Sunday, April 6, 2014

OK. Mr. Big Mouth Liberal, What would you do?

Coming here many years ago from Oregon, a state with NO sales tax and a law against pumping your own gas it is tough to adjust. Visited Oregon a few years back and went to fill the car with gas. You know, you drive up to the pump get out and lift the noozle, punch in the grade and fill. Oh, my gosh! The end of the world, the station attendance comings rushing out. "you can't do that!", NO Self-service! Look at a new shirt, $32, wait add 9% sales tax $2.88 total cost $34.88 here in many places in Arizona. In no sales tax Oregon, unless there is a hidden discount for being senior the marked price is what you will pay at the cash register. So a friend says, alright Mr. Liberal-Progressive big mouth where would you get the money to run government, schools and such? Absolutely, don't wail about the regressive sales tax unless you can come up with something different. I always like to point out, catching the winter visitors with a few months sales tax that the rest of us pay all year is a stupid reason to punish us. When people, older, retired probably more affluent than most of us year round residents come to Arizona where do they spend the most of their dollars? Food and drugs are exempt from sales taxes, they aren't making big ticket purchases cars, furniture, household goods, clothes or gifts and presents. No, restaurants, entertainment, golf fees, keeping the autos running and what else? You know like the things around home that wear out and have to be replaced every few months or years. Even if our winter visitors, you know "snowbirds" have second homes here how often to they replace things? Services on the A/C, plumbing, minor repairs all exempt from taxation except for parts and materials. No sales tax revenue there. Here is another point driven home to me just a couple years ago. Come August and we got to get the kids back to school. Amazing they have grown, they have been plenty rough on their clothes out of school this year. Alright, shoes, and few new clothes plus the sale taxes add up for one child, but times that by three! No wonder some states offer "sales tax vacation" right before schools start. They have come to realize how much it hurts the pocket book for families. Folks that's the way it is year round for most of us. Low income and fixed income families have choices to make and it's not just which school to enroll the kids. Well, we pretty much outlined the problem. What about walking toward some solutions? Wait one more thing, throw in something about the increased costs of roads and declining gas tax revenues. We all have to get from point A to point B and low cost public transportation isn't perfected all over yet. Right nothing progressive about the sales tax on gasoline. Fees for government services are just another sales tax with a different name, auto registrations, cigarette taxes, liquor tax, gas taxes, airport fees, car licenses, drivers license, etc. All just a different dinner jacket, out to eat your finances up. Regressive Tax A tax with a rate that decreases as the taxpayer's income increases. The result of a regressive tax is that the lower-income taxpayer pays a larger percentage of his or her income in taxes than does the higher-income taxpayer. The opposite of the regressive tax is the progressive tax. With progressive taxes, such as the federal Income Tax, the effective tax rates increase as the taxpayer's income increases. Nothing Flat about the Flat Tax except it gives a nice regressive tax break to wealthy incomes. Can we agree, Government Services costs should be based on not just on the use of services, "use taxes/fees" but shared equally based on a progressive ability to pay concept such as income taxes? What about roads, police, fire, and other services related to property? Education! Such an important role in the provision of government services it is locked into the Arizona (and most other states) Constitution. Foremost education provides for value, without education incomes dimminish, employable population decreases, jobs bypass, crime rate soar and all other government costs increase. Providing for educations across the state equally should be our goal. "No child left behind" a lofty idea but hard and expensive to guarantee. Early childhood education, proven in its value, up to community college associate degree programs setting up input into the job market a more skilled work force. How to fund education, what levels of taxation and which taxes? On the state level revenues from income and sales taxes are broad based shared by everyone. A sound system of per pupil served provides a beginning base of revenue for schools. State funds for education has not been the sole source, local property taxes have also played a major role in funding education.

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