By Phil Riske | Managing Editor
(STATE CAPITOL) – After a short floor debate over whether the state’s personal income tax rate should be indexed to the inflation rate, the Senate on Monday passed and sent the measure to the House on a vote of 18-11.
Two Democrats argued the bill would reduce revenue at a time when the state’s budget faces a $1B deficit and would cause further cutbacks in education.
“This is a painful and difficult bill for me,” said Sen. Steve Farley (D-Tucson), who failed to get passed an earlier amendment to make the bill revenue neutral. “This will cause us to dig further (into cutbacks) . . . [and] is not helping the middle class.”
A former tax accountant, Sen. Andrea Dalessandro (D- Sahuarita) said research has shown tax cuts have not stimulated the economy nor created jobs.
“Tax cuts will be permanent,” Dalessandro said.
Sen. Debbie Lesko (R-Peoria), one of 14 primate sponsors of the bill argued it would prevent some middle class taxpayers from being cast into higher tax brackets.
“It does help the middle class,” Lesko said, adding it could result stimulate personal spending and increase sales tax revenues.
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