Federal withholding change to cost the state

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Arizona bases withholding on federal rates that the stimulus law cuts. Some employers have already reduced withholding.

The Arizona Department of Revenue estimates that the federal changes would cost the state $73 million in the current fiscal year, $37 million in the next one and $109 million in the year after that.

A legislative leader says lawmakers are considering whether to raise Arizona withholding percentages to keep actual withholding the same.

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