Tag Archives: tax credits

Stop Thief! Community Forum on Restoring Fair Taxes

Arizona Legislature

HB2479 was was a sales tax exemption with an unknown price tag. Despite being hotly debated, it passed the House on a bipartisan vote.

LD9 House incumbents– Dr. Randy Friese and I– will be the featured speakers at the Stop Thief community forum on tax giveaways on July 31 at the IBEW Hall.

As many of you are aware, Arizona is upside down on its mortgage. Thanks to years of Republican tax cuts, our state gives away more than $13 billion in taxes and spends just $10 billion to run the state. For years, the people of Arizona believed the lie that our state is broke. Now the veil has been lifted. The people realize that our state has plenty of revenue. The problem is that the majority of our Legislators vote to give the money away–rather than spend it on much-needed services– like public education.

Austerity is a lie. Arizona has the money to fund public education. The problem is: the Legislature gives our taxes away. It’s time to end crony capitalism in Arizona.

When the Arizona budget comes up short because of the tax giveaways, loopholes, and sweetheart deals, Republicans cut funds from K-12 education, the universities, the community colleges, healthcare, and environmental protections. OR they suggest raising sales tax to fill in the budget gaps caused by tax cuts for the rich and for the corporations. (Unfortunately, some Democrats go along with more tax cuts for the powerful and more sales tax for the rest of us.)

The Arizona Legislature should be funding the People’s To-Do List– education, healthcare, infrastructure, and safety and security– not the corporate wish list.

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Focus People, Focus!

Cross-posted from RestoreReason.com.

I was at a SOS AZ presentation on public education funding last night and after a slide about corporate tax credits, one young woman advocated for holding the corporations responsible for not supporting our schools. Although I would normally be one of the first to vilify corporate America for their greed at the expense of the rest of us, I think her ire was a little misplaced. Arizona corporations after all, are just taking advantage of the laws incentivizing them to act a certain way. These aren’t loopholes that corporations are paying high-powered lawyers and accountants to find for them, but incentives the Legislature has directly handed to them to. It isn’t after all, like the tax credits allow the corporations to pocket more profit, they are still paying out the same amount of money (whether in taxes or credits), they just get to choose where their taxes go.

THEREIN lies the rub. THEY get to choose where their tax dollars go…not us, the people. That’s the problem with all these tax credits and exemptions, 331 is the number I heard last night, that the Arizona Legislature has granted. You see, ideally, tax credits should be granted to incentivize behavior that voters want and that produces good for all of us. We’ve all heard the saying though, that “power corrupts and absolute power corrupts absolutely.” When all the power in a government is consolidated on one side, the tendency is not to look at the common good, but the good of “your” people. And, when it is apparent to lawmakers that they can act with impunity because they will continue to get reelected despite their failure to provide for all the people in their care, the tendency is for them to do whatever they want.

Yes, corporations also have a responsibility to care about the common good, but I really don’t blame them for taking advantage of legal incentives for directing their tax dollars where the Legislature wants. The rest of us suffer though, because these incentives reduce the size of our general fund “pie”. We also suffer because the diverted funding, essentially our tax dollars, then has no accountability nor transparency associated with it. We don’t know if it is being used for the purpose intended and we certainly don’t know the return on our investment. Continue reading

Happy (sort of) Anniversary

Cross-posted from RestoreReason.com.

Five years ago today, I wrote and published my first-ever blog post. It was titled, “Don’t Believe the Pundits, Traditional Public Education Works.”

Since then, I’ve written over 230 posts which garnered over 16,300 views. I hope I’ve enlightened a few folks about the war against public education, and am grateful for all those who read my words and took time to comment. Our efforts are stronger when we stand together!

What I’m not grateful for, is the fact that nothing much has come out of the AZ Legislature in the last five years to make the situation better for our district schools.  I wrote then about how education tax credits siphon funding away from our district schools. The caps for corporate tax credits have grown from about $56.6 million in 2013 to $94 million in 2018, and the President of the AZ Senate, Steven Yarbrough (who has enriched himself through his School Tuition Organization or STO), is proposing legislative changes that will grow the program even more.

I also wrote about Empowerment Scholarship Accounts (ESAs) or vouchers. I discussed how they redistribute state revenue and that most of the students receiving these vouchers, would have attended private schools without taxpayer help. That is still true today, but instead of 302 students accessing the program five years ago at a cost to the state of $5.2 million, there were 4,102 in 2017 at a cost of $37 million. Moreover, in 2017, more than 75 percent of the money pulled out of public schools for vouchers, came from districts with an A or B rating, not from schools that are failing. Continue reading

Size Matters

Cross-posted from RestoreReason.com.

The recent Arizona Town Hall on “Funding PreK–12 Education”, reported that, after “three days of serious and intense deliberations, [we] believe there is a state of emergency with respect to Arizona’s underfunding of our preK–12 education system, which requires urgent, decisive action.” This Town Hall effort was non-partisan, including a cross-section of diverse participants traveling from across the state to convene in Mesa. The intent of the effort was to discuss how best to fund preK–12 education now and in the future while improving the quality of education provided.

In their yet draft report, the Town Hall states in that, “Arizona already dedicates approximately 43% of the state’s general fund to K–12 education spending – good enough for a ranking of 11th nationally, as compared to average general fund spending of 35% among other states – the problem has more to do with the ”size of the pie” than a lack of relative support for preK–12 education spending.

That led me to notice an Arizona Daily Star story today titled, “Here’s how to use your tax credits to help public schools.” Although there isn’t a public school out there that doesn’t appreciate the tax credit dollars that come in, in the bigger picture they are as much as part of the problem, as they help. Firstly, they exacerbate inequities between private schools and public schools and between public schools themselves. Taxpayers can claim a five-fold greater tax credit for private schools (up to $1,089 per person versus only $200 for public schools.) Secondly, the tax credit monies given to private schools can be used for any purpose versus the limitation to extracurricular activities or character education programs that public schools must live with. Continue reading