As Arizonans, we spend a lot of time lamenting the condition of our state and hoping some bit of good news will come from our Legislature. But yesterday afternoon came with another baffling measure making its way to Gov. Jan Brewer’s desk to be signed into law.
With a $1.2 billion deficit eroding our state’s structure — and its education systems — our legislators passed the largest tax cut in Arizona’s history. We’re not exactly accountants, but we’re pretty sure that when you’re strapped for cash, you shouldn’t turn away revenue.
Overall, the tax cuts will cost the state about $538 million, according to the Joint Legislative Budget Committee. In the next fiscal year, it will cost about $38 million.
This entire tax cut package was touted as a “jobs bill,” crafted to cut corporate taxes and entice businesses into the state.
Yes, Arizonans need jobs. But in this position, tax cuts aren’t the way to do it.
Why would individuals, let alone businesses, relocate to Arizona if the government can’t afford to protect them or educate their children?
Our university and K-12 systems have been financially starved year after year and face the same treatment again in 2012. Legislators still can’t find the money to fund life-saving organ transplants for those on state Medicaid.
To top it all off, controversial laws like Senate Bill 1070 and proposed birthright citizenship reforms are making the state too shaky to look appealing for business.
Legislators may not understand this, but the people of Arizona do.
The people were also unusually supportive of a tax increase last year. In a special election, Arizonans passed a sales tax increase by a nearly 2-to-1 margin and sent elected officials a message. They voted to support education, health care and public safety, even if it meant paying a little more when they go shopping.
This tax cut essentially undermines what voters supported in the special election.
For tax cuts to be effective, the state has to be attractive. Businesses need the entire package — not just tax rates. Businessmen and businesswomen have families that need schooling. If we can’t offer a child a good education or provide an educated work force, do tax rates really matter?
We understand the need to keep taxes low in this downturn, but we already have among the lowest taxes in the nation. According to the Public Policy Institute of New York State, Inc., we have the 38th highest tax rate in the nation.
We’re not saying the state should raise taxes, but we can’t throw money away when we’re already in the hole.
“While other states are raising taxes and doing everything they can to force businesses out of their state, Arizona is putting out the welcome mat,” Senate President Russell Pearce said in a press release after the tax cut’s passage.
Our tax rates may be a welcome mat, but with our education, health care, public safety and immigration policies, it’s set in front of a closed-up shop.
