Proposition 204 Hurts Arizona’s Middle Class and Low Income Families

 

Proposition 204 disproportionately hurts Arizona’s middle class and low income families

What is a regressive tax? Simply, if a taxes’ burden falls more on the middle class or the poor than those who are wealthy, the tax is considered regressive or disproportionately punitive on those who can least afford it.

Proposition 204 is the perfect example of a regressive tax, targeting those Arizona families that can least afford to pay more for the goods that they need. Proposition 204 makes Arizona’s “temporary” sales tax “permanent,” making Arizona the second highest sales taxed state in America. Incredibly, the only state that has a higher sales tax is Tennessee, a state with no income tax.

Proposition 204 is marketed for education, but the revenue raised is not required to go to teachers or the classroom. In fact, the measure is a grab bag for special interest groups, containing over $100 million dollars for public transit and roads. So, while Proposition 204 contains money for politically connected special interest groups, the revenue raised is coming from those who cannot afford to be politically connected.

By their very nature, sales taxes are regressive because expenses such as clothing, shelter, food, and other household goods tend to be the primary costs of a middle class and low income households’ budget.

That’s why opposition to Proposition 204 is coming from all sides, from those who know it is bad for business and job creation and from those who know it will hurt poor Arizona families. Why are we “permanently” raising taxes on those people who can least afford it? Why are we “permanently” increasing taxes during a time when Arizona’s unemployment rate is still high? Why are we raising taxes under the auspices of education, but sending that revenue to groups not related to education?

There is nothing more important than the education of our children. Arizonans want a bright future for their kids and improving education is an important priority. But, we need real education reforms, not permanently mandated tax increases devoid of independent oversight or accountability.

Proposition 204 is bad for Arizona middle class and low income families, it is bad for teachers, and it is bad for Arizona’s economy. We need to Vote No on Proposition 204.

To learn more about Proposition 204, please visit our Website or our Facebook Page for more information.

There is nothing more important than the education of our children. That is why we oppose Proposition 204, a broken promise to make Arizona’s temporary tax increase “permanent.” Proposition 204 brings a permanent, billion-dollar-per-year price tag to Arizona families. While raising your taxes, Proposition 204 provides no real reform and contains no real accountability.

Arizonans want a bright future for their kids and improving education is an important priority. Although wanting to improve education, throwing money at the problem is not the answer. We need real education reforms, not permanently mandated tax increases devoid of independent oversight.

Additionally, Proposition 204 was written by special interests for special interests.

While Arizonans continue to struggle, do we really want to continue to raise their tax burden? Are we willing to have the second highest sales tax in America?

Arizona needs real education reform and jobs. Proposition 204 will make Arizona less competitive while providing very little benefit to Arizona’s education system.

Proposition 204 is too taxing on Arizona families, Vote No on 204.

 

Arizona Proposition 204 is Bad Policy

Arizona Proposition 204

Arizona Proposition 204 is bad policy. A close look at the fine print in Proposition 204 reveals the true purpose of the initiative.

The measure creates 14 separate carve outs for special interest groups, creating a grab bag of taxpayer funded giveaways. While special interests are getting enriched, Arizona families will see a $1 Billion dollar PERMANENT tax increase. If passed, Arizona will become the second highest sales tax state in America, just behind Tennessee, a state with no income tax.

But, how does Proposition 204 reward politically connected groups? The device is a list of “designated funds” that would dictate how the money is spent. Students and teachers in the classroom are barely in the equation.

Arizonans need only to read the ballot language to see that Prop 204 is more about “pet projects” and less about improving the state’s education system.

CHAPTER 28

STATE INFRASTRUCTURE FUNDING 
ARTICLE 1. ADDITIONAL FUNDING FOR STATE INFRASTRUCTURE

28-9301. State infrastructure fund

A. THE STATE INFRASTRUCTURE FUND IS ESTABLISHED CONSISTING OF LEGISLATIVE APPROPRIATIONS, FEDERAL MONIES, PRIVATE GRANTS, GIFTS, CONTRIBUTIONS, DEVISES AND MONIES DEPOSITED IN THE FUND PURSUANT TO SECTION 42- 5029.02. MONIES IN THE FUND ARE CONTINUOUSLY APPROPRIATED TO THE DEPARTMENT FOR THE PURPOSES PRESCRIBED IN THIS SECTION AND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS.

That’s why Doug Ducey, Arizona’s State Treasurer said, “Prop 204 is genuinely bad policy. It makes a permanent, billion-dollar-a-year spending commitment; it provides for no oversight as to how the money is spent; and it makes no reforms that actually improve accountability or the quality of education. Prop 204 amounts to just throwing money at a problem and hoping that somehow, magically, things will just get better.”

Out of the $1 billion collected every year, only $125 million would go to the state’s general fund for “inflation adjustments” for K-12 education. Then the spending begins to disburse $875 million to the initiative’s pet projects through the designated funds.

  • The largest share, $500 million, goes to something called the quality education and performance fund to assist K-12 schools with “assessment and accountability” rules. Sounds good right? But the ballot language specifically uses the word “may use the monies.” There is no guarantee that they will be used effectively, again no oversight or accountability, just words on a page.
  • The state infrastructure fund gets $100 million for road-building and public transportation.
  • The family stability and self-sufficiency fund receives $100 million to support families living below the poverty level.

That takes care of $700 million projected for the designated funds. The first fund feeds bureaucratic record keeping. The second supports contractors and transportation subsidies. The third funds a social services program outside the purview of education.

The rest of the money — $175 million – goes to fund areas that again lack accountability and oversight.

To fund the $1 billion a year initiative, taxpayers will be forced to pay a one-cent increase in the state’s sales tax rate. The initiative forbids the Governor and State Legislature from any participation in spending the funds.

In fact, Prop 204 prevents the Auditor General, the Joint Legislative Budget Committee or the Governor’s Office from doing any performance audits on how the money raised is to be spent. So much for sunshine and accountability.

If Arizona wants long-term education reform, Proposition 204 is not the answer. Proposition 204 is just too taxing on Arizona families.

To learn more, please visit VoteNoOn204.com or Vote No on 204’s Facebook Page.