Arizona Legislature

Since a picture is worth a thousand words…

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Crossposted from RestoreReason.com.  My views line up with much of what AZBlueMeanie says, but can’t agree with him on Prop 123.  I am intimately aware of the deal and think it is the best we can do at this point.  Our schools need the money now, they can’t wait another 5+ years.  Plus, once we … Read more

Part 2 – Why Ducey’s Promise to Cut Taxes is a Lie

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In my previous post, I showed why Governor Ducey’s focus on tax reduction is a disastrous recipe for our state. Now let’s look at how those tax reductions we’ve been seeing aren’t really helping the average Arizonan. Instead, we continue to see the tax burden transferred from those who have, to those who can least afford.

Governor Ducey is intent on eliminating income tax in Arizona. Why might you ask? Because, for this Governor and others like him, it is ALL about business. And although corporate tax breaks are good for large business, 97% of the employers in Arizona are small businesses like S-corporations, LLCs and partnerships. These businesses amount to over 40% of the private workforce and are currently taxed by the state via income tax. I’m not sure whether ASU’s Center for the Study of Economic Liberty 2015 policy report by Stephen Slivinski is the “policy roadmap to elimination of the Arizona income tax” as it claims, or, if it was written to support Governor Ducey’s tax reduction plan. At any rate, Slivinski concludes in the report that: “The best hope Arizona policymakers have to eliminate the income tax is to phase it out over a number of years while maintaining budget balance.” He also makes the point that now that the state is on “surer fiscal footing”; it is time for Arizona policymakers “to look at important and necessary reforms over the next couple of years.” Waiting longer he claims, “may result in losing a golden opportunity.” Sounds like a Ducey talking point commercial to me.

Arizona already has though, the 13th-lowest individual income tax and the 10th-lowest combined state and local income tax in the Nation. Additionally, according to an article in Business Insider in August 2014, Arizona’s economy was ranked the 4th fastest growing in the US after Colorado, California and Texas. Of course, we also have the 4th highest poverty rate in the US with one in five Arizonans living in poverty. Obviously, there are winners and losers in Arizona’s current economy and Governor Ducey’s insistence on eliminating the state income tax and shifting state revenue collection to increased sales tax will do nothing to help those who most need it. Although sales tax is said to be a less volatile form of revenue than income tax, it also is the most regressive, hitting the poorest the hardest.

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Why Ducey’s Promise to Lower Taxes is a Lie

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During Governor Ducey’s inaugural address in 2015, he indicated that he would not support higher taxes with: “prosperity moves, and as taxes go up, it moves away. Gone as well are jobs, people and companies that found a better welcome someplace else.” Likewise, during his 2016 State of the State address, he bragged about lowering … Read more

Open Letter to Governor Ducey

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It was fitting that your propaganda piece, “Arizona schools win big in my budget” was published in AZCentral.com’s “AZ I See It” column. After all, I understand this is your view of reality. But, the fact that it is your view, doesn’t make it factual.

You open your piece speaking of last year: “we protected priorities, like K-12 education…” Not sure how you can claim you protected K-12 education when in 2015, you cut $113.5 million from K-12 district schools and reduced charter additional assistance funding by $10.3 million. This year, you claim credit for “an historic $3.5 billion funding package for schools.” Yeah Governor, you are just a regular education philanthropist, digging deep into the schools own coffers (state trust lands revenues set aside for education funding) to give our schools the money they’ve been owed since 2009. You offered this deal to take additional monies from state trust lands, despite Arizona ending last fiscal year with an extra $312 million in the bank and being on-track to end FY2017 with $621 million. To add insult to injury, you now plan to pad the states’ rainy day fund with an additional $10 million to bring the balance to $470 million. I have to wonder how many corporate tax breaks will that fund?

 Despite your largely unearned grandstanding, I’m going to hold my nose and vote for Prop. 123, because I think it is the only way we will get any significant additional funding for our schools anytime soon. Rest assured though that education advocates throughout the state are going into this eyes wide open. We know there are caps and triggers in the deal that could allow the legislature to cheat our kids yet again. Just know that we will be more vigilant than ever and that “Hell hath no fury” like advocates scorned after negotiating in good faith.

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$82,996 is low income…REALLY?

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Kudos to Arizona Representative Doug Coleman, R-Apache Junction, who has introduced HB 2063 to cap the limit for corporate donations to School Tuition Organizations.  His bill looks to cap the “year-over-year limit at 2 percent or inflation for the Phoenix metropolitan area” for corporate donations.  501(c)(3) tax-exempt organizations, these STOs allocate at least 90% of … Read more