By PAUL DAVENPORT , Forbes.com
PHOENIX — A “flat tax” bill to rewrite the state individual income tax is nearing the finish line at the Legislature, setting the stage for changes that would have the Arizona’s wealthiest taxpayers paying less while nearly nine of every 10 Arizonans pay more.
The Senate Finance Committee approved the Republican-sponsored bill on a 4-2 party line vote Thursday. The House has already approved a version of the bill.
Major changes in the bill include eliminating the standard deduction, dependent exemptions and most other state deductions while flattening the current five rates into one lower rate of 2.13 percent. Current rates range from 2.59 percent to 4.454 percent depending on income levels.