Arizona is like most states in that it has both a state income tax and a state sales tax. We believe that this is not only unnecessary but that the state could benefit greatly if the state income tax were completely abolished.
There are currently 7 states that operate without a state income tax right now and some of them are big states (Florida, Texas, Washington). If a huge state like Texas or Florida can figure out a way to fund their expenses without a personal income tax then why can’t Arizona?
These states do not offer less government services than other states either. According to government public records, Washington ranked 8th, Florida ranked 10th, and Texas ranked 18th best in the country on standardized tests. Additionally, these states consistently perform well in terms of infrastructure and transportation that is funded or operated by the government.
There are additionally 2 more states that do not have a state tax on income from a job. They only tax investment income.
There are several other states that are either considering abolishing their state income taxes or that have already begun to. Kansas has implemented revenue triggers that will gradually lower the state income tax to 0%. North Carolina has enacted a similar approach to abolishing their income tax. Maine and Virginia are hoping to follow suit.
States that have no income tax tend to have better economies than those that do not. Texas had the fastest job growth after The Great Recession. High earning individuals often move to avoid costly state income taxes. In some cases these taxes can reach 10%. Even professional sports players that are free agents consider state income taxes when they are considering offers from different teams.
The state income tax is ultimately an issue of liberty. How free are you if your state government gets to take their percentage off the top of every dollar you earn? Doesn’t it make far more sense for them to take their taxes off of every dollar you spend?