- Associated Press - Monday, February 9, 2015

PHOENIX (AP) - Legislation automatically adjusting tax brackets each year to account for inflation has passed the Arizona House on a mainly party line vote.

House Bill 2001 by Republican Rep. Justin Olson prevents taxpayers from being pushed into a higher tax bracket if they get small raises.

Democratic efforts to make cuts contingent on settling a school funding lawsuit failed last week.

Monday’s 38-21 vote sends the bill to the Senate.

The move will cut state revenue and comes despite a large state budget deficit.

Olson pushed similar legislation in 2013 that was vetoed by then-Gov. Jan Brewer over budget concerns. She recommended adjustments after yearly budget reviews and signed a 2014 Olson bill granting a one-time adjustment.

Gov. Doug Ducey called for automatic adjustments in his State of the State address.

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