State lawmakers have taken the first steps toward scrapping Arizona’s multitiered income tax system and lowering the rate for all taxpayers, but the proposal does not yet have the votes to make it to Gov. Doug Ducey.

As part of several bills, lawmakers advanced House Bill 2900 from the House Appropriations Committee on Tuesday afternoon. Should it be enacted, it would transition the state’s four income tax rates to one 2.5% rate over two years. A 3.5% surcharge for earnings over $250,000 for single filers, enacted by Prop. 208 in 2020, would remain, but the total tax rate for the state’s highest earners would be capped at 4.5%.