Report: Prop 208 could hurt economy in long run; supporters disagree
PHOENIX – A new report says passing Proposition 208, commonly known as the Invest in Ed initiative, could hurt Arizona’s economy in the long run.
Jim Rounds, Goldwater Senior Fellow and co-author of the report, told KTAR News 92.3 FM Tuesday, that if Prop 208 becomes law, some consequences could include “a reduction in business recruitment, a very slight reduction in job growth rate and a slight reduction in the wages of the new jobs coming in.”
Prop. 208 made it to the November ballot after surviving court challenges earlier this year.
It aims to place a 3.5% tax surcharge on those with an annual incoming exceeding $250,000 (single filing) or $500,000 (joint filing), according to the ballot approved by the Arizona Secretary of State.
Rounds explained those small changes in economic growth and quality build-up during a 10-year period could result in 124,000 lost jobs among other things. He added that Prop 208 is simply the wrong initiative at the wrong time due to the economic downturn.
But supporters for the initiative say that’s not the case.
“Prop. 208 will be good for our economy. It will bring more business to our state, and it’ll greatly improve our workforce,” David Lujan, Director of the Arizona Center for Economic Progress, told KTAR News 92.3 FM on Wednesday.
Lujan added, if passed, Prop. 208 would only impact Arizona’s top 1%.
“Ninety-nine percent of Arizonans will not pay a single penny more,” Lujan said.