Wednesday, December 31, 2014

Here come the tax cuts; when will Hutchinson declare on private option?

Posted By on Wed, Dec 31, 2014 at 6:35 AM

Stephens Media notes the tax cuts due to take effect Thursday, the start of a New Year.

* INCOME TAX RATE: The top rate of 7 percent drops to 6.9 percent, at an annual cost of $55 million.

* INCOME TAX DEDUCTION: The standard deduction will increase from $2,000 to $2,200.

* CAPITAL GAINS TAX CUT: This tax on sale of investment — a benefit overwhelmingly enjoyed by the wealthy — will drop from 4.9 percent to 3.45 percent.  This and the increased personal deduction are expected to cost $24.5 million, mostly from the capital gains reduction. Already in effect was a total capital gains tax exemption for gains of more than $10 million. Yes, total.

* UTILITY TAX RATE: The second and third phases of a reduction in the sales tax rate on utilities used in manufacturing will occur in calendar 2015 and eventually cost another $27.4 million a year.

That's more than $100 milion in cuts.  Gov. Mike Beebe has suggested delaying some of that because of a tight budget. He's irrelevant. Asa Hutchinson, to take office Jan. 13, wants to keep these and cut income taxes $100 million more. He's not yet said if he supports continuation of the private option Medicaid expansion, which is pumping $100 million or so of Obamacare dollars into the state treasury. The question looms larger with each passing day.


Tags: , ,

Favorite

Speaking of...

Comments (9)

Showing 1-9 of 9

Add a comment

 
Subscribe to this thread:
Showing 1-9 of 9

Add a comment

More by Max Brantley

Readers also liked…

  • Child abuse: What about the victims?

    A guest writer in the Arkansas Times, a victim of child sexual abuse, says Arkansas sends a message that it condones abuse by a lack of consequences for the Harrises and Duggars.
    • Jun 3, 2015
  • Lawyers plead for mercy in Fort Smith forum shopping case

    Twelve of the lawyers facing punishment by federal Judge P.K. Holmes in Fort Smith for moving a class action case against an insurance company out of his court to a state court where it was speedily settled have filed their argument against sanctions.
    • Jun 16, 2016
  • Arkansas conservatives react to same-sex marriage decision

    Jason Rapert, Mike Huckabee, the Meeks bros, Jerry Cox — beyond these extremists, it's hard to find statements from other Arkansas conservatives. That tell you something?
    • Jun 26, 2015

Most Shared

Visit Arkansas

Indian Rock House at Fairfield Bay

Indian Rock House at Fairfield Bay

Winter is the perfect time to explore the natural stone shelters where native Arkansans once lived

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation