Loading...
You are here:  Home  >  Economy  >  Current Article

Tax conformance is not a tax increase, governor says

Posted by   /  December 24, 2018  /  No Comments

    Print       Email

By Howard Fischer | Capitol Media Services via PinalCentral

Gov. Doug Ducey wants to boost the taxes paid by Arizonans by $180 million — or more — when they file their tax returns this spring.

But he insists it’s not a tax hike.

Instead, it’s part of the governor’s plan to conform Arizona’s tax code to changes enacted in federal law.

Those changes took effect last year. More to the point, they are reflected in the new federal income tax forms that people across the country will be filling out between now and April 15.

Conforming to those changes, like what’s deductible, makes it easier for Arizonans to prepare their own taxes so they don’t have to make additional calculations.

And that extra cash? Ducey proposes to add it to the state’s “rainy day fund,’’ a special savings account for emergencies and for lawmakers to tap when there is a sudden unexpected drop in revenues.

That account now stands at about $460 million, less than 5 percent of the state general fund budget.

“It’s an elegant solution,’’ gubernatorial press aide Patrick Ptak said of funneling the new tax revenues into the state’s bank account.

“That’s a poor choice of words,’’ responded House Speaker J.D. Mesnard.

READ ON:

    Print       Email
  • Published: 3 weeks ago on December 24, 2018
  • Posted by:
  • Last Modified: December 24, 2018 @ 7:19 pm
  • Filed Under: Economy

Leave a Reply

You might also like...

Pollack

Pollack: There’s a recession out there somewhere

Read More →