LITTLE ROCK, Ark.- Governor Asa Hutchinson rolled out another of his top priorities for the 92nd general assembly Wednesday.
His stated goal is to reduce the overall tax rate for Arkansans. It’s called the 5.9 Plan.
The new tax bill would lower the state’s top marginal tax rate gradually over the next two years.
The governor says he has worked with lawmakers on this bill and estimates it’ll come at a cost of about $97 million to the state.
“This is in line with our existing budget and our reserve funds that were set aside for tax cuts and the other needs of our state,” says Gov. Hutchinson.
Despite the governor’s reassurance, some Arkansans are concerned that all these tax cuts will take away too much revenue that’s needed for essential resources.
“I want people to look past the idea that tax cuts are great,” says Glen Hooks, director of the Arkansas Sierra Club. “[Look to] the idea that every time a tax is cut, essential programs are also cut.”
Opponents to these cuts including Hooks, formed the group “Arkansans for Responsible Spending.” They believe these tax cuts could take funding away from things like schools and environmental protection efforts.
This bill would require a 3/4 vote because it involves changing the tax bracket.