Arizona House OK’s big loopholes for new tax on wealthy

PHOENIX (AP) — The Republican-controlled House has passed more legislation targeting Proposition 208. They voted Friday to create a new tax category for small business, trusts and estates that will eliminate even more of the money the measure approved by voters in November was designed to raise for schools. The proposal passed despite unified opposition from minority Democrats. On Thursday, the House passed budget bills slashing $1.9 billion in income taxes that mainly benefits upper-income taxpayers. They also shielded them from a new 3.5% tax on high earners approved by voters.