蜜柚直播

There is no reverse procedure for times of deficit.

Senate Bill 1577, which passed on a preliminary voice vote but then failed a roll-call vote Monday, would have required an annual determination of the 鈥渟tructural surplus.鈥欌�� That鈥檚 the amount of ongoing state revenues above anticipated ongoing expenses, adjusted for population growth and inflation.

The 蜜柚直播 Department of Revenue would then have had to permanently reduce the state鈥檚 income tax rate equal to half that figure.

That bothered Rep. Matt Gress, R-Phoenix, who said it would put tax policy 鈥渙n autopilot.鈥欌��

Gress, who was the budget director under former Gov. Doug Ducey, said the flaw is that it looks only at prior revenues, without considering future obligations. That could create future budget deficits, he said.

It also would tie the hands of future lawmakers, he said, and wouldn鈥檛 leave wiggle room for cutting other taxes.

鈥淚f this had been in place, we would not have been able to implement one of the largest property tax rate reductions in modern 蜜柚直播 history,鈥欌�� Gress said. That included cutting taxes for businesses by altering the basis on which the are taxed as well as getting rid of the state property tax for education.

What the measure would have meant in actual dollars is difficult to calculate.

Legislative budget staffers said there would have been no tax break for at least the next three years.

That鈥檚 because the 2.5% flat individual income tax enacted two years ago reduced state revenues from what they would have been, changing the starting point for future calculations.

But the analysts presume that, at some point in the future, tax collections will grow faster than inflation and population. Under the bill, a $200 million structural surplus, for example, would have required reducing revenues by $100 million, something that would cut the income tax rate from 2.5% to 2.46%.

Rep. Neal Carter, R-San Tan Valley, said the legislation showed 蜜柚直播 citizens that lawmakers are acting responsibly with their money.

鈥淚t really comes down to how we treat money,鈥欌�� he said. 鈥淒oes the money belong to us or does it belong to the citizenry? Is it appropriate to be spent on essential governmental functions, certainly, or is it appropriate for the citizenry to be able to grow the economy with it?鈥欌��

Carter said it is one thing for businesses and individuals to have, and retain, surpluses.

鈥淭he money can be spent by your family,鈥欌�� he said. 鈥淚t also can be reinvested in business.鈥欌��

The difference here, said Carter, is that the government itself doesn鈥檛 really generate money.

鈥淭he money that鈥檚 sent to it is sent to it in trust to be spent on essential government services for the people,鈥欌�� he said. 鈥淎nd so once those are fully funded, any monies that is collected above and beyond that amount are effectively over-collected and really belong to the people.鈥欌��

Sen. Mitzi Epstein, D-Tempe, found fault with it when the bill when it was approved earlier this year in the Senate.

What concerned Epstein is that is was a one-way ratchet: Once the rate is reduced, it would not automatically go back up 鈥� even if there were a recession leaving the state without sufficient revenues.

Any move to increase the tax rate to deal with a future deficit would require a politically difficult two-thirds vote of both the House and Senate and approval by whoever is governor at the time.

Taxes also could be increased by voters at the ballot, but any such measure requires at least a 60% margin of approval.

Sen. J.D. Mesnard, R-Chandler, sponsor of SB 1577, said he was not worried about how the state would weather an economic downturn. He noted the state has a 鈥渞ainy-day fund鈥欌�� that is supposed to equal 10% of the state budget, a figure that currently exceeds about $1.4 billion.

Mesnard also said he is operating under the philosophy there won鈥檛 be that kind of a financial downturn and that tax cuts can help improve the 蜜柚直播 economy.

During Senate debate on the idea, Sen. Priya Sundareshan, D-蜜柚直播, said putting such a provision into statute fails to acknowledge there are times the state needs to use its surplus.

She specifically noted the ongoing problems of drought and its effect on 蜜柚直播鈥檚 share of Colorado River water. 蜜柚直播 had a surplus last year, allowing lawmakers to make a $1 billion commitment over three years to find alternate sources of water, possibly including desalination.

鈥淣one of these problems are going away,鈥欌�� Sundareshan said.