KASU

Arkansas Senate panel advances $50M tax cut plan

Jan 18, 2017

LITTLE ROCK, Ark. (AP) — An Arkansas Senate panel has advanced Gov. Asa Hutchinson's $50 million proposal to cut income taxes for more than 600,000 low-income residents.

The Senate Revenue and Taxation Committee on Wednesday endorsed the Republican governor's proposal to cut income taxes for those making less than $21,000 a year. The legislation would also form a task force to recommend further tax cuts before the 2019 legislative session.

Senate Majority Leader Jim Hendren said he'll bring the proposal before the full Senate next week. A House panel is expected to take up an identical version of the bill Thursday.

Hutchinson had faced resistance from some fellow Republicans who had called for deeper tax cuts, but at least two critics dropped their competing plans after the governor proposed the task force.