• Good News for Arizona, Bad News for Goldwater
    posted by Mike McClellan at 5 May, 5:20 PM  0 
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    So our job creation in Arizona is outpacing predictions right now, according to an article in today’s paper (you can read it here).

    All sectors of our economy are adding jobs, even in construction.

    So why is this bad news for the Goldwater “Institute”?

    A couple of years ago, that right-wing propaganda machine predicted a dire future for our state, with job losses between 14,000 and 50,000.

    All thanks to the ignorance of voters.

    The Institute claimed that if the one-cent sales tax was enacted, all kinds of bad things would happen to our state:

    “In 2009, the Goldwater Institute asked The Beacon Hill Institute at Suffolk University to perform a study on the effects of Arizona raising its sales tax. According to the study, the institute concluded that the state would lose approximately 14,000 sector jobs. According to Byron Scholmach, Ph.D., director of the Center for Economic Prosperity at the Goldwater Institute, the study was based on real world analysis. The Beacon Hill Institute stated that the analysis was based on their STAMP (Tax Analysis Modeling Program) model. Additionally, the institution found that the increase would, according to the study, cut the state’s economic output by $1.2 billion and residents would see their total after-tax income fall by an average of $300 per household. Also included in the conclusions wss the potential loss of 5,260 public employment jobs.”

    It would be one of those evil tax increases.  And would lead to massive job losses.  Jon Kyl and John McCain joined the opposition, too, making similar arguments:  A tax increase!  The sky is fallling ,the sky is falling!!

    Here we are, awhile later.  No job losses.

    Oops!  

    In fact, since we’ve had the sales tax increase, jobs in our state have increased and unemployment has slowly ticked down.

    So what?

    Beyond that this once again shows the Goldwater Institute is more interested in pushing their charades rather than act as the think tank it claims to be, it reveals once again this inconvenient truth:

    Tax increases or decreases are just one factor in a complex economy, and to pinpoint taxes as the be-all and end-all — as many on  the Right tend to do — is deceptive and simplistic.

     


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    Bio: Mike McClellan has lived in Arizona since 1967 where he attended high school and the University of Arizona. McClellan taught high school English for 36 years, including 30 years at at Dobson High School in Mesa. He has been a contributing columnist to both the East Valley Republic editions and the East Valley Tribune.


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