House Democrats Propose More Than $1 Billion Dollars in Tax Increases

During the worst economic crisis in Arizona’s history, members of the House minority caucus have proposed several measures to increase taxes on items crucial to the lives of every Arizonan. They have introduced legislation that would increase taxes on electricity, food and gas.

“I would like to thank Ways and Means Chairman Rick Murphy and Commerce Chair Michelle Reagan for not letting these harmful pieces of legislation see the light of day. Especially at a time when Arizonans need more help…not more taxes,” House Majority Leader John McComish said.

On the heels of recent utility rate increases as high as 17 percent in some parts of the state, Representative Steve Farley, Minority Whip Chad Campbell and Representatives Tom Chabin and Nancy Young Wright proposed HB2490, which increases utility rates on residential and business customers again. Increasing utility rates at a time when requests for assistance have increased by 77 percent in parts of the state is irresponsible and short sighted.

Representative David Bradley introduced two pieces of legislation with massive tax implications. HB2107 increases the tax on soft drinks and HB2447 increases the tax on liquor, both by unspecified amounts, which would likely result in tax increases of more than half a billion dollars.

With gas prices hovering at $2 per gallon and rising, two pieces of legislation have been introduced to increase the fuel tax. HB2165, introduced by Representative David Bradley, increases the fuel tax by 33 percent per gallon, for an estimated total tax increase of $222.4 million a year.

HB2586, introduced by Representatives Phil Lopes, Clovis Campbell, Matt Heinz, Daniel Patterson, Steve Farley and Minority Leader David Lujan, increases the fuel tax by 22 percent or $.04 per gallon in 2010, $.08 in 2011 and $.12 in 2012 for a total increase of $890.2 million by 2013. Each $.04 increase in fuel taxes results in an additional tax increase of approximately $148 million.

The House Minority tax plan does nothing to solve the state’s structural deficit, which is the root of this state’s economic woes. “We cannot tax our way out of this financial crisis and believe we have solved our budget problems,” Rep. McComish said. “Adding new taxes to citizens in this struggling economy is not a solution to our problem. New taxes will only create bigger problems for the state by prolonging the economic crisis plaguing families, businesses and this Legislature.”