Republican state senators have approved three proposals to cut individual income taxes in light of a nearly $2 billion revenue surplus.
Gov. Katie Hobbs could be poised to veto the measures, as they would cut funds needed to fulfill her budget.
One bill would require the Department of Revenue to issue a $200 dollar tax rebate to individuals, and double that to couples filing jointly and single heads of households. That would reduce the state’s surplus by more than $900 million.
Another bill introduced by Sen. J. D. Mesnard would reduce the income tax rate based on the state surplus after factoring in population growth and inflation.
That concerned Democratic Sen. Mitzi Epstein as she said the rate would not automatically go back up, even when facing a recession.
The last measure is basically the same as Mesnard’s but would get sent to voters in 2024, instead of Hobbs.
All three now move to the House.
