Arkansas should cut taxes by $105 million per year during the 2017 legislative session, according to Sen. Bart Hester.
According to a statement released by Hester yesterday, the plan would provide approximately 600,000 Arkansans with income tax relief.
Under Hester’s plan, taxpayers making $21,000 per a year would no longer have to pay state income taxes. His proposal would also cut taxes by 1 percent (from 6 percent to 5 percent) for those making between $35,000 and $50,000.
Taxpayers who make in excess of $75,000 would see a 0.1 percent reduction in their tax bill — from 6.9 to 6.8 percent.
Hester’s plan would also give an additional 1 percent reduction in income taxes for first-year teachers and police officers.
Hester said in a statement regarding the plan:
I am optimistic that our state’s fiscal outlook will start to show significant positive growth in the coming months. With this optimism in mind, I am proposing income tax reductions that will benefit working Arkansans of every level of income. I look forward to working with my colleagues and the executive branch in delivering this needed relief the hardworking taxpayers of Arkansas deserve.
Hester’s plan is the first tax reduction plan released for the 2017 legislative session. I’m sure there will be more to come.
Hutchinson has previously said he’ll back further tax cut proposals in the upcoming session. However, he’s yet to release any proposed plan so far. Hutchinson said in July he wants to eventually get Arkansas’s top income tax rate down to 5 percent to be more competitive in the region for businesses looking to relocate.
Both Texas and Tennessee currently have no income tax.