PHOENIX — Legislative budget analysts said the federal budgetary fiscal
cliff may have a bright side for the state treasury, at least in the short
The joint Legislative Budget Committee staff said it appeared that investors and
companies were taking steps to respond to the possibility of higher federal
income tax rates in January.
Those steps include locking in capital gains and paying higher dividends in
the last quarter of 2012.
According to the analysts, that could substantially increase personal income in
the 2012 tax year and produce higher income tax collections for the state in
However, the analysts said a downside would be lower than expected income
liability in future years.