|
PAUSE IN LEGISLATIVE ACTION
Rumors are circulating at the State Capitol about taking a break from the legislative session after floor actions in the last couple of weeks. Budget negotiations are on hold until the Governor's Office receives updated revenue numbers. Legislative leaders are inclined to not require lawmakers from across the state to travel to Phoenix to pledge, pray, and sit around.
SENATOR SINEMA TO RETIRE
Arizona Senator Kyrsten Sinema (I-AZ) announced this week that she will retire at the end of her term and will not seek reelection.
“The only political victories that matter these days are symbolic, attacking your opponents on cable news or social media. Compromise is a dirty word,” said Sinema in an address to her constituents. “We’ve arrived at that crossroad, and we chose anger and division. I believe in my approach. But, it’s not what America wants right now. I love Arizona and I am so proud of what we’ve delivered. Because I choose civility, understanding, listening, working together to get stuff done, I will leave the Senate at the end of this year.”
Both Democrat Ruben Gallego (D-03-AZ), currently serving in the House of Representatives, and Republican Kari Lake, a former local news presenter backed by Donald Trump, sought to unseat Sinema. Now they will likely go head-to-head in the general election.
ARIZONA REVENUES SLIGHTLY HIGHER
February 2024 General Fund revenue collections came in slightly higher than the enacted budget. This represents an increase of 29.5% above February 2023. Given that taxpayer withholding is now more aligned with the state's current tax policy, refunds were expected to decline in the tax filing season during February 2024 through April 2024.
ECONOMIC VIEWPOINTS
275,000 Jobs added by employers in February
8.9 million Job openings at the end of January
The America Works Initiative helps employers develop and discover the talent needed to fill open jobs.
The American Works Data Center offers a quick understanding of the state of the workforce.
INFLATION REMAINS HIGHER THAN FED'S TARGET
The Consumer Price Index, the broadest measure of consumer prices, rose 3.2% annually in February, compared with January’s 3.1% increase.
- Core prices, which strip out volatile elements like food and energy and are closely watched by the Federal Reserve, rose 3.8% annually.
Why it matters: Inflation remains above the Fed’s 2% target.
Be smart: The administration misses the mark on why inflation is happening. Instead, it takes actions that raise prices, like a regulation that will increase costs for Americans who pay their credit card bills on time.
The fact is, that inflation is caused by clear and well-understood economic factors. Prices rise when we have too many dollars chasing too few goods and services. Businesses respond to these price changes.
- As the Fed slows the growth in the money supply through interest rate increases, inflation will continue falling, but that takes time.
Looking ahead: The Fed will likely hold interest rates where they are in the coming months as it allows its previous rate increases to lower inflation further.
SMALL BUSINESS OUTLOOK
According to the Wall Street Journal Vistage Small Business CEO Confidence Index,
* 51% of small businesses see consumer demand growing
* 54% of small businesses plan to hire more workers in the next year.
LEARN MORE
NEW COALITION TO PROTECT U.S. INNOVATION FROM GOVERNMENT CONFISCATION
The U.S. Chamber of Commerce is partnering with entrepreneurs and advocates to launch a coalition to counter emerging policy threats to U.S. innovation from excessive government overreach, also known as "march-in rights." This includes a recent Biden Administration proposal allowing the government to "march-in" and seize the intellectual property (IP) rights held by an American company if it received any federal funding for research, including in conjunction with universities.
However, proposals from Washington pose a threat to progress and risk fostering a hostile environment for U.S. innovation and IP rights.
In response, the U.S. Chamber today announced the creation of the Business Alliance to Stop Innovation Confiscation Coalition (BASIC Coalition), bringing together diverse voices from the energy, technology, manufacturing, telecommunications, semiconductors, and pharmaceutical industries who share a common belief in the benefits of public-private partnerships to deliver solutions, solve problems, and enhance lives.
More Information Here.
HOW DIGITAL TRADE BENEFITS THE AMERICAN ECONOMY
The digital revolution is delivering substantial benefits for the U.S. economy, driving growth, prosperity, and dynamism across every state and congressional district. For decades, American innovation has positioned the U.S. as the global leader in the digital economy, and the digital revolution means that U.S. exports increasingly rely on digital trade. America needs strong digital trade rules that:
- Open international markets for American service providers, manufacturers, and agri-businesses to export an ever-increasing number of digitally enabled goods and services.
- Facilitate data flows, the lifeblood of the digital economy.
- Protect intellectual property embedded in digital goods and services.
- Prevent discriminatory treatment of American companies in foreign markets.
However, an abrupt policy change by the Biden administration has undermined American leadership on digital trade and is threatening the continued success of U.S. firms large and small.
Read More
| 
