Arkansas Governor Sarah Huckabee Sanders On Thursday, legislature leaders called for $124 million in income tax cuts as the end of this year’s legislative session approaches.
The tax cut proposal calls for lowering the state’s top individual income tax rate from 4.9% to 4.7% starting this year. It would also cut the top corporate income tax rate from 5.3% to 5.1%.
“Staff will feel Sanders said at a press conference at the state capitol
State financial officials said 1.1 million taxpayers earning more than $24,300 annually would get a cut under the proposal.
Sanders, a Republican who took office in January, has called for phasing out the state income tax. Sanders’ Republican predecessor, former governor Asa Hutchinson, and the majority GOP legislature have run a series of cuts over the past several years.
The push for more tax cuts comes after Arkansas finished last fiscal year with a surplus of $1.6 billion. State revenue for the fiscal year to date is $250 million, higher than expected.
Legislative leaders introduced the tax cuts legislation as they hope to wrap up this year’s legislative session by early April. The remaining agenda for the session includes the state budget and Sanders’ call for $470 million for 3,000 more prison beds.
Democrats, howeverHe said that tax cuts over the years have come at the expense of other needs such as education and health care.
“If we continue on this path of phasing out income tax, we will not have the resources to deal with these issues and pay for our essential services without increasing other types of taxes, such as sales taxes and property taxes,” House Minority Leader Tippi McCullough said in a statement.