Lawmakers Want To Alter Arizona Tax Law To Avoid Income Tax Increase
Three Republican lawmakers want to alter the state’s tax law to ensure Arizonans don't pay more in state income taxes because of changes in federal law. The move would defy Gov. Doug Ducey’s effort to “conform” with federal law. Republican Senator J.D. Mesnard is one of those three Republicans.
"Version one, which we think is the most ideal because we can move with the most speed and it's very clear and easily understood, would conform on everything but offset all the tax rates by 0.11, which negates the tax increase, at least on the average. So you end up with a revenue neutral bill," Mesnard said.
The other version would restore some of the deductions that would otherwise disappear because Arizona's income tax code automatically conforms to changes in the Internal Revenue Code. And that automatic change could cost Arizona taxpayers between $133 million and $300 million.