Arkansas governor signs tax cuts




  • In Business
  • 2021-12-10 12:09:17Z
  • By Axios
 

Gov. Asa Hutchinson signed the largest tax cut in Arkansas history into law yesterday.

  • He also signed a second set of bills (HB1007 and SB10) that provide tax incentives he hopes will encourage U.S. Steel to make a $3 billion expansion in Arkansas.

Why it matters: The cuts will eventually put money into the pockets of Arkansans and make the state more attractive to businesses.

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  • Personal income taxes will be reduced to 4.9% by 2025, down from the current 5.9%.

What they're saying: "We're in an incredible position in our state with a savings account, with having teacher pay increases, investing the largest amount in a decade in education and still having tax cuts," Hutchinson said in a news conference.

Flashback: Hutchinson's administration has led efforts to collectively cut taxes valued at $250 million since 2015.

  • The cuts enacted this week are projected to reduce state revenue by an additional $500 million by 2026.

The other side: Arkansas Advocates for Children and Families opposed the tax cuts, saying they will have a negative impact on the state's children.

"We should be investing in our communities by hiring caseworkers for the underfunded foster care system, helping the thousands of Arkansans who have been waiting for home and community-based care for years, helping Arkansans afford the childcare they need to be able to get back to work, making sure Arkansas workers have the skills to compete in a global economy, and so much more." - Arkansas Advocates for Children and Families statement

Meanwhile: After completing Hutchinson's agenda of passing the tax cut legislation, the Arkansas House and Senate voted to adjourn the second extraordinary session held in 2021.

  • Some lawmakers wanted to extend the session to consider legislation on Texas-style abortion bills and banning critical race theory from being taught in public schools.

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