Tucson

Legislature begins its work on 2021-22 state budget, including the largest tax cut in history – Tucson, Arizona

Tucson, Arizona 2021-05-25 00:21:45 –

Phoenix — This is one of the largest state budgets in history, totaling just over $ 12 billion. It also includes the largest permanent tax cut in state history. $ 1.5 billion, primarily aimed at going to the top 1 percent of Arizona’s wage earners.

For the first time in recent memory, both Republicans and Democrats have warned that there are too many permanent tax cuts. “It will not only join the hands of the future legislature, but also the hands of the future governor. I mean it joins the hands of cities and towns,” said Globe’s state legislator. David Cook said. “I’m all in favor of tax cuts. Apart from the flat tax, I think there’s already about $ 864 million in tax cuts for Arizona’s families and people,” Cook said.

Governor Ducey says a flat tax proposal is needed to maintain Arizona’s economic competitiveness. Ducey estimates that flat tax will help create 550,000 new jobs, enough to offset tax cuts. But Congressman Cook isn’t very sure. “The Governor’s estimate is 550,000 jobs. Other estimates will require nearly 1.5 million jobs to offset future tax cuts. I have one question. Where does water come from?” Are you coming? “

Big cities and small towns will be hit hard if Congress approves a permanent tax cut.

Mayor Kate Gagego warned Phoenix that it would cost $ 82 million annually. State law prohibits cities from collecting income tax.

“We estimate that we will lose $ 82 million, which is the kind of loss that people in our city feel,” Galego said. “Calling 9-1-1 in the event of a fire slows down response times and reduces the number of librarians delivering books to children. $ 82 million is a very significant reduction and actually takes the city. You will kneel. “

Kansas tried flat tax in 2012. As a result, taxes on the business income of about 200,000 business owners have been abolished and the personal income tax rate has been reduced. What was supposed to be a boom in the state economy had the opposite effect.

By 2017, state revenues had declined. Spending on education and infrastructure was cut, and Congress eventually rolled back tax cuts, invalidating the governor’s veto in the process.

“It has devastated their economy,” said David Rougean, director of the Arizona Center for Economic Progress. “Within a few years, they have made significant budget cuts for the needs of the public education system and other states.”

On Twitter on Monday, the governor was garnering support for his budget. He promised a lot of new spending for state police, public education, roads, bridges, and the biggest tax cuts in Arizona history. But in his office in Congress, Congressman Cook was looking at a printout of the budget he had to vote for. He has a question.

“What will happen after 2024,” Cook said. “Because we are backfilling our tax obligations with common funds. There is something wrong with that.”

Cook isn’t the only Republican to raise concerns about flat tax. Former Governor Jan Brewer opposes making tax cuts permanent. She wrote an editorial in The Arizona Republic, arguing that the state had to repay its debt before considering it. Senator Paul Boyer is concerned about the reduction of cities and towns and their impact on police and fire protection.

Cook and Boyer need to vote for the flat tax, as no Democrats support it. Otherwise it will fail. Congress wants to end the session before Memorial Day.



Legislature begins its work on 2021-22 state budget, including the largest tax cut in history Source link Legislature begins its work on 2021-22 state budget, including the largest tax cut in history

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