In a few days, AZ will implement a flat individual income tax structure, one year earlier than originally anticipated. According to the Office of the Governor, this new flat tax gives AZ the distinction of having the lowest State tax in the USA.
Enacted in June 2021, S.B. 1828 consolidates AZ individual income tax brackets.
S.B. 1828 establishes tax triggers that made the speed of the 2.5 percent flat tax phase-in contingent upon the speed at which AZ reached specified revenue targets.
AZ General Fund revenues (excluding the beginning balance in Fiscal Year 2022) amounted to just under $17 Billion and, because AZ reached the final revenue target sooner than anticipated, the rate schedule will convert directly from a two-bracket structure (with rates of 2.55% and 2.98%) to a flat rate of 2.5%.
The Governor estimates that tax-cut will save families $350 a year. I personally do not know anyone who is so wealthy that a tax decrease of half of one percent works out to an annual savings of $350 … maybe you could explicate this math problem?
Anyway, it’s a step in the right direction. Now we just need abolish the Federal Reserve. And then every one of the alphabet agencies.
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