Arizona overtaxed? Hardly.

by

by David Safier

Tasl_sm(TASL)

It seems tax-and-spend liberals are coming out of hiding these days. The latest voice is the Citizen in an editorial, The case for higher taxes. 

The subhead says it all: "Study finds cuts — not spending increases — to be the major cause of state budget deficit."

Who woulda thunk that when you cut taxes to the bone, you can't afford to pay for stuff.

Just two years ago, Arizona legislators passed some of the largest tax cuts in state history. That year, the state had a $1.5 billion surplus, and lawmakers foolishly didn't think the good times would ever end.

In 2006, the Legislature proposed – and Gov. Janet Napolitano agreed to – 5 percent income tax cuts in each of the next two years. Arizona's income tax already was among the nation's lowest, and effects of the cut on individuals were minimal.

A cut in the state property tax was handled in a much wiser manner. The tax was to be suspended for three years, then scheduled to automatically resume unless legislators and the governor agreed to extend the suspension.

That property tax suspension will probably be made permanent if Brewer is our governor.

Here's a list of Arizona's tax ranking in a number of categories. Note that our tax bite is low in every category but cigarettes and sales tax, both of which tend to hit the poorest Arizonans hardest.

Alcoholic beverage taxes:30th
Cigarette excise taxes: 12th
Gasoline taxes: 32nd
Income tax rate:39th
Property tax rate: 42nd
Sales tax rate: 3rd
Vehicle tax rate:19th
Maximum state corporate income tax rate: 27th
State tax burden for retirees:35th
Total state & local tax burden in largest city: 43rd
State & local tax burden as a percent of income:32nd

[Source: The Taxpayers Network]

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