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Arizona Senate votes to shield business owners from tax hike

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Posted at 4:51 PM, Jun 29, 2021
and last updated 2021-06-29 19:51:53-04

PHOENIX (AP) — Arizona Senate Republicans have voted to further shield some of the state's wealthiest taxpayers from a tax increase approved by voters last year to boost education funding.

Republicans voted to send the measure to GOP Gov. Doug Ducey in a party-line vote on Tuesday.

If Ducey signs it as expected, income from estates, trusts and business profits won't be subject to a voter-approved 3.5% surcharge.

School funding will be reduced by several hundred million dollars per year.

Republicans said the measure is needed to ensure Arizona remains an attractive place for business owners to live.

Democrats say it will harm schools and undermine the will of the voters.