Arkansas Governor Talks Tax Cuts in State Address
With state lawmakers split about how deeply to cut taxes, Gov. Asa Hutchinson on Tuesday called on them to support the creation of a blue-ribbon legislative task force to recommend a comprehensive plan to reduce Arkansas' individual income tax rates.
In this year's regular session, the Republican governor also wants the GOP-controlled Legislature to enact his proposal to cut rates for Arkansans with taxable incomes below $21,000, which state officials said would reduce general revenue by $25 million in fiscal 2019 and $50 million a year thereafter. He also wants lawmakers to enact his proposal to no longer levy state income taxes on military retirement benefits, part of a larger, $19 million-a-year plan to cut two taxes and modify three tax exemptions.
Two years ago, the Legislature enacted Hutchinson's proposal to cut rates for Arkansans with taxable income between $21,000 and $75,000. State officials projected that would reduce general revenue by about $100 million in the current fiscal 2017, which started July 1.