Taxes

Pandemic-era tax cut pinches Arizona budget

It appears to the first to face revenue projection issues of the more than two dozen states that passed tax cuts.
The Arizona Capitol in Phoenix. (AP Photo/Ross D. Franklin, File)

Arizona appears to be the first state so far to face budget problems caused by sweeping pandemic-era tax cuts.

Fiscal Year 2024, which ends June 30, is the state’s first with a 2.5% income tax rate. Income tax collections have been far lower than expected, forcing state analysts to downgrade their revenue forecast for future years.

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