Friday, April 17, 2015

Morning Financial Edition of the SkyIslandScriber

First up is Tim Steller's critique in the Daily Star of Dicey Ducey (Il Duce) giving more tax breaks to corporations. Duce vetoed a bill that would have exempted some businesses from back taxes they owed.

He vetoed a bill that would have exempted crop dusters and charter-tour aircraft from the state sales tax.

OK. Good thing, right? You don't want to lose revenue in these tight times when the state cannot find funds for educating its children.

Then he instructed the Arizona Department of Revenue not to enforce sales tax on those items from now forward, giving the Legislature time to fix problems with the bill.

Wait! What? Now he's reversed course? Not really. Duce just wants the azleg to come back with a different version of that bill. Read on.

"At the end of the day, the governor’s view on this is that the business community and the ag community have been operating under one set of rules for 17 years," he said. "This change of policy amounts to a tax increase on them. It’s impactful, and the governor has stated over and over that he doesn’t want to raise taxes."

And that thinking is at the heart of crAZy's financial bind. On Duce's view, even closing tax loopholes would be an increase in taxes, so AZ will NEVER get out of its fiscal hole so long as GOPlins run the show.

I disagree with this interpretation, of course. What it looks like to me is a form of crony capitalism in which the rules are not applied equally to every company or business sector.

And the upshot is that the rest of the taxpayers will foot the bill for those who have the money or political pull to get their individual tax burden shrunk.

And that includes those Rs who voted for the GOPlins.


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