Breaking the silence--AZ's dumb sales tax proposal
I've been on a self-imposed moratorium on the reading, listening and discussing financial or political news for more than a year. Last year, I let lapse a 28-year subscription to the Wall Street Journal. Ditto for the 26-year subscription to BusinessWeek.
I was sick of the spin and the hype that always accompany a major election. I used to tolerate it back in the day when the idiocy lasted only a blessed few months. But now it drones on for years. For the sake of my sanity, I just had to take a break.
So what has forced me to break the silence? I'm not sure. Maybe it's just because you can't keep a libertarian quiet for very long.
I was listening to NPR's Morning Edition on the drive to the office this morning. That's not a morning ritual--I just happened to be flipping through the stations. I heard the reporter or "correspondent" as I believe NPR prefers to call its minions talk about the proposed penny sales tax increase.
A penny.
Only a penny.
Who could object to that? It's only a penny.
Of course, NPR isn't the only one who's calling this a penny tax. Local radio hosts, newspaper reporters, bloggers, etc. have picked up on the penny pitch for higher taxes launching this into a slick pro-tax campaign worthy of Madison Avenue. Or the Washington Beltway.
But it's not "just a penny."
It's a 17.8% increase. (For those of you without a grasp of math, and that's the vast majority of people who yap about financial news, a penny increase on top of the current 5.6 penny state tax is an increase of 17.8%. That's 1 divided by 5.6.)
Of all the possible tax proposals that could be on the table, a sales tax is certainly more palatable (and fair) than others on the menu. But AZ must learn that you can't tax yourself into prosperity. If there's a shortfall in tax revenue, then you better cut your budget. That's what people have to do. That's what government should do.
The good news is that lawmakers are only determining whether or not the tax increase lands on the November ballot. If it does, I can only hope that 'zonans have the good sense to vote it down.
The views expressed here are mine and probably don't reflect those of too many other people.
I was sick of the spin and the hype that always accompany a major election. I used to tolerate it back in the day when the idiocy lasted only a blessed few months. But now it drones on for years. For the sake of my sanity, I just had to take a break.
So what has forced me to break the silence? I'm not sure. Maybe it's just because you can't keep a libertarian quiet for very long.
I was listening to NPR's Morning Edition on the drive to the office this morning. That's not a morning ritual--I just happened to be flipping through the stations. I heard the reporter or "correspondent" as I believe NPR prefers to call its minions talk about the proposed penny sales tax increase.
A penny.
Only a penny.
Who could object to that? It's only a penny.
Of course, NPR isn't the only one who's calling this a penny tax. Local radio hosts, newspaper reporters, bloggers, etc. have picked up on the penny pitch for higher taxes launching this into a slick pro-tax campaign worthy of Madison Avenue. Or the Washington Beltway.
But it's not "just a penny."
It's a 17.8% increase. (For those of you without a grasp of math, and that's the vast majority of people who yap about financial news, a penny increase on top of the current 5.6 penny state tax is an increase of 17.8%. That's 1 divided by 5.6.)
Of all the possible tax proposals that could be on the table, a sales tax is certainly more palatable (and fair) than others on the menu. But AZ must learn that you can't tax yourself into prosperity. If there's a shortfall in tax revenue, then you better cut your budget. That's what people have to do. That's what government should do.
The good news is that lawmakers are only determining whether or not the tax increase lands on the November ballot. If it does, I can only hope that 'zonans have the good sense to vote it down.
The views expressed here are mine and probably don't reflect those of too many other people.
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