Arizona Center for Economic Progress: More Money for Public Education Will Benefit Arizona Small Businesses
ITEP Work in ActionMost small business owners will continue to be taxed at some of the lowest personal income tax rates in the nation. Small business owners whose profits and wages from their businesses
are high enough to be in the top 1% of income earners will still have the first $250,000 they earn as individual filers or the first $500,000 they earn as married filers taxed at some of the lowest individual income tax rates in the nation. It is only the amount those small business owners earn in excess of $250,000 (individual) or $500,000 (married) that may be subject to the proposed new surcharge. The effective tax rate for Arizona small businesses and individuals who fall within the top 1% of earners – the only ones who will be impacted by Invest in Ed – will still be less or the same as the effective tax rate of those in the top 1% in 25 other states and below the national average.