Posted on 04/21/2022 8:37:56 PM PDT by BenLurkin
Arizona’s high court has pulled a ballot question from the November election that could have erased the state’s largest-ever income tax cut.
The Arizona Supreme Court ruled Thursday that a veto initiative to repeal a gradual change from Arizona’s progressive income tax to a flat 2.5% wasn’t appropriate for the ballot process. The court didn’t immediately offer an analysis of the opinion.
Lawyers representing the Arizona Free Enterprise Club (AFEC), a taxpayer advocating nonprofit, argued before the court that the state’s constitution bans government functions such as tax cuts from being challenged at the ballot box.
Passed in 2021, the law reduced individual income tax rates for all taxpayers by gradually reducing the state’s four income tax rates to one 2.5% rate by 2022. With the court's opinion, the rate is now in effect.
(Excerpt) Read more at thecentersquare.com ...
What about States that have a 0% State Income Tax?
A flat tax is the best, most fair tax system out there. Everyone participates at the same rate. You’d think even an honest lefty would approve.
Yup. They’re patting themselves on the back with 2.5% lol
Those who don't pay are incentivized to raise the income tax and to increase government spending from that.
Sales taxes are taxes everyone pays. That is the most fair, when all adukts also have the ability to vote.
Sound pretty flat to me,,,
Yep, 0% is pretty flat too.
It isn’t the lowest. The lowest rate is ZERO and several states have no income tax
Actually, the fair tax works the best. The fair tax gives a cushion for lower tax payers and also allows it to the wealthy, but anything beyond the basic allowance is taxed at the flat rate. Side note, value added taxes are BAD. They create more fraud than ever. I was an accountant in a value added country.
Regarding ‘fair’ tax... from my home page
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I proposed a Shallow Exponent Flat Tax.
https://freerepublic.com/focus/f-bloggers/4006199/posts
Something like Tax = 10% X {[Income]^1.05}
but with the flat tax coefficient more like 2.4 and the exponent more like 1.13......
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Yes, but some of those states have very high property taxes and/or sales taxes.
Irrelevant! The fact stands that Arizona's is NOT the lowest state income tax. That "some" of those other states with a zero rate might have a higher tax on, e.g., chocolate-covered cherries or silk underwear is irrelevant to the discussion of "What state has the lowest state income tax?"
The headline contains disinformation!
Regards,
The “Fair” Tax has yet to be implemented anywhere.
As a retiree with a [minor] sta$h that has already been multiply taxed, I don’t find the theory to be fair.
Like Communism, it’s likely that it’s just that the “right” people are not running it.
Technically, if your income tax is zero, that means you don’t have an income tax and can be excluded from the income tax ranking. :P
Arizona should make the state a sanctuary against federal taxation.
then they would adhere to the original intent of the Constitution and pay their percentage of the budget out of state tax money raised however they see fit in the state.
Flat income tax is not as evil as a graduated but it’s still evil.
A retail sales tax is not even evil though. It’s fair.imho.
All income taxes should be constitutionally set, and require the same hurdles to change as any other constitutional amendment.
‘What about States that have a 0% State Income Tax?’
I live in Arizona. I’ll see the 2.5%.
I lived in New Hampshire - 0% state income tax. But we had some of the highest property taxes in the country.
I lived in Texas - 0% state income tax. But we had some of the highest property taxes in the country.
Arizona has very low property taxes. No need to denigrate 2.5% state income tax when you pay a lot more in property tax.
And think about what happens when you retire. You’re still paying that high property tax but not the state income tax except on lower retirement income. Those with only Social Security will pay almost nothing.
Exactly. Just as flat and by definition lower.
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