Icon (Close Menu)

Logout

Arkansas Lawmakers Pass Tax Cut Package, Adjourn Session

2 min read

LITTLE ROCK, Ark. (AP) — Arkansas lawmakers on Thursday approved a $500 million tax cut package and adjourned a special session without taking up teacher raises, abortion ban exceptions or other issues Democrats had hoped to add to the agenda.

The majority-Republican House and Senate gave final approval to the tax cuts proposed by GOP Gov. Asa Hutchinson after the state’s surplus reached $1.6 billion. Hutchinson planned to sign the legislation Thursday afternoon.

The legislation includes a proposal to speed up when corporate and individual income tax cuts lawmakers approved last year take effect. It also includes a nonrefundable $150 tax credit for individuals making up to $87,000 a year.

The top Democrat in the Senate questioned whether the state would be forced to repay millions in coronavirus relief funds under a federal rule prohibiting states from using that money to offset tax cuts. That rule has been permanently blocked by a federal judge but the case is on appeal.

“We’re pushing all our chips in to the middle of the table and making a big, big bet that we’re not going to have to repay that,” Senate Minority Leader Keith Ingram said.

State finance officials and Republican leaders have said the state faces little risk of that happening because the cuts aren’t being funded directly or indirectly by the relief money. Republican Sen. Jonathan Dismang said high inflation is what has helped the state build up its record surplus.

“That is driving up our revenues and it’s hurting our people back home and we should return some of it back to the taxpayers,” Dismang said.

Democrats had hoped to extend the session to consider raising teacher salaries. Hutchinson proposed teacher raises earlier this year, but decided against putting it on the session agenda because of a lack of support in the Legislature.

GOP leaders have said the session wasn’t the right time because the Legislature hadn’t completed its annual review of school funding.

Other bills Democrats hoped to add included one adding rape and incest exceptions to the state’s abortion ban.

The House also gave final approval to setting aside $50 million for a school safety grant program Hutchinson proposed after the Texas school shooting that killed 19 students and two teachers.

_____

All contents © copyright 2022 Associated Press. All rights reserved.
Send this to a friend