Arkansas Senate Backs Groceries, Business Tax Cuts

by Arkansas Business Staff  on Thursday, Mar. 24, 2011 1:52 pm  

"I don't know of many scenarios where it's not good to put money back in the hands of taxpayers, especially today," said Rep. Davy Carter, R-Cabot, chairman of the House Revenue and Taxation Committee.

About one in five governors are proposing large tax cuts this year, and several are states with a budget shortfall, according to the Center on Budget and Policy Priorities. In many of these states, such as Florida and New Jersey, the tax relief is coupled with calls for cuts in education, health care and employee salaries.

Arkansas has escaped the fiscal problems plaguing many other states partly because of the state's budgeting system, which requires that spending priorities be linked directly to expected revenues.

Beebe and legislative leaders over the weekend began negotiations on the major budget bill, and he has said he doesn't want proposed spending increases for public schools or prisons to be affected by the cuts.

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