AZ House approves new biz, self-employed tax cuts
Published: March 6, 2013 at 3:46 pm
A sharply divided Arizona House has given final approval to a bill lowering the property tax rate assessed on fixtures and other so-called “personal property” businesses own if they expand and add jobs.
The bill also gives the self-employed earning less than about $114,000 a 2 percent tax deduction. The value of the business tax break isn’t known, but the self-employed reduction is valued at $58 million a year.
Rep. Tom Forese says his tax cut for the self-employed is intended to make up to a 2 percent increase in Social Security withholding tax that went into effect Jan. 1. The increase happened when a temporary cut in withholding designed to stimulate the economy expired. Republicans call that a tax hike.
The 32-27 vote sends the bill to the Senate.