Is Phoenix a tax-friendly city?
Phoenix is the capital city of the American state of Arizona. Recently, Kiplinger has released a complete guide on the details of the State-by-State tax rules. In that guide, Arizona has found itself on the list of the top 10 tax-friendly states. The state occupies the ninth position in the matter of tax-friendliness for individual citizens and business houses. This ranking position has been achieved by considering the rules and regulations regarding income tax, property tax, sales tax and a few more. Moreover, the record revenue earned in the last fiscal year has been also considered as an important factor.
Essential steps and their immediate benefits
Governor Ducey of Arizona has declared that they try to keep the tax structure simple and fair while hardworking citizens can keep large shares of their income with them. Since 2015, the tax structure has been simplified and different tax rates have been reduced in each and every year.
The Rainy Day Fund has reached a record of $1 Billion amount and the surplus is $1 Billion. As the economy is booming rapidly, in the fiscal year of 2019, the State General Fund Revenue has reached $11.23 Billion which is considered the highest in recent years.
In Arizona and Phoenix, hundreds of new residents are migrating every single day and these locations have experienced huge investments in sectors like public education, public safety and infrastructure. In the budget of the year 2019, there was a proposal of $542 million investment.
Current tax reform plan
Following the rules of President Trump’s Tax Cuts and Jobs Act, Amazons’ budget for the fiscal year of 2020 has been created for providing various tax benefits. Thus, for the first time in the last 30 years, you will observe the revenue-neutral tax reforms that will surely increase the standard deductions of the state and it will match $12000 of Federal Standard Deduction for individual filers and $24,000 for married couples.
Families will be benefitted from $100 child tax credit. There is a new charitable tax deduction that will be applied to the donations meant for non-profit organizations and charities.
Finally, a median income taxpayer will gain an annual relief of $135 due to these proposed tax reforms of 2020.
Being a reputed international tax consultancy service in Toronto, at The Accounting & Tax, we deliver essential recommendations to our clients residing in Phoenix so that they can reap each and every tax benefit periodically without facing any issue.
