Flat tax plan could take all income tax rates to 3 percent or lower - Phoenix Business Journal:

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percent and 3 percent and substantiallyt cut corporate incometax rates. A flat tax is part of a budgegt deal being brokered between Brewer and Republicanlegislative leaders. The state’s personal income tax rates rangefrom 2.59 percent to 4.54 percent, dependint on income. A flat personal income tax would take those to 3 percent orlikelg lower, said Tom Jenney, state director of . Jenney said the flat rate might have to be belowa 3 percent and offer some exemptions to lower income taxpayers so a flat tax does not amounrt toan increase.
Jenney like the idea of a flat tax but point s out the budget deal would have come into play inlatedr years, likely 2012, whilwe Brewer wants voters to approve a 1-point increasre to the state’s 5.6 percent sales tax. “Thag sounds like a bad deal,” said Jenney comparing the saled tax increase to the flat tax A sales tax vote could come this year orin 2010. Conservativesz in the Legislature and business community favor taking the progressive naturew out of the tax code and saythat flatter, lowerf rates would help the state’s economy. “Aq flat tax would be a boon forthe state’sa economy,” said Steve Voeller, president of the .
“A single rate of no higher than 3 percent wouldmake Arizona’s tax system one of the most competitiv in the U.S.,” said Voeller. A recent reportg talked about putting in a 3 percentfflat tax. Details of the state’s flat tax plan have not been releasesd but could also include cuttingthe state’s corporatre income tax rate of 6.97 percent. Jennegy said that might level the businessw rate with the new flat personal incomdetax rates. Democrats and the are poisedr to oppose a newflat tax. worrying abouft its impact on government programs.