Gov. Hutchinson Outlines $50 Million In Tax Cuts Aimed At Lower-Income Arkansans

LITTLE ROCK (KFSM) — Arkansas Gov. Asa Hutchinson announced Tuesday (Dec. 13) the details of his plan to make more than $50 million in income tax cuts aimed a lower-income Arkansans.

The plan will focus on Arkansans who earn between $0 and $20,999 annually.

The total tax cuts come to $50,517,296, the bulk of which will affect an estimated 657,000 Arkansans, of which 120,000 taxpayers in the lowest bracket will be taken off the tax rolls completely. Here is the breakdown:

Bracket Current Rate Reduced Rate Revenue Reduction
$0 to $4,299 0.90% 0.00% $22,283,558
$4,300 to $8,399 2.40% 2.00% $7,508,244
$8,400 to $12,599 3.40% 3.00% $5,617,899
$12,600 to $20,999 4.40% 3.40% $10,898,058

The governor also announced he supports exempting all retirement benefits of retired military service members from state income tax, which would amount to a $13 million reduction in general revenue. The governor plans to offset that reduction by repealing other tax exemptions, which are outlined here.