Tags: 2020 Elections | arizona | taxes | income tax

Arizona Votes for Hefty Tax Hike on Highest Earners

doug ducey speaks from behind podium
Republican Arizona Gov. Doug Ducey (AP Photo/Ross D. Franklin, File)

By    |   Friday, 06 November 2020 10:05 AM

Arizona voters are projected to have approved a massive increase in state income taxes on high-earning residents, The Hill reports.

The ballot measure in question, Proposition 208, or the Invest in Education Act, imposes a 3.5% surtax on incomes above $250,000 for single filers and $500,000 for joint filers. This would increase the top state income tax from the current 4.5% to 8%. 

The Associated Press projected the approval of the measure Thursday evening, with 52% voting in favor and 48% voting against.

Arizona's joint legislative budget committee estimates the measure will raise $827 million in the first year of its implementation. The extra tax revenue would be used to fund various education-related items.

This latest tax hike would make Arizona the state with the 10th highest income-tax rate in the country, whereas it previously had the 11th lowest, according to the Tax Foundation, The Wall Street Journal reported in October.

Sen. Bernie Sanders, I-Vt., Democrat politicians in the state, and labor unions supported the measure, claiming it would allow for necessary investments in education.

Arizona Gov. Doug Ducey and business groups, on the other hand, opposed the measure, arguing it would hurt small businesses that are taxed on their owners' returns through the individual code.

Meanwhile, Democrat presidential nominee Joe Biden has planned to increase income tax rates on the federal level, proposing a top income tax rate of 39.6% for those earning more than $400,000, along with an increase in the capital gains tax.

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Arizona voters are projected to have approved a massive increase in state income taxes on high-earning residents, The Hill reports. The ballot measure in question, Proposition 208, or the Invest in Education Act, imposes a 3.5%...
arizona, taxes, income tax
247
2020-05-06
Friday, 06 November 2020 10:05 AM
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