5.13.2009

No New Tax Pledge -- Sort of...

Childish games of a legislature filled with incompetent leaders has been the cause of incredible discomfort for many communities in Arizona. Today, their actions to sweep funds from school districts who have wisely put away extra cash for tough economic times marks just their next disrespectful act. This legally allowable savings account was responsible for saving jobs and providing resources for students when the very same folks cut school district budgets by millions earlier this year.

Here's the problem for the Republicans that voted with their Party "Leadership" on the legislation; this action will increase property taxes for homeowners. That's right, the folks who took the "No New Tax Pledge" earlier this year have now just violated their oath by passing this law.

Here's how it works: Districts go to the voters to increase property taxes to pay for buildings, new technology, and even higher salaries for employees. When the voters approve these taxes sometimes the district gets more cash than they are constitutionally allowed to spend and they save it for the next year just in case the legislature cuts their budget. If the legislature doesn't cut their budget the money has to be returned to homeowners through a percentage reduction to their tax rate. Guess who's not getting that reduction this year? That's right, you got...you!!!

Now, you know me, I am all for good old fasioned tax increases that fund state government services. I understand their importance in our society and recognize my responsibility to pay taxes for the greater good. But, this sort of under-handed, back-door taxation will leave voters puzzled as to how their property taxes were increased without any notification.

If these legislators don't mind increasing taxes I've got a few I'd like to suggest. How about rolling back tax breaks for corporations who don't employ any Arizona workers? What about rolling back 10% income tax breaks for wealthy Arizonans earning more than $250K per year? And, how about taxing luxuries such as pet grooming and cart fees at your local golf course? These together could increase state revenue by nearly $2 billion.

Go to www.arizonabudgetcoalition.org to learn more about other options to solve the state's deficit.

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