/ Modified may 18, 2021 2:25 p.m.

Arizona GOP budget deal envisions massive income tax cut

Plan would implement a flat 2.5% income tax that cuts $1.5 billion a year from state revenue

360 ducey jan 2021 Arizona Governor Doug Ducey sits for an interview with Arizona 360 in his office at the Arizona Capitol on Jan. 13, 2021.
AZPM Staff

A budget deal struck between Republicans who lead the Arizona Legislature and Gov. Doug Ducey implements a flat 2.5% income tax that cuts $1.5 billion a year from state revenue.

It also keeps higher earning taxpayers from directly having to pay a new 3.5% surcharge to fund schools by capping their maximum tax at the current top rate of 4.5%. and using general fund cash to pay schools the difference.

The deal also cuts commercial property tax rates, pays down some state pension and other debts and will increase the state’s super-low weekly unemployment benefit from $240 to $320 a week.

Democrats oppose the tax cuts.

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