House committee amends Hutchinson's tax bill to reinstate capital gains tax cut | Arkansas Blog

Tuesday, January 27, 2015

House committee amends Hutchinson's tax bill to reinstate capital gains tax cut

Posted By on Tue, Jan 27, 2015 at 10:49 AM

As expected the House Revenue and Taxation Committee amended SB 6, Gov. Asa Hutchinson's income tax bill, to reinstate the capital gains tax cut approved by the legislature in 2013.

Hutchinson's proposal, by Sen. Jonathan Dismang, repealed a cut in the capital gains rate from 70 percent to 50 percent of a taxpayer's top marginal tax rate. The amendment would keep the same deduction this year, but make the deduction 40 percent  rather than 30 percent afterward. This means the bill will cost $9 million more a year.

I'm seeking a comment from the governor's office.

Progressive groups already are raising concerns. If a Hutchinson bill with some progressive elements is already being rolled back after just a few hours of life, they fear that this is a "floor" on what the legislature is likely to do and the "ceiling" of how many other tax cuts will be sought by Rep. Charlie Collins and others could be large.

This follows the Joint Budget presentation where the Hutchinson budget included the full effect of repeal and, by early session necessity, lacks some specifics about sources of one-time money and other budget specifics.

Can Hutchinson meet his budget goals without the capital gains repeal, particularly if there's more to come?

Can progressive groups make any headway by noting the unfairness of a bill with NO benefits of any sort for people making less than $21,000 a year but a capital gains tax cut that provides half its dollar benefits to the 1 percent of taxpayers making more than $250,000 a year. 

Collins like to call these super wealthy job creators. There's no study that supports that. Wealthy people make money off investments and reinvest the money in stocks, bonds and other investments in which they can realize a good rate of return. They are not limited by state boundaries. They are just rich.

Tags: , , , ,

From the ArkTimes store


Comments (4)

Showing 1-4 of 4

Add a comment

Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by Max Brantley

Readers also liked…

  • Auditor Lea caught not telling the truth

    State Auditor Andrea Lea, who began her tenure in statewide office with a degree of competence unseen in some other Republican counterparts (think Treasurer Dennis Milligan particularly), is becoming more deeply mired in a political scandal.
    • Mar 4, 2016
  • Arkansan on Obama's latest commutation list

    President Obama today announced commutations of the sentences of 111 federal prisoners, including one from Arkansas.
    • Aug 30, 2016
  • Another Republican miracle-working governor

    Great piece in Washington Post on the budget crisis in Louisiana. Big tax cuts and corporate welfare will do that to a state, particularly to a state whose previous governor, Republican Bobby Jindal, refused to join the Obamacare-funded Medicaid expansion. There's a lesson there for Arkansas.
    • Mar 4, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

  • McCain says no on Graham-Cassidy

    BREAKING FROM THE AP: Republican Sen. John McCain announces opposition to health care bill, dashing hopes for GOP leaders.
  • A Highway 10 traffic solution recommendation

    The Arkansas Department of Transportation has announced its preferences for interchange and other improvements along the Highway 10 corridor between Pleasant Valley Drive and Pleasant Ridge Road.
  • Martha Shoffner, nearing completion of term, back in Arkansas

    Martha Shoffner, who reported to federal prison Nov. 3, 2015 for a 30-month sentence for taking bribes in return for state bond business when she was state treasurer, is nearing the end of her sentence and n
  • 60th opens with panel of Little Rock Nine

    Eight members of the Little Rock Nine, lacking the late Jefferson Thomas, gathered for a panel discussion at the Clinton School for Public Service this morning to open a weekend of activities marking the 60th anniversary of their desegregation of Central High School.
  • Police release details on officer shooting Wednesday night

    The Little Rock police this morning finally provided more details on officers' shooting of a criminal suspect Wednesday night in Southwest Little Rock.

Most Recent Comments



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