Mike Ross' Income Tax Reduction Plan
(KATV)-Democratic gubernatorial candidate Mike Ross released his plan Wednesday to reduce state income taxes. The cuts could total $574.5 million, according to the state's Department of Finance & Administration.
Ross does not have a specific timeline for the cuts, but hopes for a gradual implementation that would expand with economic growth. Ross compared his plan to Gov. Mike Beebe's 7 year rollout of a $1 billion dollar reduction in grocery tax.
Ross' plan would adjust the 1971 tax bracket to reflect inflation, it was adjusted moderately in 1991, but Ross' plan would adjust for inflation retroactively. The plan below shows Ross' plan, once completely implemented in comparison to the current tax bracket.
Republican candidate Asa Hutchinson proposed in Nov. to reduce income tax from seven percent to six percent for those earning between $34,000 and $75,000 and from six percent to five percent for those earning $20,400 to $33,999. His plan would cost $100 million with immediate effect. Republican candidate Debra Hobbs said she has a similar plan to Ross' plan, but would like four brackets instead of six. Republican candidate Curtis Coleman said he will be releasing a plan next month.