With new state budget, Arizona workers won’t have to pay taxes on tips

The Arizona Center for Economic Progress, a nonpartisan advocacy group, cautions that this short-term relief through $1.4 billion in tax cuts over the next several years could prove costly over time and reduce the tax revenue available to invest in state priorities.

“Arizona has lost nearly $11 billion to tax cuts over the past 30 years, while the state’s tax system remains one of the most regressive in the nation,” the group shared on Friday after the budget’s approval. “The state cannot keep cutting the revenue needed to fully fund child care, public K-12 education, health care, housing, water, and food assistance and still expect to build a strong, competitive economy."