Working for a living is hard. You have to get out of bed early, get dressed… maybe even put wear a silly uniform that you were required to purchase… drop the kids off at school, drive around to find parking or sit on a bench waiting for the bus, rush to work to be on time, and repeat in reverse after work a few hours later. If you are forced to work multiple jobs to make ends meet, the complexity and aggravation of daily life grow exponentially … one grueling day after another.
Decades ago, Wall Street bankers learned that making money off of other people by charging fees for absolutely everything their accountants can think of… and then charging late fees upon those fees… is an fast route to Easy Street. Banks and other lending institutions are masters at making money from fees (as opposed to real work).
The Fee Game is now pervasive across Corporate America. As a result, We the People are getting fleeced at every turn. People complain about high taxes from the government, while Corporate America is slipping billions of dollars out of our pockets in service fees, administrative fees, application fees, late fees, nonpayment fees, stop payment fees, online payment fees, nonrefundable deposits, usurious interest rates, junk health insurance, unaffordable health insurance premiums, co-pays, coinsurance, and the list goes on. It’s no wonder people are strapped for cash. We’re being nickel and dimed into bankruptcy by Corporate America, while Congress and state Legislatures bend over backwards to be “business friendly.” For more about The Fee Game and how lucrative it is… read on…
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.
The cornerstone of my economic reform ideas is establishment of public banking at the state, county, and/or municipal levels.
In a nutshell, public banking advocates believe that austerity is a lie and that budget-cutting and layoffs by governments is unnecessary and harmful to citizens. There is plenty of money. The problem is that our taxpayer funds are held in too-big-to-fail banks on Wall Street and invested for the benefit of the banks’ shareholders– instead of being held here in Arizona and invested for the benefit of the citizens of Arizona. Public banks invest on Main Street for the public good — rather than allowing OUR MONEY to be gambled (and potentially lost… again) on Wall Street.
There are many ways a public bank could be constituted. For example, in my speech to the LD9 precinct committee members, I suggested taking 10% of the state’s surplus rainy day funds and using that to establish an infrastructure bank. This state bank could self-fund much needed improvements and new roads to make the state more competitive and easier to traverse. It also could lend money to counties and cities to build their projects. In turn, the state would make a modest interest rate on the loans.
Creation of a state public infrastructure bank would address several economic problems in one fell swoop…