Arizona Senate's Bill: Cut tax for top 12%, Hike for everyone else

[ThoughtCriminal]

The ever popular far-right darling: Flat Tax

http://www.azcentral.com/business/consumer/articles/2011/03/25/20110325arizona-flat-income-tax-hike.html

"If Arizona shifts to a one-size-fits-all income tax, it would raise taxes for 88 percent of Arizona filers while cutting them for the 12 percent with a taxable income of more than $100,000 a year, a legislative analysis shows."

"Proponents say the tax - in this case, a 2.13 percent rate - is a fair way of imposing an income tax because everyone pays the same rate. Currently, Arizona has a progressive tax rate, ranging from 2.59 percent to 4.54 percent. It increases with income level.

Opponents say House Bill 2636 would increase the tax burden on lower- and middle-class taxpayers while giving the wealthy a tax cut"
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As an added bonus, despite the higher taxes on 88% of Arizona tax payers the proposed change does nothing to improve the state's dismal fiscal problems since the revenue is offset by the tax cuts for the wealthy.

[drm604]

1. WTF?

It's like an epidemic of some sort of insanity. :banghead:

[DJ13]

2. It's like an epidemic of some sort of.......

...... parasite thats determined to kill its host.

[Paradoxical]

3. I will pie Russell Pearce in the face if you guys cover my bail.

[ThoughtCriminal]

4. More! Here's how bad it is for Arizona

http://www.azdailysun.com/news/local/state-and-regional/article_aa0e9c0c-72f1-516d-aa74-7f44aa2ff9e4.html

Estimates from the Arizona Dept. of Revenue:


The legislation, approved on a 4-2 party-line vote with Republicans in the majority, would replace the state's graduated income tax structure with a single flat rate.

[williesgirl]

5. And the assault continues. When are middle & lower class Americans going to take to the streets to

protest enmasse? It's happening everywhere and needs to be stopped. rec'd

[Monique1]

6. I am ready!

Tell me when and I'll bring my cane and protest.

[hfojvt]

7. I don't see how that can be revenue neutral

I guess they eliminate the standard deduction and personal exemption, but in Kansas, that is less than $6,000 for a single person. So if you take 2 million tax payers times $8,000 *.0213 that's $340 million. A fair amount of extra revenue, but then they are losing .46% on income above the exemption, and losing over 2% for people paying the top rate. In Kansas, you start paying the top rate pretty quick, at about $35,000. Then there's the income over $100,000. I remember reading estimates of a 1% tax surcharge on incomes over $100,000 would bring in over $180 million. So cutting 2% from them should lose over $360 million.

I suppose they get rid of tax exemptions on retirement income and social security.

The amazing thing is that this plan would create $350 million in tax increases for those with lower incomes and $350 million in tax cuts for those with higher incomes and proponents say the plan "is a fair way of imposing an income tax".

Taking from the poor and giving to the rich is their idea of "fair". :crazy: