LITTLE ROCK, Ark. (AP) - Gov. Mike Beebe says tax cuts being considered by Arkansas lawmakers would need to take effect later than proposed in order for them to be funded by savings from a proposed expansion of health insurance coverage.
Beebe told reporters Wednesday that a problem with the capital gains and income tax cuts backed by a House panel is they'd take effect before the fiscal year that begins July 1, 2014. That's when Arkansas would see savings from the insurance proposal. Lawmakers are considering a proposal that would use federal funds to purchase private insurance for low-income residents newly eligible for Medicaid under the health care law.
Beebe also said he prefers a competing income tax cut proposal by Democratic Rep. Warwick Sabin to the one approved by the panel Tuesday.COMPLETE COVERAGEBeebe Proposes Trigger to End Grocery Tax (Jan. 15)Ark. lawmakers: No rush on tax cut proposals (Jan. 20)Arkansas House speaker backs $150M in tax cuts (Feb. 26)Ark. panel approves tax cut for farm structures (March 14)Tax exemption for farmers passes Arkansas House (March 18)Ark. leaders say they're closer to tax cut deal (March 20)Ark. House panel advances income tax cut bill (March 26)Beebe: Problem with tax cuts' effective dates (March 27)Income Tax cuts in Arkansas (April 2)Ark. House panel OKs tax cut for manufacturers (April 2)Ark. House speaker amends capital gains tax bill (April 4)House approves conditional cut in Ark. grocery tax (April 16)Arkansas House approves package of tax cut bills (April 16)Ark. Senate committee advances tax cut bills (April 18)Ark. Senate approves $140M tax cut package (April 19)