New Study Says AZ Budget Easy to Balance

A new study says there is an easy alternative to cutting education and human services in order to balance the state budget. A report by the think tank United for a Fair Economy suggests flipping state tax structures so that the wealthiest pay the rates that low income wage earners are now paying, and vice versa. That would immediately wipe out Arizona’s budget shortfall.

Report co-author Karen Kraut told Public News Service that it’s a misperception that the wealthy pay their fair share in taxes at the state and local level. She says just about every tax except the federal income tax hits the lower and middle class harder than the wealthy.

Kraut says the top 20% of Arizona taxpayers pay 5.5% of their income in state and local taxes while the lowest income taxpayers pay 12.5% of their income. Reversing that would raise $14 billion dollars for the state.

The study is available at www.faireconomy.org.