Some Arizona Senate Republicans are arguing for an additional $250 million tax cut, on top of Gov. Doug Ducey’s proposed $200 million.
But unlike Ducey’s plan for a permanent $200 million cut — which over three years could increase to $600 million — the additional tax cuts would be for one year only.
GOP Sen. David Gowan says revenues are running far ahead of anticipated expenses.
"As the economy gets a little stronger and stronger, and we're seeing the dollars come back. We just thought it would be prudent to give back to the people who paid the taxes a portion of what they keep giving in," Gowan said.
However, other Republicans like Senate President Karen Fann say the money could instead go towards paying off debt from the state’s Public Safety Retirement System.
Democratic Senate Minority Leader Rebecca Rios says it was COVID-19-related federal aid that helped boost the state’s revenue. She says that money should have gone to helping those affected by the pandemic instead of being used for tax cuts.
