January 28, 2020

Arizona Center for Economic Progress: In Search of a State Budget That Creates Opportunity for All

ITEP Work in Action

While all families in Arizona help pay for health, education and public safety through state and local taxes, low-income and middle-income families pay a larger portion of their income in
taxes than do wealthier families.

When all types of state and local taxes are combined—income, sales, and property—families with income in the lowest 20 percent pay twice what families in the top 1 percent do—$12.95 for every
$100 of income and $8.49 for middle income families compared to $5.91 for the highest income families. Sales taxes make up the largest portion of the taxes paid by those with the lowest incomes.
Families with the lowest incomes in Arizona also pay more of their income in state and local taxes than do the lowest income families in all neighboring states.

More than one in four people of color in Arizona live in poverty. Ensuring that households with high incomes pay a larger share of their income in state and local taxes than households with lower
incomes can help overcome racial and ethnic inequities and build an economy whose benefits are more widely shared.

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