AZ Legislature Cuts Number Of Income Tax Brackets

December 13, 2013

A special legislative panel voted Thursday cut the number of state income tax brackets. But some lawmakers are concerned about what comes next.

Right now, tax rates for singles run from 2.59 percent for the first $10,000, to 4.54 percent, for everything over $150,000, with three rates in between.

State Representative J.D. Mesnard’s plan would keep the top and bottom rates the same with a single rate in between, narrowing the gap between the extremes. But Mesnard admits he sees this as an interim step toward a single tax rate.

Senator Steve Farley is concerned that’s just a step toward a flat tax, where everyone pays a set percentage of their income.

“Why should we move toward that direction if the pure version of going toward that direction is so reprehensible to everyone on this committee?” Farley asked.

He says the people who are struggling in Arizona are the middle and working classes. The panel’s recommendations now go to the full Legislature.