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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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Jobs bill survives late Senate debate (access required)

Despite strong objections from Democrats and some Republicans, the Senate leadership Tuesday evening pushed ahead to debate the jobs bill, a maneuver that moves the business-tax-cutting legislation closer to passage.

Having cleared the debate, the bill now goes to the full Senate for a formal “aye” or “nay” vote, which is expected on Wednesday, Feb. 16.

Whether the measure has sufficient support to pass — it needs only 16 votes — is uncertain.

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