Arizona Votes For Sales Tax Increase

Arizona voters have decided to side with their interim governor and vote for a sales tax increase to rescue a state that is in one of the worst financial conditions in the nation.

Mention the state of Arizona and people immediately get fired up about immigration. Some are for it. Some are against it. Everybody is passionate about their view. That is nice and all, but it also diverts attention from the very basic fact that Arizona is utterly bankrupt in every sense of the word.

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States throughout the country have been hit by a double whammy the last few years. On one hand, they've committed to spending money as though the economy and tax revenues would just continue to grow for ever. On the other, the Great Recession has made such assumptions laughingly unrealistic. This has put many states deep into the red with no relief in site.

Arizona is perhaps one of the worst hit states. A state with generally conservative leanings, the tax base has traditionally been pretty low. That hasn't stopped politicians from doing what they do best - spending all they can. Well, it has come back to haunt them as the state has seen roughly a 30 percent drop in tax revenues as the Great Recession has taken full effect. If the state were a person, it would be dead and buried.

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Faced with an economic disaster, the state has been forced to do what it should have done long ago - cut spending. Alas, the damage has been so extensive that necessary functions like schools have been cut to the bone, which isn't a good thing. Facing disaster, the political groups have for the most part all gathered together and put a measure on the ballot to raise the sales tax a penny. The measure passed and the state will gain a cool $900 million the first year to provide it with some relief.

I am generally against tax increases, but have no problem with this one. Fundamental services like schools were being hurt and needed help. More importantly, it was the voters that actually decided the issue instead of slimy politicians like occurs in so many other states.

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