Tuesday, November 29, 2011

Legislative Republicans Look at Reducing Tax Burden on Arkansas Families

“A working class family with an annual income in the low $30,000 range is in the highest marginal tax bracket in Arkansas, even though that family’s income exceeds the federal poverty level by only $10,000 or so. This needs to be addressed...” - Rep. Davy Carter (R-Cabot)
Rep. Davy Carter, R-Cabot, AR
Tax Chairman Wants To Trade Exemptions For Income Tax Reform
By Roby Brock, Talk Business, November 28th, 2011: House Revenue and Tax Committee Chairman Davy Carter (R-Cabot) wants to lower your personal income taxes, but he’ll have to close a number of existing loopholes to do it.

Carter, the second-term Republican who chairs the powerful panel that oversaw a bevy of targeted tax cuts in the 2011 regular session, is interested in a long-term vision for tax reform in Arkansas.

He tells Talk Business that he will hold hearings in the February 2012 fiscal session to review all existing sales tax exemptions and exclusions in an effort to find a “revenue-neutral” way to reshape individual income tax brackets for Arkansans.

“A working class family with an annual income in the low $30,000 range is in the highest marginal tax bracket in Arkansas, even though that family’s income exceeds the federal poverty level by only $10,000 or so,” Carter said. “This needs to be addressed along with other tax ‘loopholes’ and how competitive we are with our surrounding states. Essentially, I’d like to see a broader base with lower rates across the board.”

Currently, Arkansans making $32,700 or more per year are in the highest personal income tax bracket — 7%. An annual salary of $19,600 will put a state taxpayer in the second highest personal income tax bracket of 6%.

Carter thinks that because Arkansas’ economy wasn’t pounded as bad as other states in the recent recession, there is a chance to make a once-in-a-generation change in the state’s tax policy.

“For several reasons, Arkansas has been able to endure the economic downturn better than most other states in the union. As such, I think that we have a small window of opportunity to consider policy changes that could make Arkansas even more competitive nationally and generally a better place to live and work,” Carter said. . . . Full Article.

Tags: Legislative Republicans, Reducing Tax Burden, Arkansas Families, Roby Brock, Talk Business, House Revenue and Tax Committee, Chairman, Davy Carter, R-Cabot

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