By Howard Fischer | Capitol Media Services/Yuma Sun
The state House voted Monday to reduce individual income taxes if the state finally starts collecting sales taxes it already should be getting.
HB 2465 says if Congress approves the Marketplace Fairness Act to tax online sales, the state would compute how much additional revenue comes in. Then the Department of Revenue would automatically adjust individual income tax rates downward on a dollar-for-dollar basis, ensuring no windfall for the state.
But Rep. Bruce Wheeler, D-Tucson, said that also means Arizona effectively is giving up on forcing its residents to pay the taxes they already owe. He said the state should use the funds to restore cuts made during the recession.
