The Associated Press
PHOENIX Ä The state income tax cut Gov. Fife Symington calls the centerpiece of his proposed budget would be tilted heavily in favor of low-income taxpayers, according to details of the proposal released by Symington.
He said Wednesday the tax cut Ä which he calls the Middle Income Tax Reduction Act Ä is intended as another step toward eliminating the income tax on individuals.
''This can be done,'' he said. ''It must be done, and this administration and this legislature must lead the way in denying future state governments the mechanism and the temptation for returning to the days of bloated bureaucracies and fiscal sloth.''
Under the proposal outlined by Symington as he released details of his proposed budget for the next fiscal year, individual taxpayers with incomes of less than $10,000 would have their tax rates reduced by 41.5 percent, from 3.25 percent to 1.9 percent. Individuals with taxable incomes of $150,000 and over would have their rates trimmed by only 1.4 percent, to 6.8 percent from 6.9 percent.
As a result, the average individual with an income of $10,000 or less would see a reduction of $7.01, from $17.03 to $10.02; and the average taxpayer with an income of between $100,000 and $499,999 would see a reduction from $6,737.72 to $6,280.21.
The proposal also would protect cities and towns from revenue losses by increasing the share of the state income tax they would receive.
Read Next Article