Arizona Budget Cuts Taxes for Middle Class

Arizona’s new $18.3 billion budget, signed by Governor Katie Hobbs, delivers major middle-class tax cuts worth $1.4 billion over three years — including no taxes on tips or overtime starting July 1, a bigger standard deduction, and a new senior deduction. It mirrors Trump’s federal tax cuts for this year, avoiding costly refile headaches for taxpayers. Future plans include eliminating the wealthy-benefiting state and local tax deduction in favor of a broader child tax credit. Democrats cheered a three-year pause on new data center tax breaks, while Republicans highlighted the tax relief and continued school voucher funding — despite controversy over their use. The budget also includes a 2.5% cut to most state agencies (down from GOP’s 5%) and boosts investments in border security, education, and water. Compromise reigns, but the goal is clear: put more money in Arizonans’ pockets while tackling key state needs. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/90f251ab3f927dd4