Should the Arizona Legislature help Microsoft pay its APS bills?
Tuesday was a light day at the Capital. There was no floor action, but I had time to catch up with colleagues and sign some of their bills. I wanted to tell you about the conversation I had with two Microsoft lobbyists about the tax break that Microsoft wants.
You may remember my blog post on Powers For The People (back in December) about the tax review committee that I was on, due to my membership on the Ways and Means Committee. One of the income tax credits that we reviewed was for an Apple international data center to be built with renewable energy in Mesa. At the time, Apple was offered a TPT (sales tax) break also, but the committee reviewed only the income tax break.
The lobbyists were in my office because Microsoft wants the TPT tax break that was offered to Apple. I told them that I really don’t support tax giveaways to multinational corporations. ￼Period. I don’t support any tax giveaways when ~68% of Arizona women aren’t getting first trimester prenatal care, and that is contributing to AHCCCS wasting $2-4 billion dollars on premature births (Not to mention the long-term health effects of prematurity.) When thousands of Arizona mothers and their children are living in poverty with food and housing insecurity, why would I prioritize a tax break for one of the most successful corporations in the US?
The lobbyist told me that the reason Microsoft needed a TPT tax break because “electricity is too expensive in the state of Arizona.” Microsoft doesn’t want to pay sales tax on electricity for this giant data center. International data centers take a use a lot of electricity because it is a building full of servers and cooled to ~65 degrees. This particular tax break is related to data centers built with renewable (solar) energy, which will already lower their energy cost significantly.
Continue reading Microsoft Wants a Sales Tax Break Because ‘Electricity Is Too Expensive in Arizona’ (video)
Monday, January 13, 2020, was opening day at the Arizona Legislature.
Opening day is always fun and full of political drama because there are protests, press conferences with multiple Progressive groups (labor unions, Planned Parenthood, teachers, and others), the House and Senate Democratic Caucus Press Conference, and a big party with great food hosted by House Dems on the 3rd floor.
Southern Arizona unionists filled two buses to come to the Capitol on Monday. Striking ASARCO miners were out in force. Recently, I have been seeing these guys on the strike line down at the ASARCO Mission Unit, when I am wearing a T-shirt, boots and jeans. One of them did a double take when he saw me in a dress, stockings, short high heels, and my power pearls at the Legislature.
Continue reading On Opening Day of #AZLeg, Right-Wing Ideology & the Peoples’ Response on Display (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)
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.
Continue reading #AZLeg Hears Competing Bills on Vaping (video)
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)
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)
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)
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)