Home / Opinion / Commentary / Brewer’s tax hike a recipe for bankruptcy (access required)

Brewer’s tax hike a recipe for bankruptcy (access required)

Several otherwise conservative legislators are thinking very hard about capitulating to Gov. Jan Brewer's scheme to put on the ballot an 18-percent increase in Arizona's sales tax rate. Those legislators have argued they could wring more spending reductions out of the governor by allowing the sales tax referendum to go to the ballot.

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Tax exemption for digital goods will leave 9-figure budget hole (access required)

But this week, the Legislature proposes to take away at least another $183 million of tax revenue per year without any potential for future economic benefit. Unlike other tax reductions approved by the Legislature in recent years, eliminating the transaction privilege tax, or TPT, on digital goods doesn’t help the state attract one new job or encourage one business to relocate.