaders in both the Arizona Senate and House are seeking ways to do just that.
Among the solutions under discussion are mitigating the damage from Prop. 208 with tax reforms. No concrete proposals have been introduced but committee chairs in both houses said mitigation is one of their top priorities this year.
Prop. 208 Fundamentally Threatens Arizona's Small Business Recovery
The Arizona Chamber of Commerce and Industry
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’s Proposition 208 is perhaps the most misguided policy on the ballot—in any state—this 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 58 percent 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 sectors, 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 ranked 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’s 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 claim 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 estimate places the job loss at 124,000. And let’s not forget, fewer Arizonans working means fewer paying normal income and sales taxes, costing 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’s strong economy and quality of life has attracted 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 $6.3 billion in K-12 education. Teachers’ salaries have increased by an average 20 percent statewide.
Since 2000, Arizona has made considerable progress in improving 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’t smart or targeted, it will hurt Arizona’s 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. Chamber of Commerce. Glenn Hamer is president and CEO of the Arizona Chamber of Commerce and Industry.
Glenn Hamer and Suzanne P. Clark
October 7, 2020
This column may be reproduced
The Arizona Chamber of Commerce and Industry
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’s Proposition 208 is perhaps the most misguided policy on the ballot—in any state—this 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 58 percent 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 sectors, 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 ranked 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’s 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 claim 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 estimate places the job loss at 124,000. And let’s not forget, fewer Arizonans working means fewer paying normal income and sales taxes, costing 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’s strong economy and quality of life has attracted 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 $6.3 billion in K-12 education. Teachers’ salaries have increased by an average 20 percent statewide.
Since 2000, Arizona has made considerable progress in improving 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’t smart or targeted, it will hurt Arizona’s 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. Chamber of Commerce. Glenn Hamer is president and CEO of the Arizona Chamber of Commerce and Industry.
Glenn Hamer and Suzanne P. Clark
October 7, 2020
This column may be reproduced
Quayle and Kyl urge voters to reject Prop. 208
Victoria Harker/Arizona Chamber of Commerce
4 min read
Two statesmen with deep roots in Arizona are calling on voters to say “no” to Proposition 208, saying it would place Arizona up there with New York and New Jersey as one of the highest income tax states in the nation.
That would kill many small businesses, cause job losses and shrink tax revenues that support schools and government services, said former Vice President Dan Quayle and former Arizona U.S. Senator Jon Kyl at a virtual event hosted by the Arizona Chamber of Commerce and Industry. The event was sponsored by Total Spectrum, HSL Properties and the Keating Companies.
“Let me be very clear: We are now recovering from a 100-year pandemic and this initiative wants to raise taxes 77.7 percent on individuals and small business? That should be the end of the discussion,” said former Vice President Dan Quayle, a longtime Arizona resident who grew up here.
The initiative, which seeks to tax certain earners to help fund education, would raise Arizona’s top income tax rate from 4.5 percent to 8 percent — a 77.7 percent increase — for individuals who earn over $250,000 and households that earn over $500,000.
Small businesses would shoulder much of the costsWhat most voters do not realize is that a majority of small businesses in Arizona file under the individual tax code, not as corporate filers, said Kyl, who served as a U.S. senator from Arizona 1995 to 2013 and again in 2018.
If the initiative is passed, those companies could end up paying nearly double the 4.9 percent tax rate that big corporations pay.
“More than half of all small businesses pay their taxes as individual income taxes,” Kyl said. “The people who are going to suffer are all of those small business owners and their employees. We’re talking about the dry cleaners, the plumber, the electrician, the pesticide control.”
Prop. 208 is wrong path for education funding At the event, Quayle and Kyl urged about 100 community and business leaders in attendance to educate their constituents on why this initiative is the wrong path for education funding.
They listed a number of reasons why, including:
1. Arizona could lose its competitive edge to surrounding statesA sharp tax increase on individuals and small businesses would put Arizona at a disadvantage when competing with nearby states with similar or no income taxes like Colorado, Nevada, New Mexico and Utah.
“We’ve had a great opportunity for people moving here because other states have messed up. They’ve raised taxes. They’ve made it very unfavorable for businesses and we’ve benefited from that,” Kyl said.
2. Local, state tax revenues would drop If residents and businesses start to fail or flee the state, there are estimates that Arizona could lose a minimum of $2.4 billion in revenue over the next decade as a result of a reduction in business recruitment, job growth, and wages.
3. Sends wealthy taxpayers and businesses packing. Under the weight of this proposed tax increase, about 90,000 wealthy residents would be impacted. Many may be motivated to leave the state. Others would be less likely to move here. The same goes for new investment.
Not only would local and state coffers suffer, so would charities and nonprofits that rely on donations from benefactors and local companies.
4. Voter initiatives are nearly impossible to fix. If Proposition 208 passes, it will be nearly impossible to alter, even in the case of some unintended negative consequence. Once passed by voters, it takes a three-fourths vote by the state Legislature to change a voter initiative. Then, any changes made to the act must further its purpose.
“This is permanent. It’s almost impossible to change,” Quayle said. “A small business may not earn $250,000 today, but five years from now, they’d like to.”
5. Proposition 208 does not adjust for inflation. Unlike current state and federal tax rules, the proposition fails to adjust for inflation. That could sweep more small businesses into higher tax brackets year after year.
6. Most of the funding comes from an out-of-state group. Most of the funding for the initiative’s campaign comes from the Portland, Oregon-based Stand for Children, Inc. with over 87 percent of contributions totaling more than $4 million coming from the group.
Don’t turn Arizona into a “fly-over” state. Arizona has been able to increase its funding for education over the past four years because of its fast growth and healthy economy before the pandemic, both speakers said.
Today, Arizona has a reputation as friendly and open to business with a relatively low tax base, Quayle said. That could change overnight if the initiative passes. “If we go from 4.5 percent to 8 percent, Arizona is going to be known as a fly-over state. Pure and simple.”
Victoria Harker/Arizona Chamber of Commerce
4 min read
Two statesmen with deep roots in Arizona are calling on voters to say “no” to Proposition 208, saying it would place Arizona up there with New York and New Jersey as one of the highest income tax states in the nation.
That would kill many small businesses, cause job losses and shrink tax revenues that support schools and government services, said former Vice President Dan Quayle and former Arizona U.S. Senator Jon Kyl at a virtual event hosted by the Arizona Chamber of Commerce and Industry. The event was sponsored by Total Spectrum, HSL Properties and the Keating Companies.
“Let me be very clear: We are now recovering from a 100-year pandemic and this initiative wants to raise taxes 77.7 percent on individuals and small business? That should be the end of the discussion,” said former Vice President Dan Quayle, a longtime Arizona resident who grew up here.
The initiative, which seeks to tax certain earners to help fund education, would raise Arizona’s top income tax rate from 4.5 percent to 8 percent — a 77.7 percent increase — for individuals who earn over $250,000 and households that earn over $500,000.
Small businesses would shoulder much of the costsWhat most voters do not realize is that a majority of small businesses in Arizona file under the individual tax code, not as corporate filers, said Kyl, who served as a U.S. senator from Arizona 1995 to 2013 and again in 2018.
If the initiative is passed, those companies could end up paying nearly double the 4.9 percent tax rate that big corporations pay.
“More than half of all small businesses pay their taxes as individual income taxes,” Kyl said. “The people who are going to suffer are all of those small business owners and their employees. We’re talking about the dry cleaners, the plumber, the electrician, the pesticide control.”
Prop. 208 is wrong path for education funding At the event, Quayle and Kyl urged about 100 community and business leaders in attendance to educate their constituents on why this initiative is the wrong path for education funding.
They listed a number of reasons why, including:
1. Arizona could lose its competitive edge to surrounding statesA sharp tax increase on individuals and small businesses would put Arizona at a disadvantage when competing with nearby states with similar or no income taxes like Colorado, Nevada, New Mexico and Utah.
“We’ve had a great opportunity for people moving here because other states have messed up. They’ve raised taxes. They’ve made it very unfavorable for businesses and we’ve benefited from that,” Kyl said.
2. Local, state tax revenues would drop If residents and businesses start to fail or flee the state, there are estimates that Arizona could lose a minimum of $2.4 billion in revenue over the next decade as a result of a reduction in business recruitment, job growth, and wages.
3. Sends wealthy taxpayers and businesses packing. Under the weight of this proposed tax increase, about 90,000 wealthy residents would be impacted. Many may be motivated to leave the state. Others would be less likely to move here. The same goes for new investment.
Not only would local and state coffers suffer, so would charities and nonprofits that rely on donations from benefactors and local companies.
4. Voter initiatives are nearly impossible to fix. If Proposition 208 passes, it will be nearly impossible to alter, even in the case of some unintended negative consequence. Once passed by voters, it takes a three-fourths vote by the state Legislature to change a voter initiative. Then, any changes made to the act must further its purpose.
“This is permanent. It’s almost impossible to change,” Quayle said. “A small business may not earn $250,000 today, but five years from now, they’d like to.”
5. Proposition 208 does not adjust for inflation. Unlike current state and federal tax rules, the proposition fails to adjust for inflation. That could sweep more small businesses into higher tax brackets year after year.
6. Most of the funding comes from an out-of-state group. Most of the funding for the initiative’s campaign comes from the Portland, Oregon-based Stand for Children, Inc. with over 87 percent of contributions totaling more than $4 million coming from the group.
Don’t turn Arizona into a “fly-over” state. Arizona has been able to increase its funding for education over the past four years because of its fast growth and healthy economy before the pandemic, both speakers said.
Today, Arizona has a reputation as friendly and open to business with a relatively low tax base, Quayle said. That could change overnight if the initiative passes. “If we go from 4.5 percent to 8 percent, Arizona is going to be known as a fly-over state. Pure and simple.”
Prop 208
The vast majority of funding for this initiative campaign to raise income taxes on individuals and small businesses comes from out-of-state unions and interest groups, according to a review of the campaign’s finance records. https://chamberbusinessnews.com/2020/09/01/few-pro-proposition-208-contributions-from-individual-arizona-donors/
According to the Arizona Chamber of Commerce the proposition will devastate small businesses who will be subject to higher taxes than large corporations at an economically vulnerable time. No accountability for heavily weighted administrative spending & no guarantees on money for teachers. Greatly diminish the attractiveness of doing business in Arizona. Fact Sheet
Summary
Arizona Proposition 208, the Tax on Incomes Exceeding $250,000 for Teacher Salaries and Schools Initiative, is on the ballot in Arizona as an initiated state statute on November 3, 2020.
The vast majority of funding for this initiative campaign to raise income taxes on individuals and small businesses comes from out-of-state unions and interest groups, according to a review of the campaign’s finance records. https://chamberbusinessnews.com/2020/09/01/few-pro-proposition-208-contributions-from-individual-arizona-donors/
Impacts:
A "yes" vote supports this ballot initiative to:
* enact a 3.50% income tax, in addition to the existing income tax (4.50% in 2020), on income above $250,000 (single filing) or $500,000 (joint filing) and
* distribute the revenue from the 3.50% income tax to teacher and classroom support staff salaries, teacher mentoring and retention programs, career and technical education programs, and the Arizona Teachers Academy.
A "no" vote opposes this ballot initiative, thus keeping the highest income tax rate at 4.50% (in 2020) on income above $159,000 (single filing) or $318,000 (joint filing).
Hide-and-Go-Tax: The Largest Tax Increase Ever in Arizona!
You’ve likely seen the new television ad from the pro-Proposition 208 campaign. In case you’ve forgotten, Proposition 208 is the initiative to raise Arizona’s top income tax rate from 4.5% to 8%--a 77.7% increase.
If you haven’t been following the back and forth over this initiative, you’re forgiven if you didn’t know its central provision amounts to the largest tax increase in Arizona history. The TV ad doesn’t mention it at all.
Instead, viewers are told that the initiative would restore education funding. Left out of the script is that Proposition 208’s 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’ contractual pay, they won’t get it from Proposition 208.
The ad touts Proposition 208’s accountability requirements, saying that funds would be “voter-protected.” That has nothing to do with accountability. It’s a statement of Arizona’s existing law that makes it virtually impossible to change a voter-passed initiative. There’s a reason for this obfuscation. There’s absolutely no accountability in this initiative. None. Nada. Zip. Zilch.
The ad promises a lot. Political ads often do. What the ad doesn’t 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’t mention the tax increase at all? Unlike the script, that says a lot.
Written by Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.
This column may be reproduced
ADVOCACY: Proposition 208. Get the FACTS!
The vast majority of funding for this initiative is from out-of-state interests and will raise income taxes on individuals and small businesses
Few Pro-Proposition 208 contributions from individual Arizona donors
See Prop 208 Facts Below
According to the Arizona Chamber of Commerce, the vast majority of funding for an initiative campaign to raise income taxes on individuals and small businesses comes from out-of-state unions and interest groups, according to a review of the campaign’s finance records.
Since January, InvestInEd, the group backing Proposition 208, has raised more than $4.6 million, however only $31,143 have come from individual contributions made by Arizonans. The remaining 99.3 percent has come from Portland, Oregon-based Stand for Children, the Arizona Education Association, and other special interest groups.
“Arizona’s initiative process was never intended to be a petri dish for experimental policy cooked up by wealthy special interests from around the country,” Arizona Free Enterprise Club President Scot Mussi said in June.
In May, InvestInEd described themselves as “A grassroots movement to restore K-12 education funding and power our economic recovery.”
However, the group’s campaign finance records belie the claims of the initiative’s supporters that the campaign enjoys deep Arizona-based grassroots support.
Nearly all pro-Prop. 208 funding coming from special interests
Click here for full article
What You Need to Know
Arizona Proposition 208, the Tax on Incomes Exceeding $250,000 for Teacher Salaries and Schools Initiative, is on the ballot in Arizona as an initiated state statute on November 3, 2020.
A "yes" vote supports this ballot initiative to:
* enact a 3.50% income tax, in addition to the existing income tax (4.50% in 2020), on income above $250,000 (single filing) or $500,000 (joint filing) and
* distribute the revenue from the 3.50% income tax to teacher and classroom support staff salaries, teacher mentoring and retention programs, career and technical education programs, and the Arizona Teachers Academy.
A "no" vote opposes this ballot initiative, thus keeping the highest income tax rate at 4.50% (in 2020) on income above $159,000 (single filing) or $318,000 (joint filing).
Overview
How would the ballot initiative increase income taxes?The ballot initiative would enact a 3.50% income tax, in addition to the existing income tax, on income above $250,000 (single filing) or $500,000 (joint filing).[1]
As of 2020, the highest income tax in Arizona was 4.50%, which was levied on income above $159,000 (single filing) or $318,000 (joint filing). Based on the existing income tax rates, the ballot initiative would have the effect of increasing the tax rate from 3.50% to 8.00% on income above $250,000 (single filing) or $500,000 (joint filing).[1]
How would the tax revenue be distributed?The ballot initiative would require that revenue from the 3.50% income tax be placed in the Student Support and Safety Fund (SSSF), which would be distributed as follows:[1]
- 50% as grants to school districts, charter schools, and state schools for the deaf and blind—in proportion to the weighted student count—to hire teachers and classroom support personnel and increase base compensation for teachers and classroom support personnel;
- 25% as grants to school districts, charter schools, and state schools for the deaf and blind—in proportion to the weighted student count—to hire student support services personnel and increasing base compensation for student support services personnel;
- 10% as grants to school districts, charter schools, and state schools for the deaf and blind—in proportion to the weighted student count—to provide mentoring and retention programming for new classroom teachers;
- 12% to the Career Training and Workforce Fund, which would provide multi-year grants to school districts, charter schools, and career technical districts for career and technical programs for grades 9-12, college-level educational opportunities, academic acceleration programs, tutoring, mentoring, counseling, mental health services for high school students, and hiring school counselors; and
- 3% to the Arizona Teachers Academy Fund, which was created to provide incentives and mentoring for students to become teachers and teach within the public school system.
Landlords sue, say Ducey lacks authority to stop evictions
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
According to the Arizona Capitol Times Landlords and mobile home park owners from around the state are asking the Arizona Supreme Court to void an executive order by Gov. Doug Ducey blocking evictions of tenants who do not pay their rent.
The lawsuit claims the governor lacks the constitutional authority to tell constables around the state not to process eviction orders, even those issued legally by judges. It also contends that the gubernatorial directive is violating both the property rights of landowners as well as their right to enter into contracts.
In seeking review, the lawsuit acknowledges that the governor can exercise certain powers in a public health emergency. But attorney Kory Langhofer, who prepared the legal filing, said that Ducey, in unilaterally barring landlords from enforcing the terms of lawful lease agreements, created “an indefinite economic welfare and redistribution program, rather than a public health measure to contain the COVID-19 contagion.”
PPP Loans helped nearly 1,500 local businesses
A new Surprise Regional Chamber of Commerce report showed almost 1,500 small businesses in the Northwest Valley have received $155 million in PPP loan assistance.
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Based the Chamber’s latest data, the PPP loans helped to retain 6,879 workers in the region (El Mirage, Sun City, Sun City West, Surprise, Waddell and Youngtown.) However, several small businesses in Surprise and surrounding areas are still suffering from the COVID-19 slowdown and waiting for Congress to act on additional bailout money.
“When the previous bailout programs were rolled out there was much confusion and turbulence, and small businesses did not initially fair well,” Chamber President and CEO Raoul Sada said. “The Chamber wants to do its part, making sure that does not happen again, and we are lobbying Capitol Hill for a packages that favor small businesses.”
Key Points:
•The SBA has just released a massive trove of data on PPP loans. This was a significant step forward in transparency by the government, prior to this the SBA resisted requests to share the recipients of the funds. This is why it is so important for the Chamber to hold government officials accountable, and for us to demand transparency at all levels of government (local, state and federal!)
•More than 81,000 Arizona businesses and nonprofits have received forgivable loans through the federal government's Paycheck Protection Program totaling $8.6 billion, according to the U.S. Small Business Administration.
•The Paycheck Protection Program, which was designed to avert mass layoffs during the Covid-19 pandemic.
•PPP loans are not made by SBA. PPP loans are made by lending institutions and then guaranteed by SBA.
•According to the data, 58 businesses in Arizona received between $5 and $10 million, the maximum amount allowed under the program. But the vast majority of loans, approximately 86%, are valued under $150,000.
•Close to 1500 small businesses received PPP loans in the six cities that make up the Chambers service territory. The amount of cash infused into our local economy was over $154 million dollars! Based on application data, the loans help to retain 6,879 workers in our region.
•Approximately 42 businesses were non-profits (2.8% of the recipients)
Surprise Independent News Coverage
|
|
See What Businesses are Open and Their COVID-19 Safeguards Based on a self -reported survey, as on 05/11/2020. Information is subject to change without notice. The collection and dissemination of the data was a combined effort between the City of Surprise and the Surprise Regional Chamber of Commerce. ShopSurprise Receive Special Deals, Promotions and Community Messages from Local Merchants, and your Chamber of Commerce. All messages are sent Directly to Your Phone! Get advance notice of new restaurants, grand openings, community events and more. It's FREE! Enroll Now |
|
|
Chamber’s NW Valley COVID-19 Consumer Survey Results Are In
Survey Results Make the Paper-Click Here to Read the Article Consumers, not the government, will ultimately decide when the economy will open—that is why it is important for citizens and businesses to know what people are thinking. Please share your comments on our Facebook page! Government leaders and public health officials will make decisions, and issue guidance on when we return to work, but truly regaining some semblance of normalcy will be determined by how people feel and what motivates them to act or not act. The Chambers recent survey sheds more light about what consumers are thinking in the NW Valley . Share your comments on our Facebook page Take Our 1-Minute Survey |
Business COVID-19 Survey Results
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
Survey Makes Front Page of Surprise Independent- Read the Story
CEOs across the globe are coming to terms with the reality that business will be anything but normal over the coming months as the impact of the coronavirus pandemic continues to escalate.
But while revenues are set to suffer a short-term hit, the majority of leaders remain confident that their companies will be back on solid footing within the year, according to a new study on the business impact of the outbreak of COVID-19.
The survey results found that 82% of business leaders expect declines in revenues over the next six months, but more than half (54%) anticipate revenues will be back to normal in a year’s time. And 61% of CEOs expect their total fixed investments to remain unchanged year on year.
How Business Owners are Responding
Among the industries seeing the greatest impact from the fallout are hospitality and travel (89%), education (87%) and media and entertainment (80%). Meanwhile, production firms in agriculture, factories, mines and utilities reported some uptick in revenues.
Nevertheless, business leaders across the board (95%) said they’re taking new measures curb the impact of the virus. That includes communicating more regularly with employees (68%), adopting new health and safety procedures (67%), cancelling major events (64%) and halting business travel (53%).
Meanwhile, other respondents, when asked for their advice for business leaders, recommended the following:
- Focus on the facts
- Communicate regularly with employees and stakeholders/customers
- Stabilize supply chains
- Make short-term and long-term plans
Citation: The Survey was conducted by YPO a global leadership community of more than 29,000 chief executives in 130 countries. Full Press Release
USMCA AGREEMENT IS A WIN FOR THE NORTH WEST VALLEY
By any measure, the push to get the U.S.-Mexico-Canada Agreement (USMCA) passed — which preserves and strengthens our economic ties with our neighbors and top two export markets — was a three-year-long process. And it did not happen by accident.
The U.S. Chamber, the Surprise Regional Chamber as well thousands of chambers from around the country put the full weight of our alliances behind this historic effort. A special thank you to all local businesses in our region who contacted their elected officials and encouraged them to support the agreement. The new U.S.-Mexico-Canada Agreement is expected to usher tangible benefits for the NW Valley including agriculture, technology, manufacturing, and other business sectors, industry analysts say.
Here’s a brief overview of what’s in it:
- Country of origin rules: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
- Labor provisions: 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour by 2023. Mexico agreed to pass new labor laws to give greater protection to workers, including migrants and women. Most notably, these laws are supposed to make it easier for Mexican workers to unionize.
- US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, a big issue for Trump.
- Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also includes new provisions to deal with the digital economy, such as prohibiting duties on things like music and ebooks, and protections for internet companies, so they’re not liable for content their users produce.
- Sunset clause: The agreement adds a 16-year sunset clause — meaning the terms of the agreement expire, or “sunset,” after 16 years. The deal is also subject to review every six years, at which point the US, Mexico, and Canada can decide to extend the USMCA.
First-Ever Scorecard Released
Who Made the List? Our first-ever scorecard evaluates the votes of each state senator and representative and represents the positions of the West Valley Chamber Alliance that were communicated to our state lawmakers throughout the 2019 Regular Session. The scorecard helps the business community know where their elected officials stand on issues that affect us all. Click Here for Full Report
The Surprise Regional Chamber of Commerce (Districts 13, 21 and 22) would like to recognize Rick Gray, Frank Carroll, Tim Dunn and Joanne Osborne for having 100% scores in support of pro-business policies.
As a Chamber, we commend those elected leaders with scores above 80% and recognize them as Free Enterprise Champions for recognizing the vital role businesses play and supporting those businesses through common sense, pro-business, and growth-oriented public policy. All elected officials in Districts 13, 21 and 22 earned the Free Enterprise Champion designation which included Rick Gray, Ben Toma, Frank Carroll, Kevin Payne, Tony Rivera, David Livingston, Tim Dunn, Joanne Osborne and Sine Kerr.
Chamber1
TAKE THE SURVEY NOW
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
2020 Business Climate Census Survey
Many in our business community are experiencing both challenges and successes as our economy grows. As we work to secure the NW Valley's future, it is crucial that the Surprise Regional Chamber of Commerce understand what issues are most important to businesses. The purpose of the Business Climate Survey is to track trends and issues affecting businesses and to inform elected officials about the issues and concerns of the local business community.
Click Here Now, To Take Our Annual Business Climate Survey
|
|
|