Arizona Proposition 204 raises taxes during a recession
The permanent sales tax rate increase under Proposition 204 defies logic by imposing a tax hike in the midst of the worst economic recovery in decades. Proposition 204 would mandate a permanent one-cent increase in the state sales tax rate. At 6.6 percent, along with county and local sales taxes, Arizona would have the second highest sales tax rate in the nation.
Arizona took a serious hit following the crash of 2008. Unemployment topped 10 percent. Home foreclosures soared. Businesses across the state closed their doors.
We are making progress to restore the state’s economy, but families and businesses are just beginning to recover. The recession lingers for far too many Arizonans. Unemployment stands at 8.2 percent in Arizona. Foreclosures continue. Family take home pay is down. Meanwhile, the cost of everything from gas to food remains high.
Proposition 204 would increase the sales tax 18 percent on every consumer purchase. Families would suffer most from this regressive tax. Businesses would lose customers, forcing them to cut jobs.
We should cut taxes to spur economic recovery. The Proposition 204 sales tax increase is the wrong policy at the wrong time.
Latest posts by Graydon Holt (see all)
- Arizona Proposition 204 raises taxes during a recession - November 4, 2012
- Wide-ranging coalition opposes Prop 204 - November 4, 2012
- Arizona’s business community is united against Prop 204 - November 3, 2012