Arizona’s Republican gubernatorial nominee Kari Lake told Arizonans that economic relief might be on the horizon in a new ad released Sunday detailing her plan to fight high costs if elected as the state’s next governor.
“Thanks to Joe Biden’s and Katie Hobbs’ liberal tax-and-spend agenda, Arizona has one of the highest rates of inflation in the country. Katie Hobbs and the Democrat Party won’t do anything to provide relief for Arizonans, but Kari Lake will,” said the Kari Lake campaign in a statement.
In her new ad – part of a million-dollar, multi-channel media buy – Lake slammed Democrats for reckless spending that put the country where it is now, saying she will fight back. She said she would eliminate the taxes on groceries and rent to accomplish this.
“Arizona families are struggling to choose between paying their rent and putting food on the table. I know what that’s like. I grew up in a household where there wasn’t always enough food,” Lake said in the ad. “You shouldn’t have to pay taxes just to put food on the table or have a place to live. When I’m governor, you won’t.”
Amid Joe Biden and Katie Hobbs’ skyrocketing inflation, you shouldn’t have to pay taxes just to put food on the table and a roof over your head.
Watch my new ad on my plan to cut taxes and provide real, immediate relief from inflation for ALL Arizonans. pic.twitter.com/1LoslopaZV
— Kari Lake (@KariLake) October 10, 2022
But there is more to Lake’s economic plan than these tax cuts. With Arizona’s general fund in a current surplus, she said the state can handle the loss of income the taxes collect. Lake also said she would cut other taxes, like sales and property, every year while in office. Making Arizona’s economy competitive is also on Lake’s to-do list, which entails identifying and rolling back unnecessary regulations to attract new businesses to the state.
Furthermore, new companies will need ready employees, so Lake proposed a dual-track education plan that will give students real-world experience and trade skills starting in 10th grade. If graduating students choose to do so, they could leave high school and immediately jump into the workforce with fundamental skills that qualify them for high-paying jobs.
“Arizona’s economy is poised to lead the way in the next decade. My plan will help Arizona build one of the most competitive and prosperous economies in the country and create endless opportunities for Arizona’s families,” Lake said in her plan.
However, some economists argue that Lake’s plan to cut taxes may worsen some economic problems plaguing Arizona, such as inflation. Arizona State University economist Dennis Hoffman told 12 News that the issue creating inflation is “too much money chasing too few goods.” To fight inflation, he said, the supply of goods in the marketplace needs to increase while the amount of money people spend decreases. Therefore, Hoffman said Lake’s plan to put more money in people’s pockets through tax cuts could increase spending and ultimately make inflation rise.
Yet, Lake’s plan could still bring relief. While giving consumers more money through tax cuts can increase inflation, increasing the labor force and productivity can counteract this. According to the World Economic Forum, a long-term solution to inflation is a more productive workforce that creates more goods and services, putting downward pressure on prices. Still, the government needs to incentivize businesses to produce these goods, in a manner similar to the regulation cuts Lake outlined in her plan.
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