Poor J.D. Mesnard.
The former Arizona State House Speaker and current Senator from Legislative District 17 was clearly the odd man out on a four-man panel gathered by Luige Del Puerto of the Arizona Capitol Times to discuss the Republican proposed budget that includes a 2.5 percent flat tax.
The other panelists were:
- House Democratic Leader Reginald Bolding.
- Children’s Action Alliance and former Democratic Legislative Leader head David Lujan.
- City of Maricopa Mayor Christian Price.
While the Republican Mesnard maintained that, while he supported the flat tax provisions, he was not yet a yes vote on the budget because he thinks the spending levels are too high (not very comforting,) the other three panelists blasted the proposal because:
- The flat tax could cripple cities and towns.
- The tax cuts go overwhelmingly to those who do not need it, the wealthy.
- Once passed, with the exception of a voter ballot initiative (more on that below,) it would be virtually impossible to pass an increase with the law requiring a two-thirds vote in the State Legislature.
- There is not enough investment in crucial areas like education, KidsCare, affordable housing, and infrastructure.
Mayor Price Made Strong Points on What could happen to Arizona Cities and Towns.
Mayor Price, who probably had the best comments among the panelists likened the Republican proposal to a “meat cleaver budget” that is “unrealistic” and a potential “fiscal cliff.”
According to Price, the proposal is a “meat cleaver budget” because, if passed as is, could wipe away $300,000,000 from Arizona Cities and Towns. Standing to lose three million of that, Price pointed out that he may have to cut vital services like police and firefighters in Maricopa to balance their budget.
The Maricopa Mayor called the budget “unrealistic” because it anticipates that cities and towns would be able to make up any income tax revenue shortfall with increased sales tax receipts in recreational marijuana sales for example. Price pointed out no such industry currently exists in Maricopa so they would probably not be receiving extra funding from that area.
When Mr. Mesnard, who earlier said that the rich pay more in taxes than anyone else, pointed out that Mayors could raise their regressive city sales or property taxes, Price shot back, saying he was not interested in being “the bad guy.”
Mr. Price felt that if this budget passed with no realistic safeguards, that the state might plunge over a “fiscal cliff.”
House Democratic Leader Bolding says a Flat Tax is not needed and warns trouble will happen if the Republican Budget passes.
House Democratic Leader Reginald Bolding echoed Price that trouble could come if the Republican budget, in its current form, passes.
Noting that one of the reasons we have a budget surplus of four billion dollars is the population increase of the state, Mr. Bolding said that future governors and state legislators will be “handicapped” if this Republican plan passes because while it only takes a simple majority to pass a tax decrease, it takes two thirds one to enact an increase.
After the population surge is over and economic activity grinds down, it may be a different fiscal outlook for the state.
Bolding, citing the population and economic growth of the state, also said, contrary to Republican trickle-down talking points, there is no need for a flat tax. The state is doing well without it. He said it is better to target the surplus to investments in areas like infrastructure and education.
David Lujan said the Invest in Ed Coalition is ready to go to the Ballot again: To repeal the flat tax if it passes the Legislature.
Children’s Action Alliance Head and former Democratic Legislative Leader David Lujan agreed with Bolding that more investments in vital areas were needed in the state budget.
He cited the fact that the Republican budget funds ten million dollars in capitol hill building renovation projects but not the $12.5 million needed to expand KidsCare, the state children’s health care program.
Lujan, like Bolding, said that for the “peanuts” he and organizations like his are asking the state to fund the most vital and vulnerable, it is very affordable given the current state fiscal conditions.
With regards to the flat tax, Mr. Lujan said that this regressive measure would “decimate Arizona’s future and leave 80 percent of Arizonans behind.”
He later repeated what was reported in the May 25 Yellow Sheet: that if the flat tax passes the state legislature, the Invest in Ed coalition will consider gathering the approximate 118,000 signatures necessary to put a measure on the 2022 ballot to let voters have the final say if the rich can have their big tax cut.
Mr. Mesnard seemed to think that such a ballot measure would turn out favorably with tax-cut advocates.
Mr. Lujan, and recent polling reported by AZ Central, suggest otherwise.
The people, by considerable margins, prefer increased funding for schools and public safety (firefighters, police, and border security) rather than a large tax cut that benefits the wealthy.
Unfortunately, most Republicans have given up on what the majority thinks a long time ago and if it takes the voters again to stop them at the ballot box with another initiative or series of measures, so be it.
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