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.
