Tax trim to figure in state budget dialogue
Gov. Asa Hutchinson said he believes the state could conservatively afford a $50 million-a-year income tax cut, even amid some economic uncertainty, but he hasn't yet decided how large of a tax cut he'll ask the General Assembly to pass during its legislative session next year.
The Republican governor said his goal is to unveil a proposed income tax cut plan on Nov. 9 -- the day after Election Day -- when his administration presents its general revenue forecast and proposed budget for fiscal 2018 to the Legislative Council and Joint Budget Committee. The governor's approach would be for the tax cut to become effective Jan. 1, 2018, Hutchinson spokesman J.R. Davis said.
Hutchinson said he's considering future income tax rate cuts for Arkansans who didn't receive any from his nearly $101 million middle-income tax cut that the Legislature passed in 2015. That cut reduced individual income tax rates from the previous 7 percent to the current 6 percent for those with taxable incomes between $35,100 and $75,000 a year, and from 6 percent to 5 percent on taxable income between $21,000 and $35,099.
The Legislative Council and Joint Budget Committee begin weeks of budget hearings Tuesday, in advance of the legislative session that starts Jan. 9.
Read more: http://www.arkansasonline.com/news/2016/oct/09/tax-trim-to-figure-in-budget-dialogue-2/
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