News updates are sent daily. You can unsubscribe at any time.
Our View: Mesa should not go back to food tax
Digg|
Save|
License|
Print|
E-mail|
Mesa Mayor Scott Smith
Mesa Mayor Scott Smith has a clear message for his city - residents who want similar levels of public safety protection and other city services in the future will have to pay more somehow.
Actually, this is a message that has been coming from Mesa leaders for at least three years. And residents have heard to some extent, voting in May 2006 to raise the city sales tax for operations and again this November to support the first property tax in 50 years to repay new debt forfire and police stations and street improvements.
But Smith said in a news conference last week those resources aren't going to be enough, as illustrated by the city's present fiscal crisis that will require $62 million in spending reductions over the next two years. As we noted Nov. 23, the city likely will lay off employees and make a number of smart changes in how it operates to cope with the projected shortfall.
However, Mesa's reliance on sales taxes, utility fees and state-shared revenues still leaves vulnerable city funding for basic services. Sales tax revenues jump up and down rapidly with turns in the economy. Mesa can squeeze almost nothing more out of its utilities for general funding. And state-shared revenues, which are based on population growth and the health of statewide tax revenues, never will fill the gaps.
Still, Smith isn't suggesting another look at a general-purpose property tax, at least not yet. In Monday's news conference, Smith said he wants the city to reconsider a 2000 voter initiative that repealed a sales tax for groceries, Tribune writer Sonu Munshi reported.
It's easy to understand Smith's thinking. People have to eat even when the economy slumps, and so grocery sales taxes are more steady than taxes on other retail items. In July and August, statewide sale tax revenue collections dropped by nearly 15 percent. But the amount flowing in from food and liquor sales actually rose by more than 2 percent, according to the state statistics.
Unfortunately, a grocery sales tax is among the most punishing forms of taxation for the poor and middle classes. The only way to minimize these payments in tougher times is to eat less, risking malnutrition.
We supported the repeal of the grocery sales tax in 2000, and we couldn't in good conscience suggest the city fix its long-range budget problems now on the backs of its poorer residents.
We urge Smith to go back to the drawing board.
Please add your comments, but follow these guidelines to keep this a safe, credible place for discussing the news: