Proposition 126 - A ban on service tax

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    Yes - For the Measure

  • No - Against the Measure

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Why should voters support or reject a ban on taxing services?

Is a prohibition on all services needed? Should the categories of services be addressed individually rather than en mass through such a broad initiative?

As more commerce transitions to services and away from goods, how should government make up for the decline in sales tax revenue if they are not able to tax any service?

Can government be trusted not to tax vital services such as medical care in the future?

Voting Yes on Proposition 126 will protect Arizona consumers and small businesses from paying a new sales tax on services. Politicians want a sales tax on services like; healthcare, childcare, veterinary services, air-conditioning service, plumbing and much more. By voting yes on Prop. 126 voters can protect themselves by amending the constitution so that in the future a sales tax on service will only be allowed by a vote of the people.
By voting Yes on Prop. 126 citizens will be protecting all services. They will not be picking winners and losers. Currently, service providers are taxed. Their labor is taxed with an income tax. A new sales tax on services will be double taxation on workers labor. By prohibiting a sales tax on service voters will be stopping double taxation on hard working Arizonans.
As the economy grows people buy more goods. This, along with increasing wages, creates more revenue for government through existing taxes. The reason why the service sector is growing as a percent of the total economy is because healthcare is the fastest growing sector of the economy. Creating a new sales tax on health care would hurt those who can least afford increased costs. Utilizing health care is not a consumer choice. When you get sick you have to get health care. A new tax on health care would put people on a fixed income like seniors, disabled people and lower income Arizonans in the most jeopardy.
The politicians and organizations opposing Prop. 126 have called for a broad-based tax that covers all services. When they say this, they are talking about a tax on health care, child care and other essential services. The only way to protect yourself against bad ideas from the politicians is voting Yes on 126. Proposition 126 will prohibit the politicians at the legislature and local governments from taxing these essential services. Take the power in your own hands and vote yes to protect yourself, vote yes to protect small business and vote yes on 126 to Protect Arizona Taxpayers.
As an advocacy group for taxpayers here in Arizona, we implore you to reject proposition 126 on November’s ballot. This flawed proposal purely serves special interests, not Arizona’s families.

Arizona is at its best when businesses compete on their own merits and when the government is not engaged in picking winners and losers in the market place. With the implementation of prop. 126, the government does just that by exempting certain kinds of businesses in the services industry from paying taxes – placing the burden on everyone else. Enaction would force other kinds of businesses to pay more taxes to compensate for this unfair special treatment. This system simply rewards lobbyists and the politically well-connected at the expense of average Arizonans.

Proposition 126 is a constitutional carve-out for special interest groups, not a tax break.
Every Arizona business should pay the same, lower tax rate. No favors or exemptions should be carved out for corporations who can afford effective lobbying efforts, which is exactly what Proposition 126 intends to do. Instead, we need a low, fair rate that treats all businesses as equals and allows the consumer to take charge. By prohibiting taxes on the service industry, Prop. 126 would cause sales tax rates to increase on other business and their consumers.

The intention of lowering taxes should be tackled in a way that provides equal opportunity for all businesses and consumers to thrive. Proposition 126 does not meet that standard.
Our organization advocates for a tax rate that is fair. Non-service-based businesses should not have to make up for the unfair breaks that service-based companies receive through Prop. 126. Rather than increasing the sales tax rate on non-service businesses, Arizona must implement a lower rate that treats all businesses equally. This approach makes the market fairer.
If Arizona voters reject Proposition 126, the Legislature would have to jump through incredible hoops to make any changes to increase or implement a sales tax. The Arizona Legislature can’t implement a tax on services without a two-thirds majority – a necessary check on government from imposing burdensome taxes on Arizona businesses and families. These hurdles serve as a safe-guard in the legislative process that protect us from new taxes, such as on medical care.