By Howard Fischer | Capitol Media Services via Arizona Daily Star
Arizonans hit with higher state income taxes due to federal changes won’t get relief this year — but GOP lawmakers are demanding taxes be cut next year.
Senate President Karen Fann said lawmakers in her Republican caucus are looking to make major changes in the state tax code.
Those would make up for the fact that Arizona is taking an extra $155 million this year out of the pockets of state taxpayers because of the changes in federal tax law.
The biggest change would be to increase — sharply — the standard deduction on state tax forms.
Right now individuals who choose not to itemize get a $5,183 deduction, while married couples get double that amount.
The proposal on the table would boost the deductions to $12,000 for single people and $24,000 for couples.
That would be a major tax cut for many Arizonans while eliminating the need for most of them to itemize deductions.