Once again the Arizona State Legislature and Governor Jan Brewer have taken the beautiful state of Arizona backward. This time, however, it was largely below the radar, certainly in comparison to the anti-immigration bill, SB 1070. Also, this time instead of people seeking a better life, they targeted a different object of their hatred--the middle class. And this time they have been wildly successful. Citing the recession and the end of the bail-out money, our state government, as essentially all others, has faced massive budget problems. Their solution: (1) give huge tax cuts to the rich; (2) pay for those tax cuts in part by gutting the educational system from Kindergarten through the universities; and (3) sneak hidden taxes into state employees pension payments. In short, the children of Arizona and state employees are required to subsidize the greed of those who control our state officials.
The last of these strategies, sneaking the taxes into state pensions, I doubt will make the news, but it's a nice trick. The bill, SB 1614, was signed into law on April 6, and sponsored, among others, by Russell Pearce of SB 1070 fame. The legislature tried to launder the money so that it wasn't clear what was happening, but not surprisingly they weren't successful. Anyone paying into the State Retirement System (ASRS) is now required to pay 53% instead of the traditional 50% of their contribution to their pension. Sounds OK, since in essence one is paying onself. The employer (state institution of whatever sort) should therefore only be paying 47%, saving the state some much-needed money. Indeed, on reading the bill it is carefully worded to make it sound like that's precisely what happens. In these difficult times I imagine (and know for a fact in many cases) that many professionals who have dedicated their lives to the state would be happy to take this burden to help. But that's not the end of the story. Really, the employer is still paying the same amount as before (50% of the contribution), but only 47% goes to the pension fund. The 3% difference goes to the state general fund. So really the only part of the calculation that matters is this: the employee pays an additional 3%, and the state general fund gains an additional 3%. Everything else is sleight of hand. So this is a direct, nontrivial income tax on middle class state employees. Again, many if not most of these folks probably are willing to pay the tax. What's unacceptable is that this tax on the middle class directly subsidizes tax cuts for the rich. No wonder Gov. Brewer is whooping it up.
Of course, this is just another in a long series of attacks on the middle class occurring in every state. Since many of those who bear the burden of this tax are educators, this episode also represents a direct attack on public education.
FYI:
SB 1614 Sponsors:
Andy Biggs
Rick Murphy
Russell Pearce
Steve Pierce
Frank Antenori
Nancy Barto
Adam Driggs
Ron Gould
Lori Klein
Al Melvin
John Nelson
Michelle Reagan
Don Shooter
Steve Smith
Steve Yarbrough
State Senators voting for passage:
Sylvia Allen
Frank Antenori
Nancy Barto
Andy Biggs
Scott Bundgaard
Rich Crandall
Adam Driggs
Ron Gould
Linda Gray
Gail Griffin
Lori Klein
John McComish
Al Melvin
Rick Murphy
John Nelson
Steve Pierce
Michele Reagan
Don Shooter
Steve Smith
Steve Yarbrough
Russell Pearce
State Senators voting against passage:
Paula Aboud
Oliva Cajero Bedford
Steve Gallardo
Jack Jackson, Jr.
Leah Landrum Taylor
Robert Meza
David Schapria
Kyrsten Sinema
Not voting:
Linda Lopez
Representatives voting for Passage:
Cecil P Ash
Brenda Barton
Kate Brophy McGee
Judy Burges
Heather Carter
Steve Court
Chester Crandell
Jeff Dial
Karen Fann
Eddie Farnsworth
John Fillmore
Tom Forese
Doris Goodale
David M Gowan Sr.
Rick Gray
Jack W. Harper
Russ Jones
Peggy Judd
John Kavanagh
Debbie Lesko
Nancy McLain
Javan "J.D." Mesnard
Steve B. Montenegro
Justin Olson
Frank Pratt
Terri Proud
Amanda A Reeve
Bob Robson
Carl Seel
David Burnell Smith
David W. Stevens
Andy Tobin
Michelle Ugenti
Steve Urie
Ted Vogt
Jim Weiers
Jerry Weiers
Vic Williams
Kimberly Yee
Kirk D. Adams
Representatives voting against passage:
Eddie Ableser
Lela Alston
Ben Arredondo
Chad Campbell
Tom Chabin
Steve Farley
Ruben Gallego
Sally Ann Gonzales
Matt Heinz
Katie Hobbs
Debbie McCune Davis
Eric Meyer
Catherine H Miranda
Richard Miranda
Lynne Pancrazi
Daniel Patterson
Marcario Saldate IV
Anna Tovar
Bruce Wheeler
Not voting - Albert Hale