The Arizona Republic today recommends a “no” vote on Prop. 126. If you hate taxes, Prop. 126 is a no-brainer, right? Well, not exactly:
The appeal of Proposition 126 is that it would prohibit imposing a sales tax on services in Arizona.
So, Prop. 126 is a no-brainer then? Far from it.
Why? Because in shielding services from being taxed, the Protect Arizona Taxpayers Act.
It may mean, for instance, a hike in marginal income-tax rates. Or a higher sales tax on goods.
Why nix an important revenue source?
Talk of new revenue took on greater urgency this year following the #RedforEd movement that prompted Gov. Doug Ducey to pledge a 20-percent raise in teacher pay and more money for schools over the next few years. Even with an improved economy, it’s uncertain whether there will be sufficient tax revenue to pay for it all.
The issue gains more relevance now that an education-funding initiative involving raising income taxes on the rich has been knocked off the Nov. 6 ballot.