GOP Push Tax Cut In Response To Internet Taxes
PHOENIX (AP) — Republican lawmakers in the Arizona House are pushing a measure that would cut income taxes if the state begins collecting sales taxes from online sales.
Republicans championed an overhaul of the state's complex business sales tax collection system last year partly to make it possible collect sales tax on Internet purchases if a proposed federal law passes.
Collecting those taxes could be a big windfall for the state, estimated to be at least $100 million a year.
Republicans see the new collections as a tax increase and are pushing for an identical income tax decrease once those collections begin.
Democrats argue that closing a reporting loophole is not a tax increase. They accuse GOP lawmakers of pushing for tax cuts that benefit richer Arizonans.