Governor Asa Hutchinson signs Arkansas’ biggest income tax cut
“It is an accumulation of a lot of work, over many years, to get to this point,” Governor Asa Hutchinson said.
LITTLE ROCK, Ark. – Historic reductions are coming in the income taxes of the Arkansans.
Governor Asa Hutchinson signed the largest income tax cut in Arkansas history on Thursday, December 9.
It didn’t take long for lawmakers to approve the measures.
The Senate and House adjourned the special session Thursday morning, and as soon as the bill landed on the governor’s desk, he was ready to sign it within hours.
It is a historic plan which, according to Governor Hutchinson, is an “incredible achievement for this General Assembly and this special session”.
âIt’s the culmination of a lot of work, over many years, to get to this point,â he said.
Hutchinson enacted the tax cut bill Thursday afternoon, just three days after the start of the session that focused on it.
“We are growing as a state, we are creating jobs and this creates a climate where we can be more competitive in our tax cuts,” he said.
It’s a bill that sponsors like Senator Jonathan Dissman (District 28) worked on for almost four months.
He said the overall goal was to make Arkansas’ tax system simpler, more competitive, and beneficial for everyone.
âIt puts us on the map, just because of the size and the fact that, again, we have so many people talking about it right now, both individually and professionally, eager to take effect,â said Dissman.
So what exactly will this do?
It will lower the top personal tax rate from 5.9% to 4.9% over the next four years.
Over time, it will reduce the corporate tax rate to 5.3%.
It will also combine the low and middle income tax tables and offer a tax credit to people earning less than $ 23,600.
According to Dissman, Arkansas taxpayers will see the impact over the next tax season.
“One of the things I think people out of state are looking at and really our people in state are looking at is that we are consistent and we are conservative in our approach,” a- he declared.
Even though there was majority support in the House and Senate, not everyone agreed.
Most Democrats, like Senator Joyce Elliott (District 31), believe the half a billion dollars could be spent to benefit the state in other ways.
âFirst of all, there’s nobody who doesn’t want a tax cut, but first of all we have to take care of all the things I think are missing in Arkansas,â he said. she declared.
Despite some setbacks, this tax cut is a great success for the governor, since he has been fighting for it since taking office in 2015.
âThey did their job and I’m thankful they didn’t have an extended session,â he said.
He is not the only one, however.
Democratic and Republican senators said they were just happy the special session ended on Thursday.
But some, like Sen. Jason Rapert (District 35), have offered to extend the session, so they can vote on his bill, which is similar to the Texas abortion law.