One of the prevailing messages from the grassroots in 2018 was: no more tax giveaways until the schools are fully funded. Republicans didn’t get that message. They also didn’t get the Invest In Ed message that we — the people– think the rich could pay more in taxes to help fund education.
The Republican budget cuts income taxes, TPT and fees by $386 million and leaves education and other needs underfunded (or unfunded).
We started the year with a $1 billion surplus to invest in the People’s To-Do List: education, infrastructure, healthcare and safety and security. The Republicans have added bits of money to these areas — just enough to make it look like they’re doing something— but the need is much greater.
Republicans are ignoring multiple crises that are brewing in our state including unnecessary maternal and child death; rock bottom education funding; crumbling roads, bridges and school buildings; lack affordable and low-income housing; the shortage of teachers, doctors and nurses; too many people living in poverty; lack of access to affordable healthcare… need I go on?
Continue reading #AZ Republican Budget Cuts Taxes by $386 Mil & Shortchanges K-12 (video)
Vaping is a hot topic in the Arizona Legislature this session. E-cigarettes (also known as nicotine vape pens) are unregulated in Arizona. Nicotine vaping is widespread, and usage is increasing, particularly among youth.
Many adults use nicotine vape pens as a way to stop smoking real cigarettes. E-cigarettes don’t have the particulates that tobacco cigarettes do, but that doesn’t mean they are safe.
We have had two competing vaping bills in the Legislature. SB1147 is a tobacco industry bill that carves out vaping and regulates it separately in the Arizona statutes; it also preempts local laws. HB2357 regulates “any product derived from tobacco or containing nicotine” the same.
Back in the 1990s, when e-cigarettes first came to the US, tobacco control researchers at the UA and elsewhere said that e-cigarettes were “drug delivery devices” that should be regulated by the Food and Drug Administration (FDA). The tobacco industry fought this and said e-cigarettes were tobacco and should be regulated like tobacco. They won their court case at the national level, and e-cigarettes have been regulated like tobacco since then.
HB2357 is aligned with the federal law. SB1147 puts vaping into its own category— not a tobacco product or a nicotine delivery device.
Public health advocates are backing HB2357, and so am I.
For more background about these two bills, check out this story in the Capitol Times.
Many constituents have asked me where the budget is and what’s going on– after all, it is May. On the budget, the status quo of the past month still exists. All of the budget action continues to be behind closed doors, among a closed group of Republicans.
In addition to the Democrats, there are a significant number of House Republicans who are not part of the budget process, and they’re grumbling about it. This is a state budget– not the budget for a small town church. The deacons and the pastor don’t get to decide the budget on their own in the back room. The budget should be negotiated with all parties at the table– not just a handful of those close to power. Democrats make up 48 percent of the Arizona House. When more than 50 percent of the Legislature is kept in the dark and has to rely on rumors, that is not a fair process, and it ultimately hurts the people of Arizona.
Except for the Governor’s budget, which has been public for months, and some leaked details about the Senate Republican budget, little is known about the budget, beyond a few trial balloons. What we do know is that the Senate Republican budget is far more conservative and not even close to Governor Doug Ducey’s budget.
This chasm in the GOP has left an opening for Democrats. The House Democrats will unveil our balanced budget ideas on Wednesday morning at 9:30 a.m. We have been saying since January that we agreed with parts of the governor’s budget– like full tax conformity and more money for P-20 education. [Stay tuned for details.]
On the right, Senator J.D. Mesnard and other tax cut fans still want to zero-out the money the state could bring in from tax conformity (~$150 million) and Wayfair (~$85 million). There are multiple trial balloons about making the income tax rates flatter. One proposal is to have only two personal income tax brackets. This is a horrible idea– unless, of course, your goal is to return to austerity and Draconian budget cuts, while making your rich donors happy. Under the Republican proposals to eliminate or lower tax brackets, rich people would pay less, and the rest of us could pay more. (Think of the Republican tax bracket plan as Arizona’s mini-Me to the Trump Tax Cut and Jobs Act. Both significantly lower taxes for the wealthy by reducing the top tax rate.)
Continue reading What’s the News on the #AZ Budget? Check Out Video & Town Hall
The budget is still being negotiated behind closed doors. The Republicans have passed several tax cut bills, but not all of them have been heard in Committee of the Whole (COW, where the real debates happen).
We also have not heard the “Wayfair Bill” in COW because it is stalled in House Rules (with several other bills). HB2702 passed House Ways and Means unanimously several weeks ago but never got to the Floor for debate or a vote.
South Dakota vs Wayfair Inc. is the supreme court case that said states can charge sales tax on online sales. States, local governments, and brick and mortar businesses have been losing trillions of dollars to online retailers. Just look around town, and you will see fewer local businesses, less stock on the shelves, and many vacant store fronts. Taxing in-person purchases but not online purchases is unfair to local small businesses, hurts our local economy, reduces the General Fund (thus reducing education funding), and ultimately reduces consumer choice.
Arizona residents made $1.7 trillion worth of online purchases in 2018. That is how much Arizona businesses lost in sales. On those purchases, the state lost $85 million in sales tax (TPT). Cities and counties lost more than $45 million. Prop 301 (the education sales tax) lost $10.2 million.
Continue reading With ‘Wayfair’ Bill Stalled, Will Republicans Stop New Revenue Streams? (Video)
If you often scratch your head at the bad bills that the Republicans pass in Congress and in the state legislatures and wonder what their end game is, you should read Democracy in Chains by Nancy McClean.
What you may think are random bad ideas that have somehow gotten into law are actually part of a grand scheme that has been playing out since Brown versus the Board of Education attempted to desegregate public schools in the United States.
An academic, McClean has studied the articles, books and letters of James Buchanan, the economist not the former president. Buchanan was the primary theorist of public choice theory. In the 1950s, public choice theory was used as a rationale to close all of the public schools in the state of Virginia (rather than comply with desegregation) and is being used today to support state-funded vouchers for private and religious schools. In Virginia in the 1950s, the state gave money to white parents for private school vouchers and allowed hundreds of black children to go uneducated for years. Needless to say, this was a travesty of justice.
Continue reading ‘Democracy in Chains’ Connects Dots on Libertarian & Republican Strategies (video)
Homelessness, transitional housing, low-income housing and affordable housing are obviously big problems in the state of Arizona. Currently, the Arizona House is considering a mixed bag of bills that tackle different parts of the housing problem.
Today’s video focuses on SB1471 which provides a creative funding mechanism to put up to $10 million per year in the Housing Trust Fund for homeless youth and families. There are no federal HUD funds for this population.
SB1471 sets up a process for the state of Arizona to collect capital gains taxes on sales of Arizona property owned by out of state individuals. Apparently, compliance with capital gains taxes owed by out-of-state investors is less than 30%. This bill is projected to make around $8 million of year and could go higher. If more than $10 million is collected, the excess goes into the general fund.
We heard SB1471 in Ways and Means this week, and several other housing bills related to the seriously mentally ill (SB1336), AHCCCS members, youth (SB1539), widows and the elderly (SB1383), and other vulnerable populations (SB1098) passed out of the House Health and Human Services Committee unanimously. (I am on both of these committees.)
Why is there so much need? Because the Republicans have repeatedly swept the Housing Trust Fund since the dark reign of the Tea Party began in 2011.
All of the housing bills passed out of the Senate and out of the House committees. Will they make it into law? I hope so. (There is one caveat to this hopeful housing post. A housing tax credit bill, which passed out of House Ways and Means but died, has been revived in the Senate as a striker. Affordable housing tax credit bills sound good but cost the state tens of millions of dollars over time. Direct help to people is easier and more cost effective.)
Are we done? No.
Instead of a scatter shot approach of random bills to tackle housing and homelessness, what we need is a comprehensive approach, with adequate funding to make a difference.
The Arizona House Ways and Means Committee is like an extended game of tax giveaway wack-a-mole. I have lost count how many tax giveaway bills Republicans have passed since January.
This week, we heard SB1027, which dramatically increases a tax credit that currently benefits only poor children with chronic diseases or physical disabilities.
Tax credits take money out of the general fund. SB1027 would dramatically expand this tax credit from helping poor children with certain medical conditions to helping *anyone* of any age and any income who has a chronic illness or physical disability.
This bill is overly broad, and it has an unknown cost and no sunset date. Most of the committee testimony focused on one physical therapy center and gym in Tucson that serves clients with Parkinson’s disease, but there are many chronic diseases, most notably diabetes. More than 600,000 Arizonans have diabetes, and another 1.8 million have prediabetes.
The public health problem of helping people lead healthier lives with chronic disease goes far beyond what would be fiscally responsible to fund through tax credits. Medicare, Medicaid, and commercial insurance cover some services. If more is needed, the Health and Human Services Committee should look at it– instead of going to Ways and Means for a tax credit.
Continue reading Legislators Should Stand with #RedForEd: No New Tax Giveaways (video)
For many years, author and historian John Nichols has been coming to Tucson for the Festival of Books. In addition to his popular appearances at the Book Festival, Nichols has a tradition of speaking on Saturday evening at a free event hosted by Progressive Democrats of American (PDA Tucson) and the Pima Area Labor Federation (PALF).
2019 is no exception. Nichols will appear at the IBEW Hall on Saturday, March 2, with doors open at 6 p.m. and the event beginning at 6:30 p.m. Rep. Pamela Powers Hannley will warm up the crowd with local political news from the Arizona Legislature. Powers Hannley was recently named “most valuable state Legislator” by The Nation magazine.
Nichols is a consummate storyteller and political historian. He writes for The Nation and is a frequent commentator on MSNBC and Democracy Now. He is the author of Uprising, Dollarocarcy, and more recently Horsemen of the Trumpocalypse: A Field Guid to the Most Dangerous People in America.
If you have never heard Nichols speak, I urge you to take advantage of this free event– away from the crowds and parking hassles of the University of Arizona. Here are a few video clips from past years. The 2019 event is sponsored by PDA Tucson, PALF, and Our Revolution- Arizona for Bernie Sanders. Facebook event here.
Continue reading John Nichols of ‘The Nation’ Returns to Tucson (video)
The Arizona House is moving at a snail’s pace this session. In fact, Senator David Bradley has quipped that the Senate should take a one-month vacation so the House can catch up.
According to the Chief Clerk, as of Friday, the end of the fifth week of session, 744 House bills were dropped. Forth-seven percent of the bills (349)– including the Equal Rights Amendment (ERA)– have not been first read (the first step in the process). Only 50 bills (7%) have been third read (the final vote). We voted on about half of those 50 on Thursday afternoon. The coming week will be NUTS because it is the final week for the House to hear House bills and for the Senate to hear Senate bills. At this point, there are a lot of bipartisan bills on the cutting room floor in the Speaker’s office.
With a 29-31 (D-R) split in the House, Speaker Rusty Bowers has been extremely cautious about what bills get to the floor for debate and a vote. Except for tax conformity, nothing controversial has made it to a “third read” vote. The vast majority of the bills we have voted on thus far passed through committee unanimously and passed the floor unanimously (or with just a few dissenters from one side or the other). We have had lively debates on ideological bills in my committees– Regulatory Affairs, Ways and Means, and Health and Human Services– but those bills haven’t made it to the floor yet. For example, Republicans on the Regulatory Affairs Committee passed a sub-minimum wage for workers under 22 who are also full-time students. Republicans on the Ways and Means Committee passed two different an income tax breaks to the wealthiest Arizonans. Republicans on the Health and Human Services Committee passed a bill labeling pornography as a public health crisis. (What about gun violence as a public health crisis?)
What has been left unheard in committee or on the floor? Plenty.
Continue reading Speaker Bowers: It’s Time to Hear the People’s Agenda (video)
The Arizona Legislature waited until the last moment to tackle two big issues– the Drought Contingency Plan (DCP) and tax conformity. We voted on both of these on January 31, 2019. The DCP, which was negotiated in advance, cleared the Legislature with 100% voting for passage. In contrast, the tax conformity vote sparked much drama and debate. Legislative Republicans dug in their heels over revenue-neutral tax conformity and insisted on a tax cut to benefit the richest Arizonans, while Governor Doug Ducey and the Democrats argued for fiscal responsibility and full tax conformity.
In the end, 100% of Republican Legislators bucked the governor’s wishes and passed a $150-200 tax cut. Ducey promptly vetoed SB1143 the next day and blasted Legislators on Twitter. Now we are at a standstill, due to infighting in the Republican Party. What side will win? Ideology or fiscal responsibility?
Here’s the rest of the story …
Continue reading Ducey & Dems Battle #AZGOP Over Conformity with Trump Tax Plan (video)