Arizona tries for zero Income (state) tax

[cassowary]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

[Doc]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

West Virginia is considering going without an income tax as well and substituting a sales tax like Texas does. No idea if it will be adopted as they are just discussing it, trying to figure out what form it will take.

https://www.washingtonexaminer.com/poli ... ssions-end

West Virginia legislature passes budget, fails to pass income tax reduction at session’s end

[cassowary]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

West Virginia is considering going without an income tax as well and substituting a sales tax like Texas does. No idea if it will be adopted as they are just discussing it, trying to figure out what form it will take.

https://www.washingtonexaminer.com/poli ... ssions-end

West Virginia legislature passes budget, fails to pass income tax reduction at session’s end

Whether it’s in on tax or sales tax, it’s the rich who will end up paying more.

[Doc]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

West Virginia is considering going without an income tax as well and substituting a sales tax like Texas does. No idea if it will be adopted as they are just discussing it, trying to figure out what form it will take.

https://www.washingtonexaminer.com/poli ... ssions-end

West Virginia legislature passes budget, fails to pass income tax reduction at session’s end

Whether it’s in on tax or sales tax, it’s the rich who will end up paying more.

Taxes in WV are relatively low compared to other states already.

The governor is talking about giving back 2/3rds of the state windfall back to tax payers so there may not be much of a state income tax this coming year.

[cassowary]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

West Virginia is considering going without an income tax as well and substituting a sales tax like Texas does. No idea if it will be adopted as they are just discussing it, trying to figure out what form it will take.

https://www.washingtonexaminer.com/poli ... ssions-end

West Virginia legislature passes budget, fails to pass income tax reduction at session’s end

Whether it’s in on tax or sales tax, it’s the rich who will end up paying more.

Taxes in WV are relatively low compared to other states already.

The governor is talking about giving back 2/3rds of the state windfall back to tax payers so there may not be much of a state income tax this coming year.

That’s very good. A frugal state government that returns money to shareholders et, I mean, taxpayers.

[neverfail]

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In my country no state government levels income tax. only our federal government does that.

[SteveFoerster]

Getting to Zero in Arizona That's wonderful, if it can be done.

Article:

Gov. Katie Hobbs wants to halt Arizona’s progress toward lower tax rates, but what do Arizonans want? Republicans in the Legislature plan to put that question to voters with a ballot measure that could set the state’s income tax on a course to zero.

State Sen. J.D. Mesnard is leading a push to enact revenue triggers, which would automatically reduce Arizona’s income-tax rate each year if the state has a surplus. The state’s tax agency would measure the difference between recurring revenues and spending, and then adjust it for population growth and inflation. In the event of a surplus, it would cut the income tax by enough to reduce that surplus by half in the next year.

The plan would build on recent victories in Arizona that have reduced its low tax rate on income. Voters approved a ballot measure in 2020 that would have raised the rate to boost school spending, but the measure was challenged in court. Meanwhile, then-Gov. Doug Ducey and the GOP Legislature cut the income tax to a flat 2.5% from 4.5%. Then last year the Maricopa County Superior Court ruled that the ballot-approved tax hike violated state spending limits, which left the 2.5% flat tax in place.

Now Sen. Mesnard and fellow Republicans are betting that Arizonans have warmed to low tax rates. The tax-trigger proposal also takes the form of a ballot measure, which would be put before voters in 2024.


Offering the tax cut as a referendum would help debunk the mandate Democrats claimed from the 2020 ballot measure. Voters narrowly backed the measure, with 51.8% approving a 3.5% surtax on incomes above $250,000. But the claim that the tax is needed to fund schools was later disproved by Gov. Ducey, who boosted school funds and teacher pay despite cutting taxes.

The ballot measure is also a way to evade the veto of current Gov. Hobbs. Republicans hold two-seat majorities in Arizona’s House and Senate, and a simple legislative majority can put a measure before the public. Once approved by voters, the measure becomes law and can’t be vetoed.

Eliminating the income tax is far better than even a low 2.5% rate, because it is harder politically to revive the tax than raise the rate. Let’s hope voters get a chance to make their preferences known next year.

My Comments:

The Governor, Katie Hobbs is a Democrat but the state Congress is majority Republican. The Republicans control a majority of state senators and members of the lower House. So, again, you have a divided government.

West Virginia is considering going without an income tax as well and substituting a sales tax like Texas does. No idea if it will be adopted as they are just discussing it, trying to figure out what form it will take.

https://www.washingtonexaminer.com/poli ... ssions-end

West Virginia legislature passes budget, fails to pass income tax reduction at session’s end

Whether it’s in on tax or sales tax, it’s the rich who will end up paying more.

Sales tax tends to be pretty regressive. It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.

[Sertorio]

Sales tax tends to be pretty regressive. It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.

If you rank goods and services according to how necessary or how superfluous they are, with high tax rates for luxury goods and low rates for essential goods, a sales tax can become very progressive indeed. It is regressive only if you apply a flat rate to all goods and services.

[SteveFoerster]

Sales tax tends to be pretty regressive. It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.

If you rank goods and services according to how necessary or how superfluous they are, with high tax rates for luxury goods and low rates for essential goods, a sales tax can become very progressive indeed. It is regressive only if you apply a flat rate to all goods and services.

Which is why I said, 'It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.'

[Sertorio]

Sales tax tends to be pretty regressive. It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.

If you rank goods and services according to how necessary or how superfluous they are, with high tax rates for luxury goods and low rates for essential goods, a sales tax can become very progressive indeed. It is regressive only if you apply a flat rate to all goods and services.

Which is why I said, 'It's possible to design one that exempts store-bought food, medicine, etc., but you have to remember that West Virginia doesn't have a lot of rich to eat in the first place.'

You focused on the lower end of the scale, my statement was directed at all goods and services.