Governor signs tax cut bills into law; special session adjourns without additional measure - KATV
LITTLE ROCK (TB&P) — Gov. Asa Hutchinson signed the largest tax cut in Arkansas history into law Thursday (Dec. 9) after legislators completed a three-day special session.
The tax cut reduces Arkansas’ top income tax rate from 5.9% to 5.5% next year and to 4.9% in the next four years if certain economic conditions are met. The legislation would also reduce the corporate income tax rate to 5.3% over the same time period; combine low- and middle-income tax tables; provide for a $60 non-refundable tax credit from those individuals with an income of less than $24,700; index the standard deduction to the Consumer Price Index; and change a long-term reserve fund to a “catastrophic” reserve fund.
The total price tag for the tax cut when fully implemented will reduce state revenues by $430 million. Arkansas has a surplus of more than $1 billion and has more than $1.2 billion in reserves.
“I want to thank the General Assembly for one of the most successful special sessions in history,” Hutchinson said, singling out Senate President Jimmy Hickey, R-Texarkana, and Speaker of the House Matthew Shepherd, R-El Dorado. “We’ve put Arkansas in position for the future to be competitive to put more money in people’s pockets and that’s the design.”
Hutchinson noted that during his term as governor, there have been three previous major tax cuts, some of which were targeted specifically at low- and middle-income taxpayers.
While the governor praised lawmakers for their efforts, he also responded to the criticism made by opponents of this measure. Several lawmakers and non-profit organizations highlighted that the $60 non-refundable tax credit equates to a 16 cents a day savings.
"Just because you have that $60 tax credit means that there's 100,000 Arkansans that were paying taxes that will have their taxes eliminated because of this reform effort. I think it's poor form for someone to diminish a tax cut even though it's small for an individual who happens to be paying a small portion of taxes," Hutchinson responded.
During the morning session, efforts were made by some lawmakers - including Sen. Jason Rapert, R-Conway - to extend the session, but there weren't enough votes.
Rapert had plans to introduce a Texas-style abortion law.
He released a statement to KATV:
"This is a sad day for the unborn in Arkansas. The legislature had the ability to protect unborn Arkansans today and not wait for months for the United States Supreme Court to render its opinion. It is unfortunate that the political will needed from the legislative branch to protect unborn Arkansans from the crime against humanity that is abortion was ceded to the political agenda of the Governor."
Both the senate president and house speaker, during the governor's bill signing, said they would rather wait for a SCOTUS decision. They also highlighted that Arkansas is already the most pro-life state.
Read more on the Talk Business & Politics website.
source: https://katv.com/news/local/governor-signs-tax-cut-bills-into-law-special-session-adjourns-without-additional-measure
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