LITTLE ROCK, Ark. – How much you pay in taxes in the Natural State could decrease if Senate Bill 549 is passed.
If you make more than $24,300 dollars a year, then you will see a 2-tenth of a percent subtraction on your tax rate.
There is no cut-off if you make that amount. So, for example if you make a million dollars a year, you’ll still see that 2-tenth decrease.
Thursday, Governor Sarah Huckabee Sanders held a press conference announcing the bill that would be a $124 million dollar tax cut.
The top state income tax rate would lower from 4.9% to 4.7% this calendar year which will account for 100 million dollars.
The state corporate tax rate would also drop from 5.3% to 5.1%. That’s 24 million dollars for corporate income tax cuts.
In Thursday’s press conference, Gov. Sanders took a stab at President Joe Biden’s leadership as to why this is a need for Arkansas.
“Arkansans under Joe Biden’s reckless spending spree in Washington and the out-of-control inflation, the rising cost in groceries and gas, Arkansans need relief, and they need it quickly,” Governor Sanders said.
Democratic State Representative and House Minority, Tippi Mccullough released the following statement on Senate Bill 549:
“These proposed tax cuts take us further down a reckless path as a state government. In every major issue we’ve dealt with this session, we’ve heard over and over again that our essential functions, such as public education, the criminal justice system, and healthcare, are severely underfunded. If we continue down this path of phasing out the income tax, we won’t have the resources to deal with these issues and pay for our essential services without raising other types of taxes, like sales taxes and property taxes.”
If passed, the overnor said this will cover roughly 1.1 million taxpayers and will be retroactive, meaning it will go into effect immediately.
Gov. Sanders said this is a step to make Arkansas a great place to live, work and raise a family.
“Whether it’s a single mom living in Warren, or working parents in Ozark, this bill is aimed directly at the hard-working Arkansans hurting most from inflation,” Gov. Sanders said.
The Governor also mentioned neighboring states such as Mississippi and Missouri who have cut taxes in recent years. Sanders said Arkansas will risk missing out on more growth if we don’t keep up, calling it an “economic reality.”
“As long as we continue to have some of the highest tax rates in the region, the simple truth is that the talent of the families and businesses we create will leave our state for greener pastures.”