Gov. Sarah Huckabee Sanders signed a tax cut bill into law Monday. Sanders says SB549 would cut $150 million off the state’s personal income tax and $36 million off the corporate income tax. She said tax cuts will make Arkansas more competitive with neighboring states.
“We're going to continue to find ways to cut government waste and government spending,” she said.
Sen. Jonathan Dismang, R-Beebe, said the cuts will affect 1.1 million Arkansans.
“We cut taxes for individuals that have never received a tax cut here in the state,” he said, explaining that the tax cuts are a continuation of bills passed by the legislature in 2015.
Earlier this year, lawmakers passed a large education bill supported by the governor that will cost the state several million dollars. Sanders says she also plans to sign into law a bill to lengthen the sentences for certain violent criminals.
Critics worry the tax cuts will be difficult to accommodate given the cost of other legislation passed in this year’s session. The governor said she is “confident” the state will be able to find the money to fund those initiatives.
“We have made sure that we can fully fund both Arkansas LEARNS as well as the criminal justice reform package,” she said.
Sanders promised to continue working to cut taxes going forward, to an ultimate goal of phasing out the state's individual income tax altogether.
