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Arizona Supreme Court reinstates massive income tax cuts

Under the new law, tax rates for most taxpayers would drop to a flat 2.5%, and revenue would be...
Under the new law, tax rates for most taxpayers would drop to a flat 2.5%, and revenue would be cut by $1.9 billion once the tax cuts are fully in place.(Pixabay)
Published: Apr. 21, 2022 at 4:46 PM MST
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PHOENIX (AP) — The Arizona Supreme Court says the state’s voters do not have the right to reject a massive income tax cut approved by the Republican-controlled legislature last year. Thursday’s decision means a nearly $2 billion cut that mainly benefits the wealthy is in effect.

The high court overturned a lower court judge who sided with education advocates who collected enough signatures under the state’s referendum law to block them from taking effect until voters could weigh in in November. But the Supreme Court agreed with the low-tax advocacy group the Arizona Free Enterprise Club’s argument that the tax cut law falls within an exemption to the state constitution blocking referendums if the law affects the “support and maintenance” of the government.

Under the new law, tax rates for most taxpayers would drop to a flat 2.5%, and revenue would be cut by $1.9 billion once the tax cuts are fully in place. That’s down from a range of 2.59% to 4.5%.

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