By Mary Jo Pitzl | Arizona Republic
Republican lawmakers plan to debate and vote on a state budget Tuesday, suggesting they have reached a deal that calls for $13 billion in spending and an income-tax cut that could range from $4 for lower-income families to $350,000 for the wealthiest Arizonans.
While the budget proposal has been public for more than a month, details have shifted as legislative leaders have worked to win the support to pass a plan with GOP votes only. The size of the tax cut is likely to be less than the original $1.9 billion, with more money directed to debt reduction. One proposal puts the tax cut at $1.3 billion, with two tax rates.
The move comes as lawmakers stare down a June 30 constitutional deadline to enact a budget for the fiscal year that starts July 1.
And it caps more than a month of public and behind-the-scenes maneuvering to push through a tax cut that Gov. Doug Ducey has called “historic” both because of its size and because, he argues, it would keep Arizona competitive with surrounding states.
The original plan called for a 2.5% rate for most taxpayers, with provisions to protect higher-income earners from the effects of Proposition 208, which funds education. Later proposals have pitched two tax rates.
Arizona budget: Here’s a closer look at what the Legislature’s tax plan would mean for you
