Tax Cut Takes Effect For 600K In Arkansas With New Year

Jan 1, 2016

Arkansas Governor Asa Hutchinson (R)
Credit Michael Hibblen / KUAR News

About 600,000 Arkansas taxpayers are receiving an income tax cut with the start of the new year, a move that the state's Republican governor says will boost the economy but critics say threatens other state services.

The 1 percent income tax cut for those making between $21,000 and $75,000 approved by the majority-Republican Legislature last February took effect Friday.

Republican Gov. Asa Hutchinson, who campaigned on the tax cut proposal, has cast it as a way to help the state's middle class and make Arkansas more competitive.

The law is part of a broader Hutchinson campaign promise to gradually cut income taxes across the board, but he said the next reductions he'll push won't come during the fiscal legislative session in April.