Senate panel OKs working poor tax credit, adopted by Governor Ducey

(KYMA, KECY/ AP News) - A Democratic proposal to create a new tax credit for working low-income Arizonans was approved by an Arizona Senate Committee Wednesday.

This was all previously adopted by Governor Doug Ducey as part of his budget proposal.

The $74 million plan is the first tax proposal the Governor has backed in his eight legislative sessions that specifically aims to benefit lower-income workers. Tax cuts Ducey has championed, including a nearly $2 billion income tax cut passed last year, have instead mainly flowed to businesses or the wealthy.

But this earned income tax credit proposal mirrors the federal credit, which provides refunds to the working poor and the proposal would benefit about 577,000 taxpayers, according to the Governor’s office.

The idea is to provide extra cash to working families who could use the money for food, utilities, gas and other necessities.

The Committee’s 7-2 vote sends the bill to the full Senate for consideration.

Democrats are confident it will pass the next step as the same proposal passed the Senate on a 26-3 vote last session, before stalling in the House.