Tax Cut Proposal Heads To Hutchinson For Signature
by February 5, 2015 1:16 pm 80 views
Gov. Asa Hutchinson will sign his proposed middle class tax cut package on Friday morning after the Senate approved the final measure.
The Arkansas State Senate passed the tax cut bill, SB 6, on Thursday by a 31-0 vote.
Hutchinson campaigned on a tax cut plan that would provide tax relief for those making between $20,000 and $75,000 annually.
After adjustments for state statutes and the addition of an alteration of the capital gains tax rate, the final bill passed by lawmakers would:
- Decrease the existing capital gains tax rate exemption from 50% to 40%;
- Lower income tax rates from 6% to 5% for Arkansans making $21,000 to $35,099;
- Lower income tax rates from 7% to 6% for those with incomes between $35,100 and $75,000.
Annual tax savings for those in the income tax range would save as little as $16 per year up to $540 annually.
The bill has a projected $22.9 million impact to the state in FY 2016 and a $90.3 million impact on the state budget in FY 2017, according to analysis from the Department of Finance and Administration.
The governor plans to hold a bill signing ceremony on Friday morning at 11 a.m. in the Governor’s conference room.
UPDATE: “I want to thank the legislators for their diligent work in passing this tax cut for working Arkansans. I am especially grateful to the leadership of both houses for their efforts on this bill. They truly did the work of the people — and the people of Arkansas will benefit,” said Gov. Hutchinson.
“This is an encouraging first step in making Arkansas’s income tax rates more competitive with surrounding states, which will only enhance our reputation as a state that is eager to attract and accommodate new jobs and businesses. Arkansas has been an island of high taxation for too long, and I’m pleased that we are doing something about that,” he added.