Taxes

Arkansas cuts tax rates, again

The state’s top personal income tax rate dropped from 7% to 4.7% in the past decade.
The Arkansas state Capitol building in Little Rock, Ark. (AP Photo/Danny Johnston)

Arkansas’s Republican-led legislature on Thursday overwhelming approved a cut to personal and corporate income tax rates, sending taxpayers a one-time tax credit and moving some revenue into a new reserve account to hedge against a future downturn.

“We’re seeing surpluses in excess of a billion dollars,” House Revenue and Taxation Committee Chair Les Eaves (R) said during a Wednesday committee meeting. “To me, that’s a clear indication that we’re likely over-collecting, so it’s time to spend some of that money back to our constituents.”

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