The following column is the opinion and analysis of the writer:
I am a rich old geezer, and the product of a public school education. I feel I am qualified to opine on Proposition 208.
Proposition 208 is a referendum on the ballot this November that increases income taxes on single filers making over $250,000 per year and couples making over $500,000 per year. The extra tax revenue will go to public education. Small-business owners will also be subject to this higher tax. I am one of those small business owners, but it’s worse than that — I’m a developer!
So why not sock it to the rich to pay for public education? The rich can afford it, and public schools need it! Well, there’s a catch.
This proposition is not a minor tax increase on the rich. It’s a 77% increase! Arizona will go from a reasonable top state tax rate of 4.5%, to a California-like top state tax rate of 8%. That’s bad karma for our state and city.
Arizona is poised to be the beneficiary of the dystopia of high tax and regulation states like California, Illinois and New York. The job creators in those states are moving tens of thousands of jobs to more business-friendly states. You may have seen the statistics showing the number of Arizona inbound U-Haul trailers far outweighs the outbound trailers. Now is not the time for Arizona to signal to companies thinking of relocating here that it is another high-tax state.
Tucson in particular struggles in the lower quartiles of median family income and annual job growth. For example, the United State’s national median income is $63,179 for 2018. In Tucson, it was $41,625 per year. Austin, Texas enjoys job growth of 2.4% per year. Tucson’s job growth is .40% per year. We can do better and we should do better!
I believe Arizona has yet to see the increased job growth that will come when Californians finally say, “Gee, I’m enjoying the crime and high taxes in San Francisco, but it’s just not hot enough.”
If Prop. 208 passes, it will damage our state’s reputation with the corporate recruiters who influence the relocation process. What states will benefit if we impose these Prop. 208 higher taxes? Texas (no state income tax), Utah (4.95% top state income tax), New Mexico (4.9% top state income tax), Nevada (no state income tax) and Florida (no state income tax).
Hundreds of companies, large and small, are relocating from high-tax states. They will not be moving to Arizona if we start taxing people and businesses at the same high tax rates of the states that they are fleeing. I think a no vote on Proposition 208 is the right thing to do. Public schools need more public funding, but there are ways to fund our schools that will be less damaging to Arizona’s future economic growth. Plus, I’ll get to keep my polo ponies!
