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Arkansas Gov. Sarah Huckabee Sanders Signs $124 Million Tax Cut Bill

LITTLE ROCK, Arkansas — Republican Gov. Sarah Huckabee Sanders on Monday signed into law a bill that cuts Arkansas’ personal and corporate income taxes by $124 million annually.

Sanders signed a bill, backed by legislative leaders, to cut the top personal income tax rate from 4.9% to 4.7%. The law also reduces the top corporate income tax rate from 5.3% to 5.1%.

State finance officials said 1.1 million taxpayers earning more than $24,300 a year would receive a reduction under the proposal. Sanders, who took office in January, called for phasing out state income taxes. was enacted.

Lawmakers sent Sanders a tax cut bill last week. This is his one of the last remaining items before concluding this year’s Congress on Friday. The tax cuts will take effect this year, so the cost for the first year is expected to be $186 million, the Treasury Department said.

Sanders also signed another bill that would cut income taxes for multistate businesses by phasing out the “throwback rule” over seven years. That rule considers a sale of tangible property to be in-state for tax purposes if it is sold to the federal government or another state that does not collect taxes. According to the Department of Finance and Control, the bill will cost $10.6 million in the next fiscal year and $74 million annually when fully implemented.

Copyright © 2023 The Washington Times, LLC. Arkansas Gov. Sarah Huckabee Sanders Signs $124 Million Tax Cut Bill

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