Democrats on Thursday released a state budget plan that would hike property taxes, lower the state sales tax and avoid deep cuts to state programs.
As the minority party at the Statehouse, the Democrats are trying to chart a middle course between the deep cuts of the Republicans' budget plan for fiscal 2010 and the 1-cent-per-dollar sales-tax hike that they believe Gov. Jan Brewer is promoting.
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Their ideas hinge on lowering the state's 5.6 percent sales tax to 3.4 percent and broadening the base of businesses to which it would apply. For example, they want to tax services ranging from accounting to hairdressing.
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Democrats admit their plan would raise property taxes by hiking the state-imposed rate at which school-district aid is calculated. Raising the qualifying tax rate would mean a $140 increase in the property taxes paid on a $150,000 house, Campbell said.
"This is much cheaper than the 1-cent sales-tax increase that's been talked about by the Governor's Office," said Campbell, who is House minority whip.
Democrats calculate that a sales-tax increase would cost an average family an extra $438 a year, he said.
Maybe they will be able to work together-- the governor, Republicans, and Democrats. Maybe the partisan antics will be set aside and cooler heads will prevail.
Their proposals drew condemnation from Republicans. Rep. John Kavanagh, R-Fountain Hills, summed it up in five words: "Tax, tax, tax and tax."
But Democrats fired back with their own five-word description of GOP plans circulating at the Capitol: "Cut, cut, cut and cut," said Rep. Chad Campbell, D-Phoenix.
Hmmm.... maybe not.
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