Do You Think Arizona will ever Get Rid of State Income Tax? (sales, 2015)

[knicksin8]

Any thoughts?

[AZJD]

What would be a reason for that?

Arizona is a dirt cheap state to live in. Our state tax rate is 1/2 of California's. And we have cheap property taxes. And cheap housing costs. Yet are a 1 HR flight from major coastal demand cities in California.

If you're struggling in AZ and think AZ is expensive, you've never experience living in California, or in state with bad weather like Illinois yet has ridiculous property taxes, or even coastal Florida with high property tax and hurricane insurance costs.

We have it beyond easy in Arizona.

[MalteseJane]

Where would their income coming from if no income tax ? The money to run the State has to come from somewhere. Sales tax will never be enough.

[stevek64]

They could but I don't think they will. Major changes like this are hard for people and gov to accept on many levels for various reasons/$.

As for where the shortfall in revenue would come from if it ever did come to pass, sales tax and various fees/revenues, etc. like other states do that have no state income tax would occur. From one pocket to another as in any revenue raising game. And some groups benefit more/less than others depending on one's income source/spending habits.

[knicksin8]

I read this 2015 article which is why I ask:

Forbes Welcome

[DrDog]

Originally Posted by knicksin8

I read this 2015 article which is why I ask:

Forbes Welcome

Interesting that I haven't seen anything about that locally in Arizona.

[JGMotorsport64]

Ducey made it a campaign piece when he ran we'll see.

[Valley Native]

Originally Posted by AZJD

What would be a reason for that?

First and foremost, to make it more business friendly. Look at states like Washington and Texas which have no state income taxes, and all the large corporations headquartered in cities like Seattle, Dallas, and Houston. Nevada with no state income tax receives a large share of its revenue from gambling and sales taxes. Arizona has a definite lack of big business, which isn't good for the economy in general. Sure, we can keep boasting about how cheap it is to live here ... however, in reality, some things are actually quite expensive (vehicle license fees, vehicle maintenance, and some utility costs to name a few). Eliminating the income tax would be one less hassle for individuals, and more encouraging for businesses to locate here.

Originally Posted by MalteseJane

Where would their income coming from if no income tax ? The money to run the State has to come from somewhere. Sales tax will never be enough.

Many things that are run by the government can and should be diverted to private enterprise. Health care and education are two big expenditures which would save the state a lot of money if they were turned over to the private sector. We do need some taxes for basic government functions, but they should be able to be paid for by sales taxes if we cut out much of the unnecessary spending.

[jamies]

Originally Posted by MalteseJane

Where would their income coming from if no income tax ? The money to run the State has to come from somewhere. Sales tax will never be enough.

Maybe they could limit the spending and waste? Wow! What a concept.

Never happen, gotta fund those gold plated pensions and healthcare for govt workers.

[JGMotorsport64]

Originally Posted by jamies

Maybe they could limit the spending and waste? Wow! What a concept.

Never happen, gotta fund those gold plated pensions and healthcare for govt workers.

Govt workers pay into their pensions, the state takes around 10% of their income. The state needs to do a better job investing that money.