Voter approval of California ballot measures increasing income taxes on the rich as well as state sales and business taxes is prompting another Arizona effort to poach jobs and companies from the Golden State.
California voters approved Governor Jerry Brown’s-backedProposition 30, a $6 billion temporary tax increase to help alleviate budget woes.
It raises income taxes for those making more than $250,000 per year. Californians making $1 million or more will pay a 13.3 percent state income tax rate — up from 10.3 percent.
Phoenix Business Journal reports The Greater Phoenix Economic Council is offering free airfare and hotel rooms to the first 50 California CEOs and high-tech and high-wage business owners who want to look at Arizona for new locations, relocations or jobs.
“In Arizona, we need California to turn its economy around – we depend on it. Unfortunately, policies like Proposition 30 are driving the state’s best innovators away in droves,” said GPEC CEO Barry Broome said.
Arizona has long benefited from being next to California’s large economy. Some California companies locate back-office, distribution and production operations in Arizona. Others have fled California’s higher taxes and stiffer regulations to Arizona and other states.
Arizona’s state sales tax will go back down to 5.6 percent next year after the failure of Proposition 204.
