Income Tax cuts in Arkansas
LITTLE ROCK (KATV) - There's not much exciting about income taxes. Paying them, filing them, even legislating them isn't exactly thrilling, unless you're Rep. Charlie Collins and you're talking about tax cuts.
"HB1585 is designed to really take a bite out of that problem for a lot of folks that are in those lower income ranks, and we think that will be a big deal," said Collins.
Right now, Arkansas uses a graduated tax scale with the percentage based on income. Before your eyes glaze over, you should know HB1585 changes it all. Bottom line, right now if you make $34,000, you're in Arkansas's highest tax bracket. If the bill passes, you'd have to make $44,000 to be there. Additionally, the rate would drop from 7 percent to 6 7/8 percent.
One more number of importance is $60 million. That's how much the bill's tax cuts would cost the state. Collins says the money saved by the private option Medicaid expansion will pay for it. Governor Mike Beebe agrees, but wants to see medicaid move first. He'd also like to wait one more year before the cuts are implemented.
"If you get Medicaid expansion, you can afford some of these tax cuts. So yes, I've linked those together. So, as far as I'm concerned, you've got to do the first one before you can afford the second one," said Beebe.
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)