The Tax Cuts and Jobs Act passed by President Trump and Congress is a BIG WIN for Arizona workers, families and job creators. The TCJA provided long-overdue tax relief, cutting both individual and corporate rates while simplifying the tax code.
The downside to all of this good news is the Arizona Department of Revenue has released a conformity report showing that Arizona taxpayers will end up paying as much as $250 million more in state income taxes next year as a result of the federal changes, and that number could climb to over $300 million the following year.
The impending tax increase has not been caused by any direct action taken by Arizona policy makers. Arizona automatically conforms its state tax code to the federal tax code. Because the federal tax code has now closed several exemptions, more revenue will be going to the state treasury.
TAKE ACTION! If the Arizona Legislature does not take action, conformity with the federal tax code will raise our state income taxes. We must urge Arizona's legislators to reduce state income tax rates and return the excess money to our hardworking taxpayers.