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The state of Arizona has created a commission to examine their tax code. While the Arizona government argues that not enough tax revenue is being collected, the Goldwater Institute came out with its own policy study showing the opposite: too much money is being taken. Arizona’s revenues have risen faster than the Arizona economy has grown, proving that tax holes don’t exist. However, the state’s tax rates are still not competitive. Texas, Colorado, and Nevada are regional competitors that have more attractive tax structures.
The Goldwater Institute is proposing either a flat income tax, a flat “consumed income” tax, or a retail sales tax. Any of these proposals would simplify the tax code and cut taxes for every resident of the state. Arizona, if they followed the think tank’s plan for a 3% tax rate, would have the competitive tax structure in the region. Moreover, the tax proposals would get rid of the double taxation on savings that discourages investment. Combined with a decrease in compliance fees, these effects would significantly strengthen Arizona’s economy.
The Goldwater Institute proposal limits the role of government, gives money back to taxpayers at all levels, and will create a vibrant state economy.
The link to the .pdf is http://www.goldwaterinstitute.org/pdf/materials/292.pdf