Hospital Association Pushes 22 Percent Tax Hike on Small Businesses and Families
Hospitals add income tax hikes to their support of sales tax increase
Today, the Free Enterprise Club blasted the Arizona Hospital and Healthcare Association for pushing for a massive income tax on Arizona families and businesses.
As many of you are aware, the Club was the lead sponsor of an across-the-board income tax cut in 2006, which brought the top personal income tax rate down to 4.54 percent. The Hospital Association wants to raise that rate to 5.54 (or 22%).
The Hospital Association’s support of an income tax increase comes on the heels of their support of Prop. 100, a billion dollar sales tax increase, and seems to replace their effort to tax soda, liquor, and tobacco.
Yes, it’s hard to keep track of all the things John Rivers wants to tax. Rivers is the president of AzHHA.
According to the East Valley Tribune, Rivers said that the proposed income tax increase would affect “just a handful of Arizonans.”
Right. Mr. Rivers needs to do a little homework. According to NFIB, approximately 75 percent of small businesses pay their taxes under individual income tax system. Businesses that file under the personal income tax system include: sole proprietorships, partnerships, limited liability companies (LLC), and Subchapter S Corporations.
What a concept. Jobs keep people off Medicaid, yet the Hospital Association wants to tax jobs so people can remain on Medicaid.
Quite the web ad against tax and spend Senator Barbara Boxer.
From the Wall Street Journal Political Diary
VE Day – Victory Over Earmarks
Rep. Jeff Flake of Arizona has crusaded against earmark abuses ever since he came to Congress in 2001. Today he can take satisfaction as the GOP conference prepares to approve a moratorium on members directing federal dollars to favored interests in their home districts. The move comes the same week that House Democrats announced a ban the granting of earmarks for profit-making entities that often return the favor by making campaign contributions to members.
“It’s a major step forward,” Rep. Flake told me yesterday. While the earmark process consumes only 1% of the federal budget, it was often used as a bargaining chip to reward members to support large increases in federal spending. “It was a classic case of ‘I’ll scratch your back if you scratch my much bigger back,'” he said.
Mr. Flake also plans to follow up his success today by forcing a vote demanding that the House Ethics Committee prove it did real work to uncover abuses in an earmark scandal involving the PMA Group, a lobbying firm that bestowed numerous campaign contributions on members who steered earmarks in the direction of its clients. The Ethics Committee exonerated seven members of Congress over their involvement with PMA despite evidence that key players in the scandal, including the late Rep. Jack Murtha of Pennsylvania, were never interviewed by it.
Scottsdale and Tempe are asking voters to approve 16% bed tax rate hikes in order to boost tourism. Seriously.
Here’s a quote from the Yes on 200 (Scottsdale) website: “The additional bed-tax revenue generated from Proposition 200 will lead to more marketing of Scottsdale to tourists and meeting planners. More tourists means more visitor expenditures in Scottsdale businesses, more tourism-related jobs in Scottsdale and additional revenue coming into the city coffers, which lowers the tax burden on residents.”
Killing their argument today is a front page story in the Arizona Republic, which outlines that smoking deals currently being offered by resorts has increased occupancy rates. Now we’re talking.
Yes, tourists actually found Scottsdale resorts without more government-funded marketing. Yes, lower prices (not higher) will increase traffic, interest, and activity. It works everywhere else in the world.
There is absolutely no reason to jack up bed taxes now and send that money to the Scottsdale Convention and Visitor’s Bureau to . . . market Scottsdale. If you don’t believe me, just read the paper.
** Note: For some reason the Republic’s editorial board urged support of the new tax.