Income tax cut of 1.9 billion


“It is clear, it was clear at the time by the lack of a whole caucus … that procedural delays and delays were being introduced instead of courtesy,” Bowers said.

Republicans say the state is overflowing with cash and the tax cut is necessary to keep Arizona competitive and to prevent the tax hike in Proposition 208 that introduced the new tax on high-income Arizonans. They argued that the tax cut will help businesses create jobs and that it will help the middle class.

“I think what we have here is a historic tax cut that will have a significant positive impact for everyone, everyone in the state,” said Peoria Rep. Ben Toma, majority leader and a major architect of the tax cuts. “It’s a tax cut that helps small businesses and it helps us as a state to be more competitive compared to our neighbors.”

The Democrats vehemently oppose the tax cuts. Without them, the state could finally fully fund schools and social programs that were never fully restored after the Great Recession.

“This is the time to make meaningful investments in the future of our state instead of giving this massive giveaway to people who really aren’t struggling,” said Paradise Valley Democratic MP Kelli Butler. “And there are many in Arizona who are really fighting.”

The $ 1.9 billion tax cuts will be rolled out gradually as revenue targets are met, starting at $ 1.3 billion this year. When fully implemented, the plan would lower tax rates to 2.5% for most taxpayers, from 2.59% to 4.5%. Wealthy taxpayers would be virtually spared the tax hike that voters voted last year to fund schools.

The average Arizona citizen who earns between $ 75,000 and $ 100,000 will save $ 231 in state income taxes, while the average taxpayer who makes between $ 500,000 and $ 1 million per year will save more than $ 12,000 so the budget analysts of the legislature.

Ducey welcomed the passing of the tax cut bill and the provision that shields individuals with incomes greater than $ 250,000 or couples earning more than $ 500,000 from the new Proposal 208 tax. The estimated $ 827 million in new money per year will still go to schools, but it will come from the general fund, preventing the state from funding other programs.

“Every Arizona citizen – no matter how much they earn – wins with this legislation. They’ll keep more of the money they make from this tax plan,” Ducey said. “It will protect small businesses from a devastating 77% tax hike, it will ensure that working families and all Arizona taxpayers are free to spend their money, and it will help our state stay competitive so we can continue to have well-paying jobs can attract. “

Changes negotiated by two GOP objectors protect the city’s revenue by increasing the percentage of income tax shared with communities and increasing the repayment of national debt to $ 1.9 billion.

The new rules eliminated most of the usual debates, questions and forced roll-call votes on amendments, which can take hours. With 29 seats out of 60, the Democrats’ only power is to hold back the movement of laws through widespread debate.

Angry, Democrats said they failed to show up Tuesday because Republicans made a number of last-minute budget changes, noting that the Republicans’ absence prevented a quorum.

Yuma MP Charlene Fernandez called the borders “absolutely ridiculous” and said Republicans wasted 26 days of the session trying to include their own members in the budget agreement.

The Senate packed the budget with conservative political priorities, including a major expansion of the state’s voucher program for private schools, a ban on teaching what is known as Critical Race Theory at K-12 schools, and a variety of elements aimed at enforcing coronavirus restrictions . These include bans on cities that need vaccines or order masking requirements if the pandemic recovers, and similar restrictions on schools and state colleges and universities.

Maricopa Republican MP Bret Roberts said he would not have voted for the health budget without these items and told members he was glad they were accepted.

Cashion Democratic MP Lorenzo Sierra, who survived a severe case of COVID-19 that left him on a ventilator for days, was baffled. “Arrogance is not an effective vaccine against COVID-19,” Sierra said.

It also relies on the unsubstantiated theory that former President Donald Trump lost in Arizona to election fraud, creating an election integrity fund of $ 12 million to pay for election security updates and other priorities.

While Republicans appear to have the votes to pass the entire budget, some of the items added by the Senate could be dropped by the House of Representatives. The lower chamber adjourned around 10:30 a.m. Thursday evening after skipping the debate on the voucher extension, which some House Republicans are opposed to.

The Senate, meanwhile, has reintroduced and passed 22 bills that Ducey vetoed last month when he said he would not sign any new measures until lawmakers approve a budget. The unexpected action enraged many lawmakers.

The senators also took the extremely unusual move Thursday to overturn one of Ducey’s vetoes that required a two-thirds majority. Republican Senator Tyler Pace said they had passed a bill that would introduce technical changes to previously unanimously passed state laws to send a message to Ducey that lawmakers won’t override.

The last time lawmakers overruled a governor’s veto was in 1981.


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