An Arkansas legislator is proposing a plan to cut state income taxes by $105 million. Wage earners who make less than $21,000 a year would pay no income taxes, while those earning $35,000 to $50,000 would see tax cuts.
Northwest Arkansas Republican Bart Hester says his proposal would benefit nearly 600,000 taxpayers.
"Ultimately, the goal is to have an impact on all Arkansans, but being able to say that 'hey, if your gross income is $21,000 or less, you know, I don’t think you should be paying any income tax in Arkansas. You’re certainly paying grocery taxes and sales taxes and certainly doing you’re part, but we wanted to make an impact on that group first and foremost," Hester said in an interview with KUAR News.
Gov. Asa Hutchinson has said he’ll propose another round of tax cuts during the 2017 regular session of the Arkansas Legislature, but Hester says he was concerned that nothing has yet been proposed. Last year lawmakers approved a $102 million tax cut package from the governor.
"I started getting nervous thinking here we are at the end of October, going into the session in January, and I’m not seeing any plan. The intent with mine is to say, 'Hey guys, here’s what I’m working on. Now if you want to come and you want to change mine by doing this, or here’s your plan, I’m happy to look at your plan.’ I just think the people of Arkansas deserve a little tax break,” Hester said.
The proposal would also offer a one percent reduction in income taxes for first-year teachers and police officers.
