Arkansas Senate OKs Tax Cuts, Partial Capital Gains Repeal

Jan 22, 2015

The Arkansas Senate has approved middle-class tax cuts funded in part with a repeal of a $21 million capital gains tax cut approved two years ago.

Senators voted 30-3 Thursday to approve the cuts, a key campaign proposal of Arkansas Gov. Asa Hutchinson. The proposal reduces income taxes by 1 percent for people making between $21,000 and $75,000 a year.

Senate President Jonathan Dismang, R-Beebe, acknowledged concerns from a handful of senators that they were passing a tax cut before hearing Hutchinson's full budget proposal. But Dismang says the governor was expected to give more details next week, and that the Senate would have another chance to vote on the bill if the House approves it with amendments, as expected.