Possible Arizona tax cuts could mean trouble during an economic downturn
There are a number of proposals at the Arizona Capitol to reduce taxes — from eliminating the sales tax on groceries or diapers and feminine hygiene products to exemptions on state income taxes for new businesses.
Any reduction in taxes obviously means a reduction in the amount of money the state brings in. But, voters in November also approved a requirement for any future ballot measure that would raise taxes to have 60% support, rather than a simple majority. And, the Legislature needs a supermajority to raise taxes itself.
This all raises the question of what may happen during the next economic downturn, when the state may be looking for new sources of revenue.
Jim Rounds, president of Rounds Consulting, joined The Show to talk about it.