Arizona got it right with their illegal immigration bill, and as it typical of the left they are spreading lies and misinformation about how the law will be enforced, it’s constitutionality, and it’s affects on the people in the state. The law directs police to verify the immigration status of any person they have “reasonable suspicion” to be in the country and the state illegally. Individuals found to be in the country illegally will be arrested and turned over to I.C.E.
The left is yelling that this will result in racial profiling and that people will be questioned because of the color of their skin. No lie could be worse than that one. The law requires that a police officer have “reasonable suspicion.” That means they can’t question someone because of the color of their skin. Skin color is not justifiable as a “reasonable suspicion.” Any officer that does so will be committing racial profiling which is illegal under state law.
The other lie is that the law is unconstitutional. That idea is founded in the belief that it intrudes on the Federal Government’s authority to enforce immigration law. No it doesn’t. Federal law makes it illegal to sell or possess narcotics. State laws say the same thing. Are states intruding upon the Federal Government’s role to enforce drug trafficking laws? No. Likewise, by making illegal immigration in the state of Arizona a state crime, it does not interfere with the role of the Federal Government. This is why. Arizona is not deciding what makes an individual legal or illegal. The Federal Government decides what makes a person legal or illegal. State law is not exceeding Federal law in this instance. Also, Arizona is not going to deport people, I.C.E. will deport them. So Arizona will not be performing the deportation role of the Federal Government.
Lastly we see that violence is a creature of the left. Because of this issue we have seen leftists fighting with police and a swastika was smeared on the state capital building using refried beans. Guess I’ll have to stop eating refried beans now. For a year the left has accused the Tea Party of inciting violence, and the first real of act of violence is not committed by the Tea Party, but by the pro-illegal immigrant crowed on the left.
Arizona is stepping up where the Federal Government has failed to take a stand. My hope is other states impacted by illegal immigration like Arizona will do the same.
Extremus.
Monday, April 26, 2010
Sunday, April 18, 2010
Arizona Sales Tax Increase Bad For The State
Facing billion dollar deficits and a drop in tax revenue, the state of Arizona is proposing a temporary 1% increase in their state sales tax, which would raise it to 6.6%. Of course, the usual arguments for supporting a tax increase are being made, it will prevent cuts to education, to hospitals, to police and fire, etc. You get the point. But I believe that an increase in the sales tax will have the same effect, and will not be temporary.
Back in 1991 the State of Rhode Island passed a similar 1% increase in their sales tax, increasing it from 6% to 7%. It too was supposed to be temporary. The reason for the increase was to pay back depositors who had placed money in Rhode Island state banks backed by RISDIC, Rhode Island Share and Depositors Insurance Corporation. RISDIC was going bankrupt, largely due to embezzlement by Joseph Mollicone. The citizens of the State, leery of any tax increase were assured that this increase was only going to be temporary. And the citizens of Rhode Island agreed to it. After all, this was about helping each other impacted by this event. And Rhode Island is a close nit state.
Well, as the saying goes it’s easier to raise taxes than to cut spending, so years later the temporary 7% sales tax was made permanent. The state saw all the revenue being pulled in, and decided they couldn’t lost that in the budget, so the sales tax was made permanent. The state really hasn’t recovered from the effects of that increase.
Massachusetts had a 5% sales tax which they increased to 6.25% in 2009, and Connecticut has a 6% sales tax. Since Rhode Island increased their sales tax Emerald Square Mall was built in North Attleboro, just over the Rhode Island border and twenty minutes away from the Lincoln Mall, and businesses along state route 6 in Seekonk have grown. A Super Walmart was built in Whitinsville MA. There is also the Shoppes at Blackstone Valley that went up, and Putnam, Connecticut has seen it’s share of growth as well. In comparison, Woonsocket’s retail business has declined and Providence has also suffered, though the construction of Providence Place Mall has reversed that decline somewhat. After Rhode Island increased it’s sales tax to a full 2% above Massachusetts it was like the state of Massachusetts put up a sign that said “Shop Here.”
Rhode Island is also known to have one of the highest tax burdens in the country and is routinely criticized for having the worst business climate in the country. The result is an unemployment rate right now of 12.6% and a state budge deficit of $220 million.
Arizona should be looking at Rhode Island right now as a lesson of what not to do. If the voters of Arizona increase that state sales tax, it’s my belief that when May 31, 2013 comes around, the government of Arizona will see the money they stand to lose by reducing the sales tax. They will be unwilling to make the cuts they would have to make by reducing the sales tax and will seek to either extend it another 3 years or make it permanent. After all, in 3 years I expect people will say that Arizona has grown accustomed to paying the higher tax and will try to keep it in place. People will say, “Look at what this money does for education, for hospitals, for police and fire. We can’t lose this money.” I think you get the argument that will be made.
Higher taxes are not the way to go. Responsible tax policy promotes economic growth by allowing people and businesses to keep more of what they earn which gets reinvested into the economy. I believe that when you increase economic activity you increase tax revenue. This has been shown to be the case, because economic activity means more people working and more businesses engaging in commerce which increases tax revenue. The more people who are working, the less are on government assistance, and the number of people on government assistance declines which decreases the cost to government. In that way the people who really need help can be helped and those who are able to work can find work. And those who want to start a business will have an easier time starting one.
Arizona needs to be smart. It needs to reject the increase in the sales tax and focus on tax policies and economic policies that will increase investment in the state and increase economic growth and employment. We’ll see if Arizona is smart enough to make the right decision on May 18.
Extremus
Back in 1991 the State of Rhode Island passed a similar 1% increase in their sales tax, increasing it from 6% to 7%. It too was supposed to be temporary. The reason for the increase was to pay back depositors who had placed money in Rhode Island state banks backed by RISDIC, Rhode Island Share and Depositors Insurance Corporation. RISDIC was going bankrupt, largely due to embezzlement by Joseph Mollicone. The citizens of the State, leery of any tax increase were assured that this increase was only going to be temporary. And the citizens of Rhode Island agreed to it. After all, this was about helping each other impacted by this event. And Rhode Island is a close nit state.
Well, as the saying goes it’s easier to raise taxes than to cut spending, so years later the temporary 7% sales tax was made permanent. The state saw all the revenue being pulled in, and decided they couldn’t lost that in the budget, so the sales tax was made permanent. The state really hasn’t recovered from the effects of that increase.
Massachusetts had a 5% sales tax which they increased to 6.25% in 2009, and Connecticut has a 6% sales tax. Since Rhode Island increased their sales tax Emerald Square Mall was built in North Attleboro, just over the Rhode Island border and twenty minutes away from the Lincoln Mall, and businesses along state route 6 in Seekonk have grown. A Super Walmart was built in Whitinsville MA. There is also the Shoppes at Blackstone Valley that went up, and Putnam, Connecticut has seen it’s share of growth as well. In comparison, Woonsocket’s retail business has declined and Providence has also suffered, though the construction of Providence Place Mall has reversed that decline somewhat. After Rhode Island increased it’s sales tax to a full 2% above Massachusetts it was like the state of Massachusetts put up a sign that said “Shop Here.”
Rhode Island is also known to have one of the highest tax burdens in the country and is routinely criticized for having the worst business climate in the country. The result is an unemployment rate right now of 12.6% and a state budge deficit of $220 million.
Arizona should be looking at Rhode Island right now as a lesson of what not to do. If the voters of Arizona increase that state sales tax, it’s my belief that when May 31, 2013 comes around, the government of Arizona will see the money they stand to lose by reducing the sales tax. They will be unwilling to make the cuts they would have to make by reducing the sales tax and will seek to either extend it another 3 years or make it permanent. After all, in 3 years I expect people will say that Arizona has grown accustomed to paying the higher tax and will try to keep it in place. People will say, “Look at what this money does for education, for hospitals, for police and fire. We can’t lose this money.” I think you get the argument that will be made.
Higher taxes are not the way to go. Responsible tax policy promotes economic growth by allowing people and businesses to keep more of what they earn which gets reinvested into the economy. I believe that when you increase economic activity you increase tax revenue. This has been shown to be the case, because economic activity means more people working and more businesses engaging in commerce which increases tax revenue. The more people who are working, the less are on government assistance, and the number of people on government assistance declines which decreases the cost to government. In that way the people who really need help can be helped and those who are able to work can find work. And those who want to start a business will have an easier time starting one.
Arizona needs to be smart. It needs to reject the increase in the sales tax and focus on tax policies and economic policies that will increase investment in the state and increase economic growth and employment. We’ll see if Arizona is smart enough to make the right decision on May 18.
Extremus
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