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Arizona panel advances measure cutting Proposition 208 taxes

Posted at 2:34 PM, Mar 24, 2021
and last updated 2021-03-24 17:34:25-04

AN ARIZONA HOUSE COMMITTEE HAS ADVANCED A MEASURE THAT WOULD LET SUCCESSFUL BUSINESS OWNERS AVOID PAYING A 3.5% INCOME TAX HIKE APPROVED BY VOTERS LAST YEAR TO BOOST SCHOOL FUNDING. REPUBLICANS ON THE HOUSE COMMERCE COMMITTEE ADVANCED THE BILL IN A PARTY-LINE VOTE WEDNESDAY. — PHOENIX (AP) — An Arizona House committee has advanced a measure that would let successful business owners avoid paying a 3.5% income tax hike approved by voters last year to boost school funding. Republicans on the House Commerce Committee advanced the bill in a party-line vote Wednesday.

The measure would eliminate a third or more of the funding from last year's Proposition 208, which boosted taxes on income above $250,000 for individuals and $500,000 for couples.

The bill would affect the owners of certain types of businesses that don't pay corporate taxes. Instead, their profits are taxed through the owner's income tax returns.