Borrowing Isn’t the Answer

As abhorrent as I think raising taxes is in this economy, the reasons for allowing voters to decide this issue include these:

1.  More borrowing is even more detrimental to the state long term than raising the sales tax (if voters agree to pass the increase).  AZ. Republic Columnist Robert Robb agrees.  To read his piece,  click here.  

2.  With voter-mandated budget constraints, nobody will be pleased with the choices we will have to make if we have to solve balance the budget through cuts alone.   We have already cut $1.5 billion out of this and last year’s budgets, largely without touching the biggest of the line items:  K-12 education formula spending and health care.  These are almost completely off-limits because of strings tied to stimulus funding.

3.  Propositions that have passed at the ballot prevent the Legislature from reducing or altering another 1/3rd of the general fund.  THIS IS A PROBLEM.  And much needed initiative reforms are not possible in time to help balance this year’s revenue shortfall.

4.  We have a constitutional mandate to balance the budget.

5.  We are already de facto raising taxes by sweeping funds, etc. affecting a comparatively small number Arizona constituencies.  This isn’t right.  The sales tax is the least harmful of tax options and can spread the burden to the most number of people according to what they consume.

6.  Most voters want to weigh in on the question.  Even if they wish to vote a resounding “NO”.

7.       Voters can decide whether to raise the sales tax temporarily to help put a band-aid on our ailing budget.  If they vote it down, we will have a clear go-ahead to cut even further into programs they deeply care about. 

8.   The biggest threat to economic recovery is not acting to fix our anti-business tax and regulatory environment.  The House passed the Jobs Recovery Act last week.  Rather than moving the legislation quickly in the Senate and to the Governor’s desk, the Senate is sitting on it.  We need to act decisively to create jobs now.  Call the Governor and Arizona Senators and ask them to prioritize the Jobs Recovery Act and get Arizona’s economy moving!