$50 million low-income tax heading to governor's desk | Arkansas Blog

Monday, January 30, 2017

$50 million low-income tax heading to governor's desk

Posted By on Mon, Jan 30, 2017 at 5:24 PM

The Arkansas Senate voted 33-0 and the House 92-0 to pass bills enacting the governor's proposed tax cut on those who make less than $21,000.

The two identical bills had previously passed in the other chamber last week. The tax cut will now head to Gov. Asa Hutchinson's desk.

It is of course welcome that Hutchinson finally paid attention to the lower end of the income scale after previous rounds of tax cuts ignored low-income folks entirely. However, it's worth noting once again that most of the state's poorest are still left out: Only 12 percent of the bottom quintile — those who make less than $18,000 a year — will benefit at all. Meanwhile, around half of the tax relief in the governor's plan actually ends up going to the top 40 percent of earners in the state

An earned-income tax credit
proposed by Rep. Warwick Sabin would have offered much more targeted relief for low-income workers (and been ten millions dollars cheaper), but it was rejected by the legislature.


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