Arizona Budget Discussions:
Alternative Policies for State Sales Tax
After asking the legislature for over a year to approve a one percent sales tax increase, Governor Brewer finally obtained the legislatures’ approval to let the voters decide about increasing the sales tax. This vote will occur on May 18, 2010 on a measure called PROP 100.
This policy discussion really asks one simple question, "Does the damage of the proposed spending cuts justify the costs to Arizona families from increasing the sales tax by 18%?"
Political Discussion of Sales Tax Increase
Click for Stakeholder Presentation to Maintain the Sales Tax
Policy Proposal #2A:
Increase Sales Tax by 18%
The Need to Preserve Education
Jan Brewer
Governor of Arizona
2010 Candidate for Governor
"The decisions are tough, but doing the right thing often means doing the hard things. It is a tough decision. But it is the right decision. Please help me preserve public safety and education for our state and our future."
February 25, 2010
"You think this is easy for me to go around (and) be the bearer of the news? The checkbook is overdrawn, we’ve maxed out the credit cards, we’ve mortgaged the house."
March 28, 2010
"Did the Governor consider any other revenue generating to avoid this sales tax increase ballot measure?"
April 2, 2010
Policy Proposal #2B:
Maintain Existing Sales Tax Rate
No Linkage to Corporate Tax Cuts
Terry Goddard
Arizona Attorney General
Democratic Candidate for Governor
"Most troubling to me, however, is the fact that voters are being asked to pass this tax increase without knowing the status of other tax proposals still being considered by the legislature, including a plan to slash hundreds of millions of dollars in corporate taxes. Middle-income Arizonans simply should not be asked to finance through temporary higher sales taxes a permanent non-targeted cut in corporate taxes."
March 17, 2010
"After a year of debate, isn't it fair to expect the Governor to tell us if she is for or against corporate tax reductions?"
March 29, 2010
Cut Spending to Match Revenues
Buz Mills
Businessman
2010 Candidate for Governor
"Professional politicians just don’t get it. When they see a budget that has $9.5 billion in spending, and revenues of only $6 billion, what do they do?
They tell us we’re not paying enough and then try to raise taxes. This (PROP 100) is an 18% sales tax increase (from 5.6% to 6.6%) and will give Arizona the 5th highest sales tax in the nation."
February 25, 2010
Comments on the Sales Tax
Don’t Tax Businesses & Working Families
John McCain & Jon Kyl
Arizona Senators
"We fundamentally oppose increasing taxes on small business and working families."
March 9, 2010
Comments on the Sales Tax
Economic Discussion of Sales Tax Increase
Click to See the Full Economic Discussion Including Questions and Responses
Policy Proposal #2A:
Increase Sales Tax by 18%
Sales Tax Supported if More Cuts
Kevin McCarthy
Arizona Tax Research Association
"ATRA views the temporary tax as a management tool that will hopefully decrease the use of damaging budget gimmicks over the next three years. This tax has to be combined with further budget cuts over the next three years to ensure a balanced budget in Fiscal Year 2014."
March 23, 2010
"What were the budget gimmicks used over the past eighteen months as we waited for the legislature to refer this sales tax increase to the voters?"
March 28, 2010
Policy Proposal #2B:
Maintain Existing Sales Tax Rate
Sales Tax Hurts the Economy
Dr. Byron Schlomach
Goldwater Institute
"Studies show that raising the sales tax by 18 percent will cut the state’s real economic output by $1.2 billion and that Arizonans will see their total after-tax income, already hit hard by recession, fall by an average of $300 per household.
What’s more, these proposals don’t take into account that the state’s property taxes went up this year, or the electricity tax passed by the Corporation Commission a few years ago."
March 23, 2010
"Does the State of Arizona rely too heavily on sales taxes to provide the state the revenues it needs?"
March 13, 2010
Social Discussion of Sales Tax Increase
Click to See the Full Social Discussion Including Questions and Responses
Policy Proposal #2A:
Increase Sales Tax by 18%
Sales Tax Helps Protect Education
John Wright
Arizona Education Association
"We are at risk of losing exactly the types of programs that international research says we need to be improving.
We want to help bridge the current budget gap by bringing revenue from sales tax and doing what we can to hold up the cuts that will really damage schools."
Griselda Nevarez
Cronkite News Service
March 3, 2010
"Will the revenues from the sales tax increase really make a difference in providing education, health care and public safety?"
March 18, 2010
Policy Proposal #2B:
Maintain Existing Sales Tax Rate
Unions Will Try To Scare the Public
Thayer Verschoor
Ax the Tax
"Defeating Proposition 100 will not be easy.
In a low turnout election, the sky-is-falling propaganda from the employee unions, AHCCCS providers and other progressive interests could persuade uninformed voters."
February 25, 2010
"Who are the groups who are making large contributions to the PROP 100 campaign? Why are they making these contributions."
March 13, 2010
The Vote: A Public Relations Campaign
Bruce Merrill
Arizona State University
"The side that has the ability to scare people the most generally does better."
February 6, 2010
"Can we expect to see more ads like the Professional Firefighters ad in support of PROP 100?"
March 24, 2010
in Support of Prop 100
The Budget Shell Game
Valley Business Owners
(and Concerned Citizens), Inc.
"This tax is not about education, health and human services and public safety.
This is a bait and switch scam to divert funds already designated for these purposes to make up for a staggering misappropriation public funds."
February 25, 2010