Monday, April 28, 2008

Taxes - one to support, one to examine carefully

I know, I know, I am supposed to be a taxer and a spender, being that I am a Democrat and a liberal and all, or so they say. But I have grave concerns about how much our sales taxes in Arizona have increased in recent years, since sales taxes tend to hit the poorest the hardest. We tax goods, like clothing, diapers, and back to school supplies, but do not tax services, such as poodle grooming or spa visits. As we are now paying a combined state and local 8.3% on our purchases in Phoenix, I am hesitant to support any new sales taxes.

One sales tax deserves our support. That is the Phoenix Parks Preserve Initiative, being voted on Tuesday, May 20 (click here to get a vote by mail ballot). This continues for 30 years an existing 0.1% sales tax (in other words, your taxes won't change if it passes) in the City of Phoenix to fund parks, recreation, and nature preserves. Just as it was critical for past city leaders to preserve the areas now known as North Mountain, South Mountain, and Piestewa Peak, it is likewise important that we not turn hilltops and mountainsides in far north Phoenix into a sea of tile roofs. This initiative preserves open space, allows the City to develop new parks all over town, adds shade and other amenities to existing parks (very important given how much warmer our night time temperatures are compared to a couple generations ago...when there were fewer people and less cement), and expands youth activities during the critical after school hours when they may otherwise get into trouble.

One possible statewide tax increase that may greet you on the November ballot is being put together by the TIME Coalition, a group of business and community leaders working to address the fact that, if Arizona does not raise revenues for transportation, there will be no money left to build new highways in most of this state by 2015, but only enough to maintain current highways. Kudos to our business community for addressing this. However, with Governor Napolitano's veto of a property tax cut that will largely benefit business, the business community has vowed to take that property tax cut to the voters this fall as well. How will it look for the same leaders who are advocating for one tax cut (for themselves, mostly) on the ballot to be advocating at the same time for a tax increase (paid by you, the consumer)? I think many voters will vote both down, and perhaps that is the best option. The tranportation plan that will likely be on the ballot this fall will have $42 billion in transportation project all over Arizona over the next 30 years. Fortunately, it will include a chunk for mass transit (expanded bus rapid transit in various cities, as well as a train between Phoenix and Tucson, and commuter rail in both cities), but 58% still goes for highways. And all this would be financed by a 1.0% sales tax, meaning you would now be paying 9.3% in Phoenix, and similar rates elsewhere. Since Arizona has not raised the gasoline tax, which is one of our main sources of highway funding, since the early 1990's, it is time to at least let that tax keep up with inflation and the cost of building roads. And those who choose to live close to their work will not only contribute less to air pollution, traffic congestion, and climate change, but won't be hit as hard in the pocket book for their responsible lifestyle. I will be analyzing the proposal as it evolves, and will let you know where I stand. Let's meet our state's transportation needs, and take away the time tax of being stuck in traffic. But let's not open up pristine areas of the state that should be preserved as God made them, let's move people around in an efficient and cost effective way, and let's make sure the responsibility for paying for it is shared equally.

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