A Service of UA Little Rock
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Arkansas Governor’s Tax Cut Plan Advances To Final Challenge

Joe Jett Jonathan Dismang
Arkansas Legislature

Gov. Asa Hutchinson’s proposal to cut the state’s top income tax rate is advancing to a final vote. Members of the House Committee on Revenue and Taxation debated the $97 million proposal for about an hour Tuesday before approving it. But its future in the full chamber is uncertain.

During the committee hearing, Rep. Charles Blake, D-Little Rock, said a decision shouldn’t be rushed and proposed an amendment that would limit the tax cut to people earning less than $456,000 a year.

"The benefits that will go to those highest of our taxpaying Arkansans will outweigh those for the 99 percent," Blake said. "So if we’re going to be smart, let’s slow down. Let’s take a good look at this tax bill, what it’s actually going to cost the state of Arkansas."

Rep. Monte Hodges, D-Blytheville, voiced concerns about the limited number of Arkansans who will experience a cut in their taxes.

"12,000 to 15,000 people will benefit. That’s less than one percent that will benefit from this tax cut in a state that has about 3,000,000 people," Hodges said. "How is that responsible on our part when it comes to meeting the needs of our constituents? I mean, I’m just kind of baffled by that."

Committee Chair, Rep. Joe Jett, R-Success, countered that Hutchinson’s tax cuts in previous legislative sessions benefited low and middle income Arkansans.

"Arkansas’s top marginal rate has finally been reduced from 6.9 percent to 5.9 percent. Our mission from day one, from all the way back to the 90th General Assembly, is to have every Arkansan with a tax cut, which we accomplished under this bill," Jett said. "When we get to 5.9 percent, this is finally going to make the state of Arkansas competitive with Louisiana, Georgia, South Carolina, Kentucky, West Virginia and equal to Missouri. We’ve all heard that Arkansas lags in being competitive with surrounding states and this will finally get us into a competitive position."

The committee voted 15-2 to approve the bill, with three representatives absent from the hearing. As the bill moves to the full House, Republican leaders are counting votes.

Republicans hold 76 positions in the House, one more than the supermajority needed for passage. But some Republicans have expressed concerns. Last week it took two attempts to pass in the Senate. It was hoped the governor’s highway plan, which was announced Monday, would sway some lawmakers who are the uncertain.

If approved in the House, the bill would go to the governor to be signed into law.

Michael Hibblen was a journalist for KUAR News from May 2009 — December 2022. During his final 10 years with the station, he served as News Director. In January 2023, he was hired by Arkansas PBS to become its Senior Producer/ Director of Public Affairs.
Related Content