A Study of the Arizona State Tax Reduction Program A Study of the Arizona State Tax Reduction Program Frank J. Sackton, Professor Emeritus School of Public Affairs, Arizona State University Taxes always generate controversy.
Some people argue that tax cutting is good for the individual and stimulates the economy.
Others contend that tax cutting in Arizona has gone too far resulting in the reduction of essential services to unacceptable levels. Tax cuts are popular among people because they provide additional spending opportunities and a feeling of increased well-being. Some economists argue that tax cuts, particularly reductions in marginal personal income tax rates, can meaningfully improve economic performance. Further, they argue that states can improve the economic performance of their local economies by pursuing tax-cut policies. The prevailing contrary view is that essential services should be funded by a government before undertaking tax reductions.