Rising costs and lower spending hit Arizona’s sales tax revenue

Ninety percent of Arizonans are spending less as the costs of goods and services rise according to economists. A majority of the state’s general fund is financed by sales taxes, meaning that if people are spending less money, the state government will not have their anticipated budget to support state funded programs.

The committee also says tariffs created by the Trump administration has led to higher costs and decreased spending. The issue of decreased spending will only be made worse if Arizona alters its tax code to fit the tax cuts from the One Big, Beautiful Bill Act.

ASU W.P. Carey School of Business Professor, Dale Rogers, joined “Arizona Horizon” to talk more about how the decrease in consumer spending could impact state funded programs.