Posted by AzBlueMeanie:
Rep. Steve Court (R-Mesa), the sponsor of HB 2636, the Tea-Publican "flat tax," should apply to be the next character in Diet Dr. Pepper's Hunt for the Unbelievable ads, because like the Easter Bunny, Santa Claus, the Tooth Fairy and unicorns, Court believes in things that are pure fantasy (sorry kids).
It is bad enough that all Tea-Publicans believe in faith based (fantasy based) supply-side "trickle down" economics simply because Ronald Reagan was once associated with it (they all conveniently ignore the fact that Reagan later rejected its tenents and even raised taxes several times). No, now they want to follow the idiot son pied piper, Steve Forbes, who made his money the old fashioned way: he inherited it from his daddy, down the road to ruin of the "flat tax" fantasy.
The "flat tax" was conceived of by the rich for the benefit of the rich. It is a scheme to transfer wealth from the working class, the American middle class, to the investor class, the idle rich children of inherited wealth who spend their days gambling in the casino capitalism of Wall Street. And it is accomplished by selling a gullible public on the fantasy that this is somehow "fair."
The overwhelming majority of Americans earn less than $100,000. It is undisputed that under Rep. Court's "flat tax" fantasy, your income taxes will be going up by almost $200 — an amount that Court dismissively says would "not be a huge increase." Well, I suppose he would feel that way when he is carrying water for the über-rich who light their cigars with $100 bills. His "reality" is not the same as yours and mine.
If Arizona shifts to a one-size-fits-all income tax, it would raise taxes for 88 percent of Arizona filers while cutting them for the 12 percent with a taxable income of more than $100,000 a year, a legislative analysis shows. Arizona flat income tax a hike for many:
House Bill 2636 would increase the tax burden on lower- and middle-class taxpayers while giving the wealthy a tax cut.
(You can read the entire JLBC analysis here.)
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[Court] acknowledged the shift in tax policy would mean higher income taxes for many but said it would not be a huge increase.
"The average in each of those categories is the individual would not pay more than $200," he said, citing information the state Department of Revenue prepared for him.
He declined to share that information. He also said he didn't know the impact of tax cuts on those with an adjusted income of $100,000 or more.
But the Children's Action Alliance said an analysis it commissioned from the Washington, D.C.-based Institute on Taxation and Economic Policy shows higher-income earners would gain an average tax savings of $918. That was based on taxable incomes ranging from $152,000 to $354,000.
The advocacy group's analysis agrees with Court's estimate of an average increase of about $200 for those with incomes below $100,000.
Arizona has a structural revenue deficit brought on by 20 years of ideological faith based (fantasy based) supply-side "trickle down" GOP economics tax cuts that were never paid for. Court's "flat tax" fantasy will worsen Arizona's structural revenue defict and make it permanent.
The flat tax would be phased in and would be fully in place by 2015. Legislative budget analysts estimate it would reduce the state's general fund by $50 million.
This "flat tax" fantasy still permits tax credits for the Tea-Publicans' favorite culture war issue of "school choice" and privatization.
[T]he bill retains most tax credits, which are taken after a person's Arizona taxable income has been calculated. They include credits for contributions to school-tuition organizations, contributions to after-school activities in the public schools and donations to the working poor.
There are going to be a lot more "working poor" if this "flat tax" fantasy becomes law, and they cannot rely on the charitable contributions of the über-rich.
This is the height of recklessness and fiscal irresponsiblity. These are not serious, responsible people. Their ultimate goal is the defunding of government to "drown it in the bathtub" as their lord and master Grover Norquist has commanded them, and to enrich further the already über-rich. As Paul Farrell wrote for the Wall Street Journal MarketWatch, this is a New Civil War, led by the super rich.
For the JLBC's breakdown of the impact HB 2636 (You can read the entire JLBC analysis here) and how this "flat tax" will affect you:
If this bill is enacted and signed by the governor, it should immediately be subject to a referendum, the "People's Veto." The referendum effort should be paired with an initiative effort for the The Fairness in Taxation Act:
The Fairness in Taxation Act calls for creating new tax brackets for the richest Americans, starting at a 45 percent rate for people whose income is $1 million. The bracket would impose the highest rate — 49 percent — on billionaires.
Arizona taxpayers should be given the choice and the final word between a regressive "flat tax" fantasy and a truly "progressive" and "fair" income tax structure.