by admin | Jul 16, 2015 | Uncategorized
The Arizona Free Enterprise Club today has released its comprehensive analysis of the Phoenix Transportation Plan, also known as Proposition 104. The initiative proposes to nearly double the transit sales tax to fund a multi-billion dollar transportation plan over the next 35 years.
Written by the renowned transportation expert Randal O’Toole, the paper conducts an in-depth review of the proposed transit plan and also investigates many of the claims made about the benefits of light rail in the Phoenix Metro area. The paper can be viewed online by clicking here.
Some of the key findings in the paper include:
- The oft-repeated claim that light rail has generated $7 Billion dollars in economic development is simply untrue. In fact, many of the projects included in this claim have never been built (like the Sycamore Station development) or involve projects that have nothing to do with light rail (such as the $600 million Convention Center Expansion, which was funded largely by state tax dollars).
- The main beneficiaries of the transit plan appear to be contractors and developers who have projects near rail stations. The tax revenue from the plan combined with the generous subsidies offered to select developments ensures that this plan will benefit a few contractors and developers at the expense of others.
- The plan is unbalanced and ignores vehicle street improvements. Despite the fact that only 3% of the population uses transit (less than 1% use light rail), 95% of the funding in the plan goes toward expanded bus and rail service. Only 3% goes toward vehicle street improvements.
- Transit ridership actually fell after the light rail opened. From when light rail opened in 2009 through 2014, any gains in light rail ridership were offset by the loss of more than one bus rider. Ridership is still 1.2 million less per year than it was in 2009.
- The transit plan as proposed will increase traffic congestion, energy usage and greenhouse gas emissions. In fact, the transit plan will use more energy and emit more pollution per passenger mile than the average SUV.
“Randal O’Toole does an excellent job in his analysis of debunking many of the claims made by supporters the Phoenix Transportation plan,” Free Enterprise Club President Scot Mussi said.
“Additionally, when considering the near doubling of the transit sales tax and the lack of accountability with how the money would be spent, this amounts to being a very bad investment for Phoenix taxpayers.”
by admin | Jul 13, 2015 | Uncategorized
In case you missed it, be sure to check out my op-ed in the Arizona Capitol Times in which I argue that Prop 104 is designed to benefit insiders at taxpayers’ expense. In addition to fact that over 90% of the funding goes toward light rail and buses (less than 8% to streets), the initiative is so poorly written that it is essentially a blank check for City Hall.
Phoenix can ill afford this multi-billion dollar tax increase. If Prop 104 passes (nearly doubling the transportation sales tax rate), Phoenix will have one of the highest sales tax rates in the region:
And now, as was reported in the Arizona Republic last week, an array of large companies that stand to financially benefit from the initiative are pouring big money into the YES campaign.
Higher taxes, no accountability, and a poorly drafted plan designed to benefit a few politically connected insiders. That is all you need to know about Prop 104.
by admin | Jul 9, 2015 | Uncategorized
Watching Greece teeter on the verge on economic collapse may feel like they are staring into the future. After all, the debt crisis was precipitated by the left wing Greek government promising its citizens outlandish benefits without cost or consequences. Now those false promises are colliding with reality.
Here in Arizona, we are just a few years removed from the President proclaiming that his health care plan would save families $2500 a year, and that if you liked your health care plan, you could keep it. Democrats even boldly named the law the “Affordable Care Act.” Unfortunately, reality is starting to set in.
Arizonans and small businesses will now see rate hikes as high as 27% next year. And we’re the lucky ones. Oregon’s Insurance Commissioner just approved rate hikes as high as 38% a few days ago, while residents of Minnesota and New Mexico could see their rates jump by over 50%. And this is just the beginning. With underwriting essentially a thing of the past, and costs of health care continuing to skyrocket, double digit rate increases are the only certainty surrounding Obamacare in the years to come.
Health insurance companies know this all too well. That’s why you are seeing so many mergers take place across the industry. Not just blockbuster mergers like Aetna and Humana, but also countless smaller insurers, as Jake Novak points out, in order to better absorb the staggering costs. Also, with less competition, and fewer choices for consumers, rate hikes become easier to push year after year – especially as the IRS “penalty” for being uninsured becomes more and more draconian.
This is also pushing more people onto Medicaid at a staggering rate, more than any state government can either afford or manage in the near future.
This is government run health care. This is our future if we don’t fight to change it. Massive taxes, staggering amounts of debt, and skyrocketing health care costs and premiums on a middle class that is further pushed to the brink.
Just ask the Greeks.
by admin | Jun 22, 2015 | Uncategorized
Normally when the government hands out special deals and subsidies to businesses, part of the difficulty in defeating these proposals is that it is far easier (and politically rewarding) to showcase the winners than it is to identify the losers. Not this time.
Last week, Phoenix-Mesa Gateway Airport’s board of directors announced that they wanted to get into the route-making business. Believing that the airport needed to add flights to San Diego and Salt Lake City, the board has offered an package of special incentives (no terminal fees for 6 months and funding for an extensive marketing campaign) in exchange for creating these routes. The airport even offered to pay $7,000 for every flight the airline couldn’t fill, essentially guaranteeing the profitability of these routes.
Allegiant Air, which has flown over 3 million passengers out of Gateway in the last 8 years, didn’t want to add a route just 50 miles from their popular Provo/Orem destination in Utah and refused the offer. Their competitor, Elite Airways, which has only seven planes at the airport and is struggling to compete with Allegiant, gladly accepted the money.
As a result, Allegiant Air, which almost single-handedly kept Gateway afloat during the Gaylord Hotel debacle and other growing pains, is now in discussions with Sky Harbor to move and take their 243 employees with them. Sky Harbor may have more competition, they reason, but at least that competition isn’t subsidized.
So in order to get two new routes that were not in demand (presumably because no passengers wanted it), Phoenix Mesa Gateway’s board of directors is willing to let their primary carrier and top employer walk out the door.
If you live in the Mesa or Queen Creek area, the next Board of Director’s meeting isn’t until July 21st, so there is still time to make your voice heard and save Phoenix Mesa Gateway from itself. In the meantime, if you’re thinking of taking a vacation you can still book a flight with Allegiant, or you can do what most people do when traveling from Phoenix to San Diego:
Drive.
by admin | May 26, 2015 | Uncategorized
On May 15th, the Center for the Study of Economic Liberty at Arizona State University and the Arizona Free Enterprise Club organized a highly informative breakfast forum, led by two brilliant economists: Stephen Moore and Stephen Slivinski. The topic was one you will be hearing a lot more about in the coming months as Gov. Doug Ducey considers ways to reform government and drive the economy: Reducing and potentially eliminating the state income tax.
As numerous studies and books have shown, the income tax stifles economic growth and disproportionately hurts small businesses – particularly “pass-through” entities like sole proprietorships, partnerships or LLCs. Moreover, the tax code has become a lobbyist and special interest feeding frenzy, as special carve-outs and tax credits for everything from Hollywood studios to rooftop solar have become the norm.
Yet reforming our tax system to eliminate the income tax has always been derided by the left and the media as too radical, or worse. They ignore the competitive advantage Arizona would gain over states like California, vying for companies and jobs to relocate. Not to mention the economic boom that would result in lifting a heavy burden from the small businesses that provide jobs for 97% of the workforce.
But now that Gov. Ducey has shown real leadership in not only calling attention to the need for tax reform, but also publicly considering eliminating the income tax as an option, the issue has newfound importance and is getting a second look.
Towards this end, Mr. Slivinski has published a terrific policy report on exactly how Arizona can transition away from the income tax, towards a more economic friendly tax model – one that doesn’t subject the General Fund to huge swings in projected revenue. He lists five options, from eliminating it immediately to an 8-year phase down – that discusses all the benefits, drawbacks and challenges in doing so.
I not only highly recommend it, I hope you forward it on to your representatives in the Legislature, and onto the Ducey Administration as well.
The full report can be found here.
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