Common Sense Institute (CSI) used the REMI dynamic economic simulation model PI+, to estimate the combined 10-year effects of repealing the 8.00% progressive state income tax and replacing it with a single, flat 2.50% income tax.
CSI analyzes the impacts of HB 2822 which lowers and simplifies the tax burden on new capital investments by businesses in Arizona. In the process, the return-on-investment for a given asset rises, and the equilibrium level of investment will increase.
