By ggrado | Arizona Capitol Times
The House and Senate are in the midst of budget negotiations that could result in more than $1 billion in tax cuts and the implementation of a flat income tax in Arizona.
House Majority Leader Ben Toma, R-Peoria, said that while the details are still in flux, he believes support exists for the idea of phasing in a flat income tax over three or four years. He said he would like to see the rate around 2.5%.
“The idea is to kind of do a massive economic development bill and part of that is a sizable tax cut,” he said.
Toma said the bill would also include changes to property and sales tax numbers, and that the goal is to achieve tax reductions that are broad-based yet also targeted to “move the needle” on economic growth. Toma stressed that the details are being negotiated and that some of the cuts would be offset by increases elsewhere, but he expects the overall tax cut will total more than $1 billion once it’s phased in.