Phoenix transit tax bad for education
Those who want to increase funding for K-12 education should oppose the City of Phoenix’s rush to the ballot for an increase in its sales tax for transportation.
As a practical matter, increased funding for education will require a tax increase. And as a practical matter, the sales tax is the most politically viable option.
Arizona, however, already has a high combined state and local sales tax rate, ninth highest in country. There isn’t much room for additional increases.
Phoenix currently has a sale tax for transportation of 0.4 percent. A majority of the council pretty clearly wants to increase that to 0.72 percent. And they want voters to approve it right away, this August.
A rush to the ballot for sales tax increases isn’t unexpected. There is pent-up demand for increased spending seemingly everywhere. And every political consultant in the state will advise that the retail sales tax is the path of least voter resistance.
But there is no reason Phoenix transportation needs should go to the front of the line.
Phoenix’s overall sales tax rate, at 2 percent, is already the highest of any major Valley city except for the financial basket case that is Glendale. Phoenix is already sucking up more than its fair share of sales tax capacity.
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