Today’s video topic is tax giveaways. Do tax breaks for developers, sports teams and big corporations really spur economic development? In Arizona’s 53rd Legislative Session there was a growing bipartisan backlash against tax giveaways (including tax exemptions, tax cuts and tax credits). Many tax giveaway deals died like the capital gains tax cut and the tax exemption for digital goods purchases in 2018 and several corporate welfare bills in 2017.
After all, Arizona state government is giving away or otherwise excusing more than $13 billion in taxes each year and saving only about $10 billion to run the state. The teacher raise was accomplished through 50 fund transfers from one department to another, plus several efficiency savings which transfer programs to other funding sources outside of the general fund. That is no way to run a government.
I stand against the tax giveaways and with #RedForEd. If we ever want to fully fund public education, we have to stop cutting taxes and stop giving tax revenue away.
For this reason, I am a Rio Nuevo skeptic. Rio Nuevo is a $14 million sales tax giveaway that passed in 2018 and was extended to 2035. Rio Nuevo is a tax increment financing district (tif). If you look on the Internet, the jury is out regarding how well tifs work or if they are a good investment of public funds. I have several unanswered questions about Rio Nuevo. What is the total taxpayer investment in each Rio Nuevo project (ie, Rio Nuevo funds, city sales tax rebate, free land, city GPLET deal, Arizona Commerce Authority, and federal incentives)?
What is our real return on investment and how many of what type of jobs were created (not just the rosy projections)? Is this the best use of taxpayer funds when our city has so much need? I am asking these questions on your behalf. It’s your money!