Warns of perils for small businesses if Proposition 207 is passed by voters
Economists at the Rounds Consulting Group have just taken the first analysis of Proposition 207, and it’s not good for small business. Report highlights include:
- “The near doubling of individual income taxes for certain tax brackets will directly impact a significant portion of the small businesses in the state since the owners pay the individual income tax and not the corporate income tax.
- “The initiative will also result in economic losses that will disproportionately impact the smaller, local market operations that provide support to the larger corporations and their employees.
- “To add insult to injury, the initiative will make it difficult for business owners to reinvest and expand their own companies.”
The report’s two-page summation can be read here.
“Small business owners knew from the onset how devastating Proposition 207 could be to their businesses,” said Chad Heinrich, Arizona state director for NFIB. “This economic analysis puts it into an even starker reality than we imagined.”
Heinrich highlighted two sentences in the report that voters should heed: “Initiative proponents argue that this is a very small group of wealthy people and that no economic harm will arise. This argument is dangerously incorrect.”
Heinrich said that as voters learn more about how this ill-minded initiative will cripple Arizona’s small business economy, the chances of defeating Prop. 207 will improve.