- June 26, 2021
- Posted by: Stratford Team
- Category: Business
Rep. Andrés Cano, D-Tucson, right, speaks with Arizona House Speaker Rusty Bowers, R-Mesa, during a vote on the Arizona budget Thursday, June 24, 2021, in Phoenix. (AP Photo/Ross D. Franklin)
Republican state representatives voted Friday to allow the owners of small businesses — and anyone who organizes their finances for tax purposes as one — to escape paying the voter-approved income tax surcharge on the wealthy to fund education.
And that would cut hundreds of millions of dollars from what is supposed to go to schools.
SB 1783, approved on a 31-25 party-line vote, creates an entirely new alternate tax category for small business, generally those now organized in a way so their income passes through to their owners. That means the owners now compute what they owe the state on their personal income tax forms, after deducting all business expenses.
Proposition 208, approved by voters by a 51.7% margin in November, imposes a 3.5%…
