Goldwater Institute

In Arizona, occupational licensing requirements and regulations stifle competition, diminish quality of service, and drive up prices. Thousands of laws restrict entry into occupations for persons wishing to serve consumers as cosmetologists, barbers, African hairbraiders, taxicab drivers and street vendors. State agencies and occupational licensing boards act as gatekeepers, restricting competition and ensnaring entrepreneurs in thick layers of red tape.

Arizona Law prohibits out-of-state wineries from shipping wine directly to Arizona consumers, with few exceptions. A vestige of Prohibition, Arizona statutes require out-of-state wineries to sell their products to licensed wholesalers (tier 1), who then sell to retailers (tier 2), who select which beverages will be available to consumers (tier 3). It is illegal for an out-of-state producer to bypass the wholesaler. This antiquated three-tiered distribution system grants undue power to wholesalers, drives up the price of wine by forcing the product through a middleman, and reduces choices available to consumers.

In March, the Goldwater Institute released Race and Disability: Racial Bias in Arizona Special Education, which found that predominantly white Arizona school districts labeled significantly higher percentages of minority students as disabled than did minority school districts. Using 2000-2001 data, the study showed that school districts with predominantly white student bodies had Hispanic disability rates that were 47 percent higher than the Hispanic disability rates in predominantly minority districts. The study posited several possible explanations for this pattern, including perverse financial incentives, segregationist impulses, and desire on the part of districts to inflate standardized test results.

Senator Barry Goldwater best articulated his legislative mission when he said, "If I should be attacked for neglecting my constituents 'interests,' I shall reply that I was informed that their main interest is liberty."

The object of tax reform must be to decrease the tax burden on Arizonans and to end a system that punishes savings and investment. The Governor's Citizens Finance Review Commission has been tasked with examining the state's tax system and proposing changes. Although some of the commission's principles are laudable, others are based on the notion that the current system collects too little revenue. Policymakers should focus on reforms that make Arizona's tax code simple, fair, neutral, and regionally competitive. Three comprehensive reform options fulfill those criteria: