As a former Tucson retail business owner, I cannot understand why local business associations support a sales tax increase.
Local business owners are being assaulted by out-of-state online retailers. Many of these companies don't charge sales tax and every increase in local sales tax makes their products cheaper. A 1/2% tax on a $1000 sale brings in $5.00 but if the retailer loses the sale the city will lose not only this $5.00 but $80.00 it gets on base sales tax. Every lost sale must be made up with 16 more sales with 1/2% tax increases. As retailers lose revenue
they lose profits, employees, and our community is a net loser.
The solution to our lack of funding is not more taxation but better management and proper budget priorities within our local government. We cannot use short term fixes for a long term problem. It is time to break up the group think in city hall.
Disclaimer: As submitted to the Arizona Daily Star.