Arizona lawmakers are seeking up to $400 million in tax cuts to go along with the nearly $10 million in tax reforms that Gov. Jan Brewer already has signed into law this year.
But Republican legislative leaders, who are in budget negotiations with the Brewer administration, say they are willing to accept $20 million to $30 million as a compromise, according to the Arizona Republic
Proponents of additional tax reforms say more cuts will give Arizona an economic boost.
“You should always look at a budget cycle that includes tax reform,” said Senate Majority Leader Andy Biggs, noting that tax cuts actually increase revenue over time. But he said any cuts should be accompanied by spending reductions to give them time to take effect.
The Legislature passed a $538 million tax cut package last year that is just beginning to phase in, said Biggs.
Despite predictions of sluggish economic growth in the near term, Brewer last week reported the state took in $52 million more than was forecast in the first nine months of the fiscal year ending June 30.
In addition, Brewer said, “Arizona’s gross state product will grow at a healthy rate of 6 percent annually in 2014 and 2015.”
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