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If things were better, it would be worse

Some lawmakers are kicking around the possibility of delaying the implementation of the phased-in tax cuts that were part of the 2011 Arizona Competitiveness Package. But thanks to the sluggish economy, the fiscal impact of those cuts is smaller than JLBC anticipated when the bill was passed.

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Pending tax cuts scrutinized as debt rises (access required)

Pending tax cuts scrutinized  as debt rises <span class="dmcss_key_icon"><img alt="(access required)" src="/files/2013/12/lock1.png" border=0/></span>

Three factors have consistently been cited as big contributors to the estimated $1 billion deficit the state will face in fiscal year 2016 and some lawmakers are urging action on the one they actually control — tax cuts from a three year-old economic stimulus bill.

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Key lawmakers scaling back tax cut measure to avoid veto (access required)

An ambitious economic development bill meant to be a follow-up to the 2011 Arizona Competitiveness Package will jettison some of its more contentious provisions due to the Ninth Floor’s concerns that it will cost too much money.

But lawmakers and business groups pushing the bill say they’re optimistic that an agreement will be reached with Gov. Jan Brewer to cut state taxes on capital gains — the core component of the bill — even if they’re unable to achieve the outright elimination many GOP legislators sought earlier in the session.

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