Friends,
Earlier today, Americans for Tax Reform sent an e-mail to Arizona legislators highly critical of Governor Brewer's budget plan. While I think Grover Norquist and his team are incredibly smart people whom I consider friends, their e-mail warranted a response:
I understand your perspective on
Arizona not having a shortfall but an overspending problem. I
agree. It has been that way since Governor Napolitano essentially took
control of the budget process after the 2006 election. With a weak republican
legislature, she had her way. Now with the worst recession since 1982, we
are in dire straits. As I said at the meeting yesterday, If we had Tabor
in place during the entire decade, we would still have overspent by $200
million in 2008, $1.5 billion in 2009, $2 billion in 2010 and $2 billion in
2011 and so on. It would slowly start to decline and later this decade
(2015+) it would be back to balanced. My point is this is no longer just
government overspending, this is a real structural deficit and tax revenues are
in free fall.
Here is the original e-mail to Arizona legislators:
Dear
Legislator,
I am
writing to strongly urge that you oppose Governor Jan Brewer’s plans for a $1
billion in annual tax increases on Arizona taxpayers.
One of
the few things economists of all political stripes can agree on is that the
last thing you want to do in a recession is raise taxes. Raising taxes in the
current economic downturn will hurt Arizona families and encourage businesses
to relocate across state lines, taking jobs with them.
According
to the Center for Fiscal Accountability, Arizona taxpayers already spend 194
days – more than half the year – working just to pay for the cost of
government. Furthermore, many Arizonans are already wondering how to cope if
President Barack Obama’s budget – which contains over $1 trillion in tax hikes
over the next 10 years – is passed into law. In this environment, Gov.
Brewer’s proposed tax hikes will serve as the proverbial straw that breaks the
state’s economic back. Irrespective of the form in which it passes, it will
have an adverse and deleterious impact on the Arizona economy and taxpayers.
I urge
you not to be fooled by claims this tax hike would be “temporary”. History has
proven that ‘temporary’ tax hikes are about as prevalent in nature as
unicorns. Point of fact, Arizonans that have land line phones are still
paying the “temporary” tax hike put in place to fund the Spanish-American War
of 1898.
Do not
forget – Arizona does not have a budget shortfall – it has an overspending
problem. According to the Goldwater Institute, the state’s general fund
spending has grown at double the rate of population and inflation over the last
five years – 66 percent compared to 33 percent. For the Arizona economy to
recover and prosper, the size of government must be reigned in.
Families
all over the Grand Canyon State are cutting back, making tough decisions, and prioritizing
in order to live within reduced means. The state must do likewise.
Some
elected officials view taxpayers, rather than tenured bureaucrats, union bosses
and other spending interests, as their constituents. Americans for Tax Reform
commends those elected officials who work for Arizona taxpayers rather than
against them. Feel free to call on me or ATR’s state government affairs
manager, Patrick Gleason ([email protected])
with any questions or concerns.
Onward,
Grover G.
Norquist