The new report showing Arizona’s jobless rate on the rise for the third month in a row is fueling a key debate in the gubernatorial campaign. It comes as the state phases in a series of tax cuts aimed at stimulating the economy.
And, as Republican gubernatorial candidate Doug Ducey promises future tax cuts, if elected, including driving the personal income tax to as close to zero as possible. But Democrat Fred DuVal says further broad-based tax cuts do not make sense.
“We have been very aggressive about reducing tax rates waiting for the great comeback to occur. And what I would say is, it, by itself, has not succeeded," DuVal said.
DuVal says businesses want a trained workforce and schools for the children of executives. Ducey, though, says it’s not that simple and that tax cuts are also important.
“They're not mutually exclusive of each other. And when someone is considering relocating their company out here, they can find good schools for their children," Ducey said. "We know how to educate a child here in the state of Arizona.”
But, even though most other states have recovered, Arizona still has 137,000 fewer jobs now than before the recession.