Tempe Could Join Mesa In Fight For Regressive Taxes

Tempe City Hall
The progressive Tempe City Council has approved fighting for the right to impose a regressive tax on services. The Council voted in favor of exploring litigation against the State of Arizona to refute the legality of Proposition 126.
Proposition 126 was a statewide ballot initiative that outlaws new taxes on services.
The Tempe City Council could join the City of Mesa is litigating the matter. Following direction from the City Council at last week’s Special Meeting, Tempe is retaining outside legal counsel and will explore litigation.
The cities of Scottsdale and Flagstaff could join the litigation as well.
Tempe voters approved with 68 percent of the vote a sales and use tax for arts and culture, in the city’s Special Election was Nov. 6. The Tempe sales and use tax of one-tenth of one percent for arts and culture. It pertains  goods sold at retail. Sales taxes are regressive in nature and impact the middle-class and poor populations disproportionately.
Tempe leaders say that Proposition 126 is “flawed and was written without definitions of key terms for the types of activities that are subject to taxation.”
The new tax will take effect on Jan. 1, 2021, immediately after the existing one-tenth of one percent tax expires in 2020, so no increase will be felt by Tempe residents.

6 Comments

  1. Everyone should pay the same amount of taxes, because we all get the same amount of government, and that amount should be very small because government should be minimal.

  2. It’s airways nice to see the voice of the people eroded and ignored by those elected to represent us.
    Elected officials need to understand that the people have already spoken on the matter, and they said NO.
    Funny how elected public office holders value votes to elect then into office but ignore the voters voice when they disagree with it.
    The people have spoken, and elected officials need to hear them not litigate them.

    The Oracle

  3. Nope! The poor spend a disproportionate share of their income on retail goods ergo they are harder hit ergo the tax is regressive

  4. While this tax is being labelled “regressive,” a sales tax is a fair way to raise money. And since low-income people buy less items (presumably, anyway) they pay less than the big spenders.

    The real question about this tax, and every other one is..is this tax really necessary ??

    • “And since low-income people buy less items (presumably, anyway) they pay less than the big spenders.” Did you really just say that? They spend way less because they have way less money. They live pay check to pay check. So your idea is to take more of their money? They still eat and use toilet paper like you do. Their extra $5/month on taxes is like $200 to you. You’re pretty cruel to take from the poor to give to the crooked government to give to their rich friends.

  5. The poor pay more on goods than services and that is why the middle class and the rich voted o exempt services from the imposition of sales taxes.

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