Home World News Proposed $1.5 billion tax cut mostly benefits richest Arizonans | Arizona Politics

Proposed $1.5 billion tax cut mostly benefits richest Arizonans | Arizona Politics

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PHOENIX (3TV/CBS 5) – Gov. Doug Ducey and Republican leaders at the state Capitol are pushing a $1.5 billion tax cut they said will benefit all Arizona taxpayers. But it won’t benefit everyone equally. Less than 10% of the cuts will go the bottom 80% of Arizona taxpayers, according to an analysis conducted by the Arizona Center for Economic Progress. The same study also shows 91% of the cuts will go to the wealthiest 20% of Arizona taxpayers, or those making more than $108,000 a year.

A 2.5% flat tax rate is the basis of the proposed tax reduction that, if passed, will essentially become permanent. While lawmakers can slash taxes with a simple majority vote in the House and Senate, it takes a two-thirds majority in both chambers to hike taxes because of a voter-approved initiative that passed in 1992.

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