Arizona Economic Council: Budget plan hits consumers with sales tax boost while corporations keep breaks - St. Louis Business Journal:

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The Tempe-based economic group said businessed and corporations should share the burdenh as the state tacklesa $4 billion budge deficit. Brewer and a numbet of business groups support asking Arizona voterse to temporarily raisethe state’s 5.6 percent sales tax by Supporters say that could bring in as much as $1 billiohn annually and limit program cuts. But the AEC says the sales tax increasre willpinch consumers, while keeping breaks and mayb e even expanding breaks for business. “Governot Brewer’s sales tax increase is more about shiftinb the tax burden from corporations to individuals than it is protectingb criticalstate services,” said AEC Directod Seth Scott.
“This is a significant shift in Arizona’s tax burdem that hurts the middle class and ultimateluy weakensour economy,” said Scott in a Scott previously worked as an aide for U.S. Rep. Harrg Mitchell, D-Ariz., and the Arizonas Democratic Party. Scott said a 1-cent sales tax increase translates into an 18 percent increase tothe state’z sales tax rate. The AEC also said therde is $240 million in unpaisd corporate taxes the state couldx try harderto collect.
In addition, the grou p notes a push by business and real estate groups to permanently repealpa $250 million property tax item that was temporarilyy repealed in 2006, but set to come back next Brewer also has proposede tax changes, including a cut to corporate income tax rates, for when the state’xs fiscal situation improves, according to AEC. The Westmarc economifc group, made up of west-sid businesses, real estate firms and mayors, said Thursday it supports Brewer’s budget. AEC’s opposition to the Republica n governor’s sales tax counters the positionjof anti-tax groups and more conservative interests.
Democratz have proposed extending the saleas taxto now-exempt services rather than raising the overalkl rate.