GOP governor candidates debate ending Arizona income tax
Source: Arizona Republic
Three candidates vying to become Arizona's next governor said Friday that, if elected, they would do away with state income taxes, the source of nearly half of the $9 billion that flows into state coffers each year.
The remarks at a gubernatorial forum hosted by the Arizona We Want Institute revealed contrasting plans for the state's fiscal future.
Seven Republicans are seeking their party's nomination: Secretary of State Ken Bennett, state Treasurer Doug Ducey, former Go Daddy executive Christine Jones, former Mesa Mayor Scott Smith, former California Rep. Frank Riggs, state Sen. Al Melvin and former Maricopa County Attorney Andrew Thomas.
Read more: http://www.azcentral.com/story/news/arizona/politics/2014/06/07/arizona-income-tax-debate-end/10119357/
warrior1
(12,325 posts)stupid republicans
DFW
(54,403 posts)There aren't many States that can forgo half the revenue they currently take in and still stay solvent.
Oops. Arizona is one of them.
Oh, well, who needs schools, police and roads, anyway?
ThoughtCriminal
(14,047 posts)They want to shift more of the burden to the poor and lower middle class.
has the most regressive legislature in the country !
awoke_in_2003
(34,582 posts)to make up the difference they will have to raise sales and or property taxes, both of which will hit the poor the hardest.
Fred Sanders
(23,946 posts)jmowreader
(50,559 posts)They're claiming $1 billion can come from imposing the sales tax on everything that isn't currently taxable, and another $1 billion by raising the rate one cent.
The other $2.5 billion is going to come from "policies that will quickly grow Arizona's economy." Where have we heard this before?
Here's reality: Unless their "policies that will quickly grow Arizona's economy" include converting every empty big-box store in the state to a casino, imposing an outrageous room and meals tax, and hacking the air traffic control system so planeloads of gamblers land in Phoenix rather than Vegas...or drilling 500 more oil wells and taxing the fuck out of them..the only way they can make up a $4.5 billion shortfall is with property taxes.
cosmicone
(11,014 posts)so that would be a non-starter!
jmowreader
(50,559 posts)The only thing I can imagine, is this is the most extreme "starve the beast" plan yet tried: they're going to reduce revenues 50 percent then use spending cuts to balance the budget.
The problem with this theory is simple: there's not $4.5 billion worth of excess spending. The only possible way to pull it off is to fund the schools exclusively through local levies.
SoapBox
(18,791 posts)But only those over $10!
kelliekat44
(7,759 posts)the wealthy will be able to buy it.
truthisfreedom
(23,148 posts)for taxes without raising the overall price. My guess is that the price will actually drop.
Zorra
(27,670 posts)Now I live in AZ, and we do have a state income tax here, and I totally think it sucks in comparison. Arizona's state sales tax is 5.6%, only 1 percentage point lower than Washington's 6.5% sales tax.
6. Washingtonin comparison to
Tax collections per capita: $2,566 (19th highest)
State revenue per capita: $5,156 (20th lowest)
State spending per capita: $6,735 (24th highest)
Federal aid as a % of revenue: 31.3% (10th lowest)
State sales tax rate: 6.50% (10th highest)
With no income tax, Washington relied heavily on its 6.5% sales tax, the nation's 10th highest rate. This tactic has worked in the past: in 2011 the state raised $1,559 in sales tax revenue per resident, more than nearly all other states. This accounted for the majority of the $2,566 in taxes collected by the state that year. Localities often depend on the sales tax for revenue as well: the average local sales tax paid by a Washington resident is nearly 2.4%, bringing the total sales tax rate to nearly 9% fourth highest in the United States. Although sales taxes are often considered to be especially costly for the poor, Washington makes up for this by having the nation's highest minimum wage, at $9.19 an hour. It is also one of the nation's stronger states for education spending, at $2,180 per capita in 2011.
http://www.usatoday.com/story/money/personalfinance/2013/03/23/states-income-tax/2002991/
If a Democratic candidate proposed eliminating the personal income tax, (but not the corporate income tax) that would make me think about voting her/him in the primary.
awoke_in_2003
(34,582 posts)which hurts the poor a lot more.
jmowreader
(50,559 posts)They tax gross receipts, not profits - and it's really complex to figure out. They also have a property tax that takes a chunk out of your ass every year.
SoapBox
(18,791 posts)Money is needed period.
So it comes down to where the money comes from.
1StrongBlackMan
(31,849 posts)even if they kept (or even raised the corporate income tax), I'd consider them most unserious ... the math just doesn't work without raising the sales tax (which hurts the working classes) and a raising of property taxes at the county level (which hurts the working classes and burdens the housing industry) and the introduction of a host of schemes that shift expenses from the state to the local level ... all of which hurts everyone.
Besides ... per the Tax Foundation, Washingtonians paid about 27% more per capita, than their Arizonan brethren/sistern ($4,366 vs $3,194, per capita).
QED
(2,747 posts)graegoyle
(532 posts)blkmusclmachine
(16,149 posts)LarryNM
(493 posts)and give the 99% a choice between lesser Benefits and Services or higher Sales and Property Taxes. More benefits for the oligarchs and more pain for the rest. All sorts of Lies and Propaganda will be used to Demonize and Marginalize any opposed to this. Of course, such societies are not sustainable and eventually cease to exist.
QED
(2,747 posts)There is an article about Arizona's job recovery lagging behind the rest of the nation.
AZ Legislature: Trying to follow Kansas's example but expecting different results.
atreides1
(16,079 posts)Thomas was the subject of an FBI investigation regarding abuse of power and unethical behavior while county attorney. On April 10, 2012, Thomas was disbarred by a disciplinary panel of the Arizona State Supreme Court for his actions as county attorney.
This was the County Attorney who assisted Arpaio in going after a several Superior Court judges and the Maricopa County Board of Supervisors.