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The Arizona Republic reported yesterday that there is new support in the state senate for a bill that would virtually put an end to the granting of tax breaks to big box retailers.

"If passed, cities that grant tax breaks would lose as a penalty the same amount they gave away from the tax revenues they share with the state," the paper reports.

While Wal-Mart is the best known of the retailers that would be affected, there are other entities involved, including Ikea and assorted auto malls.
KC's View:

It was just yesterday that we wrote:

We used to believe that communities should feel free to take such actions, but we're beginning to think that it may not be the smartest approach. Wal-Mart will litigate its way around the restrictions, pour money into campaigns that will supersede the laws, or will just open 99,000 square foot stores to which the restrictions don't apply.

It just wastes time and money most of these municipalities don't have.

So here's what these communities ought to do: triple or quadruple the tax rate for all such stores so that the increased tax revenue can support the new stresses put on the local infrastructure, pay teachers better money, put more computers in the classrooms, hire more cops.

There are too many communities out there that do exactly the opposite - offer tax breaks to the world's richest and most successful company as way of getting them to come to town. And sure, they may generate more sales taxes…but the time has come to really take advantage of Wal-Mart's (and other similar company's) desire for world domination.

We think this is a very good idea. And as you'll see in the Your Views section below, there is some support for it among members of the MNB community…as well as among some members of the Arizona state senate.