Tax Reform

Americans are a hard-working bunch and should keep what they earn. Our ideas for tax reform reduce the burden of taxes while ensuring governments have the resources to focus on core responsibilities.

<p>Americans are a hard-working bunch and should keep what they earn. Our ideas for tax reform reduce the burden of taxes while ensuring governments have the resources to focus on core responsibilities. </p>

All the ideas on the table for resolving the 2004 budget crisis share a fatal flaw-none of them can gain a majority of votes in the Legislature.

Democrats generally believe that permanent budget reductions would be punitive for agencies that have already suffered cuts during the crisis. They fear excessive government job loss and the inability to administer agency services.

Arizona Governor Janet Napolitano and Sen. Carolyn Allen (R-Scottsdale) recently distributed to the press a study released in the February issue of Governing Magazine. Titled "The Way We Tax," the study rates state tax systems for adequacy and fairness on a scale from one to four stars.

Our Opinion

As Arizona's political leaders try to cope with shrinking tax revenues there will be inevitable pleas from special interest groups to increase taxes on the state's residents rather than cut spending.

Some may even argue that Arizonans can afford to pay more in taxes, an idea that would seem to be supported by a recent study released by Arizona State University showing that Arizona's tax burden has fallen since 1972.

The business community is split over a referendum that would hike state cigarette taxes.

Proposition 303 would increase the levy on cigarettes from 58 cents per pack to $1.18 per pack. It would be one of the highest such taxes in the nation and put the state in the company of Massachusetts, New Jersey, and New York.

If approved by voters in November, the measure would generate an additional $149 million in revenue annually. The cash would go toward various health care and medical initiatives including emergency for the poor and public health education.

The cost of rousing the U.S. economy from its near-coma could escalate dramatically if the slow-motion trauma team in Congress foot-drags until next year.

Phoenix, AZ -- Goldwater Institute economist Stephen Slivinski responded today to a proposal by Senate President Randall Gnant (R-Scottsdale) to create a new, statewide property tax to help cover an estimated $240 million of the budget deficit. Says Slivinski, "The Gnant tax will retard growth, punish homeowners, and do nothing to address the problem at the root of the deficit.

Arizona's Legislature just finished the special session adjusting spending to revenue in order to fix a deficit for 2002 that was about $800 million short and is now attacking a 2003 deficit of about $1 billion. This budget crisis is a product of irresponsible and out-of-control government spending during previous years.

Phoenix, AZ-If you are an Arizona taxpayer and have a professional prepare your taxes, beware.  In an effort to save you five dollars, the accountant may have signed you up to support the state's Clean Elections scheme.

Arizona's state government is facing a fiscal crisis. Over the next two years the state is projected to spend $1.6 billion more than it can expect to take in from taxes.

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