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Gould wants overtime exempted from income tax
Arizona Capitol Reports Staff//February 20, 2008//[read_meter]
Gould wants overtime exempted from income tax
Arizona Capitol Reports Staff//February 20, 2008//[read_meter]
A Senate panel today rejected a proposal to exempt overtime wages from the state income tax.
The bill by Sen. Ron Gould, R-3, would have created an individual income tax subtraction equivalent to any amount of overtime wages.
Overtime wages are defined under the proposal as compensation for work that exceeds 40 hours in a calendar week.
Arizona tax subtractions are taxed under federal laws, but are not subject to the state income tax.
Gould’s bill, S1461, adds overtime wages to the list of current acceptable tax subtractions.
The bill failed on a 2-4 vote.
Sen. Debbie McCune Davis of Phoenix said she could not support the measure without first seeing an analysis showing how such a change in tax structure would affect state revenue.
