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.
