Arkansas Legislature Passes Gov. Hutchinson’s $50 Million Tax Cut Plan
LITTLE ROCK, Ark. — Governor Asa Hutchinson’s $50 million tax cut proposal was passed by the Arkansas legislature Monday (Jan. 23).
The plan focuses on Arkansans who earn between no money and $20,999 annually.
The total tax cuts come to $50,517,296. The bulk of that amount 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. Those are outlined, here.