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.