Gov Asa Hutchison Signs Largest Tax Cut In Arkansas History
Governor Asa Hutchinson signed the largest tax cut Thursday in the Great State of Arkansas' history. The current top tax rate is 5.9% by the time this goes into full effect in 2025, the top tax rate for Arkansans will be 4.9%.
A statement released by the Governor's Office on Friday said that almost two years ago the top individual income tax rate was reduced down to 6.6 percent and then down to 5.9 percent earlier this year. Next month, the rate will drop to 5.5 percent and then to 5.3 percent in 2022. Now, after completing the special session, and passing the nearly $500 million in tax reductions, that number will be down to 4.9 percent by 2025.
Governor Hutchinson said;
The bill also provides relief to low-income taxpayers by giving a $60 tax credit. This will provide a reduction in the state income taxes owed for about 28 percent of all Arkansas taxpayers.
With the $60 credit, the tax cut also completely eliminates taxes owed for over 100,000 low-income Arkansans.
As Governor, it is important for me to balance the needs of our state with responsible tax policy. We have taken a responsible approach to lessening the state’s income tax burden, while also ensuring that the state is still able to meet its obligations.
The latest National inflation numbers were released on Friday as well which is now at 6.8%, the highest inflation rate in 39 years. Any relief from the state tax burden can literally mean food on the table or gas in the tank.