Arizona Democrats have proposed that state tax codes be revisited to rid them of unnecessary loopholes.
In doing so, the outrageous amounts of money that have to be cut from our state budget to make up for our even more outrageous deficit may be lessened.
Less cuts, this year and from then on, would also mean that state universities could loosen the noose that has been put around their necks and breathe, knowing that budget cuts made to higher education wouldn’t be as extensive as expected.
Of the Democrats, Rep. Steve Farley, D-Tucson, in particular, is one of the many that have proposed this move. He recently visited ASU’s Downtown campus in hopes that he could encourage students to appeal to other lawmakers the importance of lessening the reductions that will be made in the next fiscal year.
The opponents that Farley wants the students to target — the GOP specifically — never hesitate in mentioning the fact that by protecting education, other sacrifices would have to be made — specifically tax hikes.
An ominous statement, it has become the lawmakers’ and students’ jobs to publicize that budget cuts are not our only option.
Several Democrats have introduced bills in the state Legislature to deal with this. On Feb. 1, the Arizona House Democrats’ website reported these bills that could prevent astronomically high tuition in the 2011- 2012 school year.
Farley, unsurprisingly, is the sponsor of one in particular — a bill that would close a four-inch pipe tax loophole.
It was composed and passed some years ago to make building more affordable for multi-million dollar companies by eliminating taxation on pipes or valves that exceed four inches. This could amount to an $18 million boost in the state’s budget.
The Democrats’ research into the tax codes has shown that several loopholes have left the middle class squandering for coverage while the upper class citizenry is celebrating the benefits of being close to its fellow lawmakers.
Loopholes in Arizona amount to many. Another loophole protects country club memberships from taxation.
In a bill composed by Rep. Ruben Gallego, D-Phoenix, taxes would only be withheld on memberships that don’t last longer than 30 days.
And there’s yet another loophole that would amount to $20 million in funds that are, unsurprisingly, given to the upper class. During tax season, $10,000 is doled out to various big corporations across the valley for merely filing.
This is thousands of dollars that could amount in several students’ tuition costs.
These are funds that slip from constituent’s hands and are fed to the wrong people. “It’s time for transparency and accountability in government. We need a government that is on our side, one without outrageous tax loopholes,” Gallego said on the Arizona House Democrats' blog.
On the surface it appears that not making cuts to the budget could end in the state’s demise. In reality, an overhaul needs to be seen in our current tax codes and budget that would eliminate all unnecessary costs.
By feeding our students’ pockets, rather than corporate-mongering CEO’s, we can make an investment in Arizona’s future.
Reach Brittany at bemorri1@asu.edu
