Arkansas Bill Cutting $124 Million Income Taxes Heads to Governor Sanders

Legislators of the state approved an Arkansas bill that intends to cut $124 million in income taxes per year. To date, the bill is now heading to the state’s Governor Sarah Huckabee Sanders.

On April 5, the legislators of the state approved an Arkansas bill that intends to cut the income taxes of individuals and corporations by $124 million per year. The House of Representatives, predominated by Republicans, approved the Arkansas bill that would cut the individual income tax rate from 4.9% to 4.7% and the corporate income tax rate from 5.3% to 5.1%.

According to DeMillo, the income tax cuts are prepared to take effect as the state’s revenues have increased compared to what was expected. From the latest fiscal year, the revenue has increased by up to $306 million more than the prediction which resulted to a $1.6 billion worth of budget surplus.

READ ALSO: Arkansas Bill To Provide Sales Tax Exemption For Military Veterans

Proposals Included in the Arkansas Bill 

An article on the Fox News states that under the Arkansas bill, it was proposed that 1.1 million taxpayers who earn more than $24,300 per year would receive income tax cuts. The state’s Governor Sarah Huckabee Sanders has reportedly called for the elimination of income taxes since she has taken office last January.

However, opponents of the Arkansas bill argued that it will improperly benefit the wealthy taxpayers while the other needs in the state will lack funding. Reports say the income tax cuts would cost $186 million in the first year.

READ ALSO: Arkansas Bill Proposes To Include Unborn Children As Dependents On Income Taxes