Senate panel OKs bill to flatten Ariz. income tax

[The Northerner]

PHOENIX -- A "flat tax" bill to rewrite the state individual income tax is nearing the finish line at the Legislature, setting the stage for changes that would have the Arizona's wealthiest taxpayers paying less while nearly nine of every 10 Arizonans pay more.

The Senate Finance Committee approved the Republican-sponsored bill on a 4-2 party line vote on Thursday. The House has already approved a version of the bill.

Major changes in the bill include eliminating the standard deduction, dependent exemptions and most other state deductions while flattening the current five rates into one lower rate of 2.13 percent. Current rates range from 2.59 percent to 4.454 percent depending on income levels.

The changes would be phased in over three years starting in 2013. It would not affect federal income tax paid by Arizonans.

Read more: http://www.forbes.com/feeds/ap/2011/03/25/business-az-xgr-flat-tax_8374937.html

[Newsjock]

1. Even Forbes isn't even trying to hide it anymore

Right there in the lead sentence: we're screwed. And what are we going to do about it?

[SkyDaddy7]

2. Weel, maybe if it passes in Arizona...

All middle class knuckleheads running around screaming "flat tax" will actually realize their taxes will go up big time & maybe change their minds!

This does suck!

[whoneedstickets]

3. 9 in 10 Arizonans get a tax hike.

Both chambers of the state legislature and Gov office GOP. No way to deflect responsibility on this. We'll see who is paying attention in 2012.

[Angry Dragon]

5. 'The changes would be phased in over three years starting in 2013'

People won't notice until after 2012 so it will not register until after the 2012 elections

[dbackjon]

4. Our morons strike again

I feel bad for those that will have to pay more. For me, it is close to neutral, but I am not a fan of flat taxes. Arizona needs to RAISE taxes for all to keep the state operating.

[sasha031]

6. how can people be so stupid to vote for republicans

A legislative budget staff analysis indicated that taxpayers with federal adjusted gross incomes below $100,000 generally would pay more state income tax under the bill while those with higher incomes would save money. Taxpayers with incomes below $100,000 account for 88 percent of state income tax filers, according to the analysis.