Arkansas House Speaker Amends Capital Gains Tax Bill
Arkansas House Speaker Davy Carter says he's compromising with Democrats by adding an increase to the standard income tax deduction to his capital gains tax cut proposal.
The House Revenue and Tax Committee approved the change on Thursday, as Carter said negotiations continued over which reductions would be included in a final package of cuts.
A Democratic proposal calls for raising the standard deduction income tax reduction - which largely affects low- and middle-income filers - from $2,000 to $5,000.
Carter's bill would raise the standard deduction from $2,000 to $2,400 over three years.
The panel also approved a proposal to include cotton gins in a separate tax cut for manufacturers.
Gov. Mike Beebe says the Legislature can't afford to cut taxes before reaping savings from a health insurance proposal.