Category Archives: Arizona State Legislature

Kansas is a cautionary tale for Arizona, and America

In 2012, Koch-bot governor Sam Brownback led a radical Tea-Publican legislature to enact the “Kansas experiment” out of blind faith in trickle-down economics. They enacted “a tax cut that eliminated state income taxes entirely for pass-through entities — such as sole proprietorships and limited liability partnerships — which are taxed at the owner’s individual income tax rate. The law also lowered individual income tax rates, cutting the top rate to 4.9 percent from 6.4 percent.” Kansas Tried a Tax Plan Similar to Trump’s. It Failed.

The tax package reduced state revenue by nearly $700 million a year, a drop of about 8 percent, from 2013 through 2016, according to the Kansas Legislative Research Department, forcing officials to shorten school calendars, delay highway repairs and reduce aid to the poor. Research suggests the package did not stimulate the economy, certainly not enough to pay for the tax cut. This year, legislators passed a bill to largely rescind the law, saying it had not worked as intended.

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[C]ongressional Republicans and President Trump are trying to take the experiment with pass-through preferences national, beyond Wichita and Topeka to cities with residents who measure incomes in seven, eight or nine figures.

The Republican tax rewrite unveiled this month aims to jump-start economic growth in part by establishing a 25 percent tax rate on small businesses and other firms that operate as pass-through entities, a cut from the top rate of 39.6 percent that such business owners pay now.

But the abandoned experiment in Kansas points to how a carve-out intended to help raise growth and create jobs instead created an incentive for residents, particularly high earners, to avoid paying state income taxes by changing how they got paid.

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So how’s that trickle-down working out for Arizona?

The Arizona Capitol Times (subscription required) reports that Arizona Legislature’s budget analysts predict 2018 shortfall:

The Arizona Legislature’s budget analysts last Thursday predicted a budget shortfall that could top $100 million in the current and coming year as the impact of corporate tax cuts continues to overwhelm increases in sales, insurance premium and personal income tax collections.

Whaaa? You mean tax cuts don’t pay for themselves and are revenue neutral? (sarcasm).

Chief budget analyst Richard Stavneak told economists and state officials who make up the Legislature’s Finance Advisory Committee that the shortfall will hit $104 million. That’s out of an expected $10 billion in spending for the budget year that begins next July 1. A panel of state lawmakers also attended the meeting.

Excluded from that projection is $90 million in current spending that is labeled one-time but appears to be an ongoing commitment by the Legislature and Gov. Doug Ducey, Stavneak said. That puts the expected shortfall next year close to $200 million if that spending isn’t cut. The revenue picture could also brighten, but signals are mixed, he said.

Phased-in corporate tax cuts enacted under former Gov. Jan Brewer in 2011 have cut more than $600 million in yearly revenue since 2014. Rep. Don Shooter, R-Yuma, said it may be time to revisit the corporate tax cuts and predicted a budget battle next year.

“It’s going to be a free-for-all. We’re back to the cutting, I don’t see any other way,” Shooter said. “It’s going to come down to who’s going to bleed the least, what’s going to be the least painful, I guess.”

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200 Stories: Tucson Healthcare Forum, Oct 29

200 Stories: Tucson Healthcare Forum

Do you have concerns about the Affordable Care Act and repeal attempts; about the future of Medicare and Medicaid; or about access to care or the cost of drugs?

Whether you are a patient or a provider, we want to hear your medical and health insurance stories. The LD9 and LD10 Legislators are holding an open mic forum in which we listen, you talk, and we all learn.

This is a free educational community event for residents of Pima County. It’s about listening and learning from each other. Senators David Bradley and Steve Farley and Representatives Kirsten Engel, Randy Friese, and Pamela Powers Hannley have confirmed their attendance. (Rep. Todd Clodfelter was invited but has a scheduling conflict.)

In the news, we hear what politicians and big corporations think should be done with our country’s overly complicated and extremely expensive health care system. At this event, the people of Southern Arizona will have an opportunity to tell us their stories and help shape future policy.

Mark your calendars for October 29, 2017. The event will be held 1:30-3:30 p.m. at the Unitarian Universalist Church of Tucson, 4831 E. 22nd St.

Please take a few minutes to register with EventBrite by clicking here. We want to make sure we have enough seats.

Watch Facebook and other social media for updates.

Rep. Powers Hannley: 2017 Legislative Report Card (video)

Rep. Pamela Powers HannleyIn 2016, I ran for the Arizona House on a platform of economic reform, equality, and tackling the opioid epidemic. I stood up to big-money politics and ran as a Clean Elections candidate, despite much advice to take the money and run.

I am honored that you elected me on Nov. 8, 2016. This year in the Legislature, I fought for fairness and stood up for your rights with my voice, my votes, and my bills.

I am running for re-election in 2018. As a Clean Elections candidate, I have pledged not to take big-money donations from special interests. This is my report card to you, the voters of Legislative District 9. It has been an honor to serve you.

Economic Reform & Public Banking 

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Ducey is a disaster for Arizona

Governor Doug Ducey, the ice cream man hired by Koch industries to run their Southwest subsidiary formerly known as the state of Arizona, self-labels himself, for purely propaganda purposes, as “the education governor.”

The governor’s label would be a joke if his misguided policies did not come with serious and dire consequences for the actual condition of public education in Arizona.

Perhaps the governor should accept responsibility for his policies making Arizona the worst — that’s right, dead last — in public education, as the Republic’s Laurie Roberts describes. Arizona ranks as worst state to be a teacher:

Quick, what is the worst state in which to be a teacher?

If you said Arizona, give yourself a gold star.

WalletHub this week released its annual rankings for the best – and worst – states in  which to spend a career in the classroom. The financial services website compared the 50 states and Washington D.C., analyzing 21 key indicators, ranging from income growth potential to class size to safety.

The best states in which to be a teacher: New York, New Jersey, Illinois, Connecticut, Pennsylvania.

The worst: Florida, Mississippi, South Carolina, Hawaii and finally, down there in our usual spot at the bottom of the barrel, Arizona.

We ranked as one of the states with the highest turnover, the highest student-teacher ratios and the lowest spending per student.

And we ranked as dead last in the number of people expected to be competing for teacher jobs by 2024. Gee, I wonder why.

Lest you think things are looking up, two years ago Arizona ranked 49th  overall. Now, we’re 51st.

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Ducey v. Brnovich on ABOR tuition lawsuit

Doug Ducey, the ice cream man hired by Koch Industries to run their Southwest subsidiary formerly know as the state of Arizona, is an ex officio member of the Arizona Board of Regents (ABOR), recently sued by Attorney General Mark Brnovich in a publicity stunt over high tuition rates at the state universities.

Governor Ducey says his AG Mark Brnovich is full-o-crap. Ducey stands by ABOR, says tuition rates are constitutional:

Arizona’s three universities are in compliance with constitutional requirements to keep instruction “as nearly free as possible,” Gov. Doug Ducey said Thursday, despite what Attorney General Mark Brnovich contends.

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More to the point, the governor said he believes the regents, in setting tuition — and even in imposing sharp increases during the past 15 years — are keeping the cost of instruction within what the constitution requires.

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