Democrats trying to make Governor’s plan look good.

Raising taxes is a perilous proposition for lawmakers, who must balance their states’ budgets every year. Not only do they face political heat for increasing financial burdens during the recession, but added taxes risk worsening their states’ economic problems by, for example, further hobbling consumer spending.  WSJ 4/9/09

One explicit argument for the $787 billion “stimulus” bill was to help states avoid these tax increases that even Keynesians understand are contractionary. Instead, the state politicians are pocketing the federal cash to maintain spending, and raising taxes anyway. Just another spend-and-tax bait and switch.   WSJ 4/11/09

If Governor Brewer is steamed up over the legislature’s refusal to consider her tax increase, the state Democrats certainly didn’t wish to be out done.

The state’s minority party, in a bid to remain a minority, proposes a wealth redistribution scheme which will raise state income taxes on couples making $250,000 or more.  Essentially, taking from the productive and giving to the non-productive.  Smart move!

This is a favorite of mine; suspending tax breaks for motion picture and television productions.  Why Arizona’s small rural communities don’t need those Hollywood types coming and dumping buckets of cash on their starving municipal coffers.  This is sure to be a hit with the Arizona League of Cities and Towns.

And I thought the Democrats supported education?  Veritas was wrong, the minority party proposes suspending tax credits for donations made to private schools and to public schools.  So much for the Pro-Choice crowd eh?  Guess there’s No-Choice in education where minority children might benefit.

This has got to be the crown jewel of the Democrats proposal:  Their plan allows the property tax equalization rate to come back. The property tax is on a temporary repeal, however without renewal action will return to further dampen any chance of a recovery in that sector.

And here’s how far they’ll go to push their Climate Change Agenda:  Impose new taxes on utilities for using nonrenewable energy sources!  So traditional energy sources like coal, nuclear, and natural gas will be taxed while hot air… er, I mean wind energy enjoys a further free ride.  You know, the utilities will simply pass through those taxes to the ratepayers.  This is a sure fire way to stimulate Arizona’s economy.

And for the dumbest new tax idea ever, extending the state sales tax to now-exempt service warranties and contracts.  You know, that service contract you buy when you got your new television?  I suppose the idea here is to force you to buy a new product when the old one craps out 90 days after you purchased it.  Pretty clever of them isn’t it?

I’ve got to ask the questions, is the Governor listening to her own party or the Democrats … and are the Democrats trying to make the Governor’s plan look good?  Did anyone read any of the excellent analysis put out by the Goldwater Institute (or any other reputable economic think tank)?

You don’t tax your way out of a recession (unless you wish to extend the hard times by a couple of more years).  Voters will remember come 2012.


Comments

  1. Greg Patterson at espressopundit posted this afternoon that the Dems have all but abandoned their budget proposal.
    So the Dems have given up on huge tax increases. The Republicans have given up on nothing but cuts. It will be interesting to see where the middle ends up being.

  2. Time For a Change says

    I’m glad that the Democrats proposed what they did. It was nothing but enormous tax increases, coupled with continued unsustainable rates of spending. It very clearly defined the differences between the two parties’ bases and what they stand for.

  3. Not for nothing, but you do realize that the biggest push to get rid of the Movie Tax Credit is coming from Republicans, right? It’s because it doesn’t acually do what it is supposed to do. There was a big hearing on it in the Senate earlier this year. Check it out.

  4. The democrats are looking wishy-washy since they are now backing down from this plan which at least has enough sense to try to pay for state government through taxes instead of borrowing. The much larger question us where is the GOP budget and when are they going to vote on it? What are they waiting for?

  5. Veritas Vincit says

    Todd, The Dems backed off because they wish to be re-elected in the future and their tax and spend plan would be the kiss of death.

    The Governor needs to get new advisers. The Jane Dee Hull group is running her down the same garden path they ran Jane.

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