My state seems to have the worst government in the nation, at least where handling money is concerned. I heard on NPR this morning that the per capita budget deficit is number one in the nation, and that
bankruptcy is a possibility. State income is at 2003 levels, whereas state spending last month was at a record high, as was the previous month. Another relevant factoid, not mentioned in today's news, is
that state spending on public schools, per student, is close to the nation's lowest, competing with Mississippi.
bankruptcy is a possibility. State income is at 2003 levels, whereas state spending last month was at a record high, as was the previous month. Another relevant factoid, not mentioned in today's news, is
that state spending on public schools, per student, is close to the nation's lowest, competing with Mississippi.
Now John McCain is not the only multi-millionaire in Arizona. We have our share of very rich people. As you might guess, I suspect that the wealthy people of AZ are not paying much in the way of taxes, as I think they should be. But I have not researched this so I don't know how the tax collections compare with other states. I also don't know how the state's expenditures compare with other states, except for the public school system. We have both a sales and an income tax, and we spend a minimal amount on the schools, yet we don't collect as much as we spend!
The legislature has been arguing about this for a year or more. All they talk about is cutting spending. I never hear about any proposed tax hikes other than a sales tax hike, which was proposed and rejected.
Oh, yeah, they have put the Capitol Building up for sale! They plan to sell it and then pay rent, using the proceeds to forestall bankruptcy for a year or two. What a dumb idea, but if you cannot raise taxes, maybe it's better than bankruptcy. It's only a short term fix, and it raises the states expenses, because of the rent they will have to pay. Also, this is not the time sell real estate. If they wait two or three years they can probably get more money for it. Of course, if they wait, they might not have to sell it, assuming they do something serious about their deficit problem.
Of course the majority of the legislators are republican, as is the governor.
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Hi Mr. Timin,
ReplyDeleteI too am interested in the recession and Arizona's response to it. Because of the drop in revenue for all government agencies, they are struggling with how to get the money they expected to have. But, aren't we all? The recession has affected us all. We all have fewer dollars, including the government. It just doesn't seem fair that I should pay more taxes at a time when I have fewer dollars. It looks like they will probably create a new sales tax along with the sale of bonds. The sales tax will affect us all. The bond sales might be a reasonable way to go however. For those people who have assets, letting the government borrow their money at some reasonable interest rate, like 4% or 5%, seems fair. If I go to the bank to lend them some money, a CD for example, I'd be lucky to get more than 1%. I looked up the tax rates for AZ and CA to compare and have left them below. If I were a millionaire, I would prefer to live in Arizona. Otherwise, California is the place to be and they don't seem to be fairing all that well either. Thank you for your blog.
Arizona
If your income range is between $0 and $10,000, your tax rate on every dollar of income earned is 2.59%.
If your income range is between $10,001 and $25,000, your tax rate on every dollar of income earned is 2.88%.
If your income range is between $25,001 and $50,000, your tax rate on every dollar of income earned is 3.36%.
If your income range is between $50,001 and $150,000, your tax rate on every dollar of income earned is 4.24%.
If your income range is $150,001 and over, your tax rate on every dollar of income earned is 4.54%.
California
If your income range is between $0 and $7,168, your tax rate on every dollar of income earned is 1%.
If your income range is between $7,169 and $16,994, your tax rate on every dollar of income earned is 2%.
If your income range is between $16,995 and $26,821, your tax rate on every dollar of income earned is 4%.
If your income range is between $26,822 and $37,233, your tax rate on every dollar of income earned is 6%.
If your income range is between $37,234 and $47,055, your tax rate on every dollar of income earned is 8%.
If your income range is between $47,056 and $1,000,000, your tax rate on every dollar of income earned is 9.3%.
If your income range is $1,000,001 and over, your tax rate on every dollar of income earned is 10.3%.