PHOENIX  Saying higher taxes would make the economy worse, Republicans on the House Ways and Means Committee voted Monday to permanently repeal the state property tax.

The 5-3 partyline vote came after a parade of business lobbyists said higher taxes could drive some already struggling firms under. And Glenn Hamer, president of the Arizona Chamber of Commerce and Industry, said the levy also would make it harder to convince firms to locate in the state.

Hamer, under questioning from Rep. Steve Farley, DTucson, acknowledged that state lawmakers will have $250 million less in taxes to run government if the levy does not return as scheduled later this year. Farley questioned the advisability of foregoing revenues with projections showing the gap between anticipated tax collections and expenses next year could hit $2.4 billion.

But Hamer said the economic theories he believes suggest that letting the tax return would, over time, cost the state more in revenues from decreased business activity than what the levy would generate immediately.

"But what I can say with 100 percent certainty, if that tax comes back, more Arizonans will lose their jobs, more Arizonans that are struggling to stay in their homes will find it more difficult to do so.''

Elizabeth Slaine, who teaches English at Tucson Magnet High School, said she sees the issue in a different light.

Slaine said when the state doesn't have enough tax revenues, that means less money for education. And she said Arizona's economy won't improve unless there are people qualified to be in business.

"We have to have educated students who are ready to start these businesses,'' she said.

That contention drew derision from Rep. Andy Biggs, R-Gilbert.

``Education does not create jobs,'' he said. ``Entrepreneurs and businesses create jobs.''

And Biggs said it won't matter whether Arizona has the best-educated workforce in the country if higher taxes drive companies out of business.

The argument by Slaine and others that eliminating the tax will hurt education drew an angry reaction from Rep. Rick Murphy, RGlendale, who chairs the committee, who said he is "tired of hearing'' that lawmakers hate children.

He said virtually every state has had to cut education funding to balance its budget. Murphy called the 2 percent cuts to K12 financing in Arizona "pretty mild.''

HB 2073, which now goes to the House Appropriations Committee, is at the top of the Republican legislative agenda.

Lawmakers, in a deal with then Gov. Janet Napolitano, suspended the levy in 2006 for three years when the state had a surplus. If lawmakers do not act, the levy returns automatically later this year.

The tax is considered particularly onerous for business and is considered by many to be a detriment to economic development. That's because in Arizona, unlike many other states, business property is assessed for tax purposes at a rate more than twice as high as residential property. So a $200,000 business might pay $190 a year, compared to $86 owed by the owner of a $200,000 home.

But that's not all: Businesses are taxed each year not only on land and buildings, like homeowners, but also on all of their equipment, ranging from expensive computer chip fabrication machines to office equipment. That makes Arizona particularly unattractive for manufacturing operations which, in general, pay higher than operations like credit card processing centers.

Gov. Jan Brewer has yet to take a position on whether the levy should be repealed.

Brewer, in office now for slightly more than a months following Napolitano's resignation, has repeatedly said that ``everything has to be on the table'' to deal with the deficit. But Brewer also has stressed she is not a fan of higher taxes.

Monday's vote may just be the beginning of efforts to cut taxes, particularly on businesses: Committee members began debating -- but did not vote on -- another of Murphy's bills, this one to cut corporate income taxes, reduce property taxes that companies pay on equipment and slash the taxes paid on capital gains.