Arizona: Bottom 90% of Consumers Cutting Spending

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At a meeting of the state’s Finance Advisory Committee last week, economists warned that Arizona was becoming increasingly dependent on spending by the top 10% of its residents to generate sales tax revenue. According to these economists, the bottom 90% of consumers, as measured by income, are curtailing their spending due to economic stress. Consumer spending patterns are a key issue in Arizona because the state’s 5.60% sales tax typically accounts for nearly half of its general fund revenues. 


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