Throughout last week as we debated multiple tax giveaways, I repeatedly asked, “Is $1 billion in new tax giveaways too much?”
In debate on Thursday, Rep. Mitzi Epstein and I showcased the 18 Republican bills that give away potentially $1 billion and revealed how little the bill sponsors actually know about the revenue losses that their proposals will create. (I say “potentially” because seven tax giveaway bills have an unknown cost. We shouldn’t be passing bills when we don’t know the economic impact!)
On Thursday, we were debating Rep. Bret Roberts’ HB2752, which was projected to be a $64 million hit to the general fund in FY21, $71 million in FY22, and $110 million in FY23. There was a floor amendment that said it change the calculations for the tax break. Roberts refused to answer a my question regarding how the calculations had changed and whether the cost was going to go up or down from the projected figures. It doesn’t necessarily work out well for the Republicans when they refuse to answer questions. Since he refused, I asked Epstein about this. The upshot is that the amendment made Roberts’ bill even worse and pushed it into the unknown cost column, bringing that total to eight tax breaks with an unknown cost.
Continue reading #HB2752 Gives Away Future Revenue Automatically– Bad Idea! (video)
Instead of “Ditat Deus” (God Enriches), Arizona’s motto should be “Tax Cuts R Us.”
Today in the Ways and Means Committee, we heard three tax giveaway bills: HB229 (corporate welfare for utility companies); HB2355 and HB2356 (increases to the 25% charitable tax credit passed in 2019); and HB2358 (increases to the dependent tax credit).
HB2293 exempts the purchase of electric storage units from sales tax (AKA Transaction Privilege Tax or TPT) and from use tax. When I asked Rep. Tim Dunn, the sponsor of the bill, who benefits from this, he said the utility companies benefit from it, but consumers will see a financial benefit because their rates will go down. (Really? When has that ever happened?)
The industry lobbyist made many circular arguments trying to convince us that giving utilities a tax break was good for consumers. Currently, there are eight rate increase cases before the Arizona Corporation Commission (ACC), including rate increase requests from APS and other electric utilities. When I started talking about rate increases and the relationship to infrastructure investment by utility companies, Committee Chair Ben Toma said that I was off-topic. Dunn and the energy lobbyist were the ones that said giving APS, TEP and SRP a tax break was going to lower costs to consumers. I believe that I was totally on topic when I said that these things were likely to raise our rates in the long term, not lower them.
Continue reading Tax Cuts R Us… #WhatCouldGoWrong (video)
“How can Arizona increase education funding?” has been an ongoing question since the Tea Party started hollowing out public education and doling out tax breaks ten years ago.
This week the Legislature is hearing a few education funding bills. The Senate Education Committee is hearing two bills related to education funding on Tuesday, January 28: SCR1002 (Brophy McGee) and SB1059 (S. Allen).
SCR1002 is a ballot referral to extend the Prop 301 “temporary” sales tax for education that was passed by voters during the Great Recession, make it permanent, and raise the sales tax from 0.6 cents on a dollar to 1 cent (on top of what you are paying in sales tax now).
SB1059 dictates how the new money from the ballot initiative should he spent. (There’s a lot of detail in there. Check it out.)
Obviously, we need more money for public education at all levels. My question about SCR1002 is: who should be paying more in taxes? Sales tax (AKA Transaction Privilege tax or TPT) is a tax on the poor. Continuously raising sales tax at multiple levels of government is also not “business friendly” because it artificially raises prices to consumers. When some Arizona cities and towns are bumping up against a 10% sales tax, is it smart to continue to raise sales tax to fund state government? Some cities and towns have rent taxes and sales taxes on food. Those really double down on the poor. With a 10% sales tax rate, people would pay $10 in sales tax on $100 of food. Sales tax is one of the more volatile income streams for our state because it depends on consumer purchasing. When consumers are strapped for cash, their purchases go down, and the states revenue goes down.
Continue reading How Should Arizona Pay for Education? Tax the Rich? Or Tax the Poor? (video)
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)
University High students Rose Long and Grace Proebsting have been interviewing political candidates and others for their podcast on economics entitled Gosh Darn Podcast (GDP). My interview is linked below, but if you go to their Sound Cloud page, you will see interviews with other locals.)
During my interview with them we delved deep into public education, vouchers, charter schools, teacher pay, Red for Ed, tax giveaways and strategies for funding public education. Check out the interview link below.
Are you upset that the Outlaw Dirty Money and Invest In Ed Citizens Initiatives were tossed off of the November ballot by right-wing, activist judges? Many constituents have asked me what they can do about it. Here are three suggestions: vote NO on Prop 126, Prop 305 and Prop 306, and here’s why.
Along with hundreds of Arizonans, my volunteers and I carried petitions through the summer heat to get the Outlaw Dirty Money and Invest In Ed on the ballot. I’m upset that the Arizona Supreme Court tossed both of these initiatives off the ballot– despite their obvious popularity with the voters and despite the gargantuan signature drives that were mounted by the people. The only people who declined to sign these two petitions when I asked them were people who had already signed.
Outlaw Dirty Money was an attempt to bring more transparency to campaign finance laws. Invest In Ed would have raised the income tax on Arizona’s richest residents to pay for stable funding for public education. If you believe in these ideas– campaign finance transparency, getting big money out of politics, sustainable funding for public education, stopping the tax giveaways, and stopping school vouchers– there are three important “no” votes you can make on Nov. 6– No on Prop 126, No on Prop 305 and No on Prop 306.
Continue reading #RedForEd: Don’t Get Mad. Get Even on Nov 6 (video)