New tax benefits may be rolling out in the near future for self-employed residents of Arizona, a tax break designed to remedy a near $1000 increase in federal government payments. The tax break sounds as if it might prove to be a financial relief to self-employed Arizonans should it become official.
The State House recently approved legislation that allows for self-employed individuals to deduct upwards to 2% of what their earnings prior to calculating their payment on state income taxes. But while this may be welcomed news for the self-employed, it’s actually better news for the federal government. In actuality the savings could amount to as little as roughly $200 cash for many.
The original legislation was modeled differently, primarily dealing with only property tax breaks. Some financial analysts have considered Arizona’s property tax system as poorly befit to the economic development of the state overall. Reformatting the tax system is an attempt to put the local economy back on track.
Those close to the situation are indicating that the 2% deduction in earned income will adversely help the bounce rate of net earnings. It’s yet to be determined if the change will ultimately assuage the ailing state economy.