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Arizona voters approve ballot measure to raise taxes on high-income households

Arizona voters approve ballot measure to raise taxes on high-income households
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Voters in Arizona are projected to have approved a ballot measure to raise state income taxes on high-income individuals.

The Associated Press projected the approval of the measure, Proposition 208, Thursday evening.

The measure imposes a 3.5 percent surtax on income above $250,000 for single filers and $500,000 for married couples. That would effectively lead to a top state income tax rate of 8 percent, up from the current rate of 4.5 percent.

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Revenue raised by the tax increase is set to be used for various education-related purposes. The state’s joint legislative budget committee estimates that the measure will raise $827 million in its first full year of implementation.

The measure was supported by Sen. Bernie SandersBernie SandersIntercept bureau chief: minimum wage was not 'high priority' for Biden in COVID-19 relief Murkowski never told White House she would oppose Tanden Tanden withdraws nomination as Biden budget chief MORE (I-Vt.), a number of Democratic politicians in the state and labor unions, who argued that it would allow the state to make important investments in education.

It was opposed by Arizona Gov. Doug DuceyDoug DuceySupreme Court faces landmark challenge on voting rights House Freedom Caucus chair weighs Arizona Senate bid The Hill's Morning Report - Presented by The AIDS Institute - Finger-pointing on Capitol riot; GOP balks at Biden relief plan MORE (R) and business groups that argued that it would hurt small businesses that are taxed through the individual code on their owners’ returns.