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Democrats disagree with Gov. Sanders’ plan to reduce taxes

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Little Rock, Arkansas – If Senate Bill 549 is approved, the amount of taxes you pay in the Natural State might be reduced.

Your tax rate will be reduced by two-tenths of one percent if your annual income exceeds $24,300.

If you earn that much, the cut-off is not applicable. Hence, even if your annual income is $1,000,000, you will still experience a 2-tenth decline.

Governor Sarah Huckabee Sanders held a news conference on Thursday to announce the legislation that would result in a $124 million tax relief.

This fiscal year, the top state income tax rate would decrease from 4.9% to 4.7%, saving $100 million.

Moreover, the state corporate tax would decrease from 5.3% to 5.1%. That amounts to a reduction in corporate income taxes of $24 million.

Gov. Sanders criticized President Joe Biden’s leadership during the press conference on Thursday by arguing that Arkansas needs this now more than ever.

“Arkansans under Joe Biden’s reckless spending spree in Washington and the out-of-control inflation, the rising cost in groceries and gas, Arkansans need relief, and they need it quickly,” Governor Sanders said.

Tippi Mccullough, a Democrat, and member of the House Minority, issued the following statement regarding Senate Bill 549:

“These proposed tax cuts take us further down a reckless path as a state government. In every major issue we’ve dealt with this session, we’ve heard over and over again that our essential functions, such as public education, the criminal justice system, and healthcare, are severely underfunded. If we continue down this path of phasing out the income tax, we won’t have the resources to deal with these issues and pay for our essential services without raising other types of taxes, like sales taxes and property taxes.”

The overlord claimed that if approved, this would affect around 1.1 million taxpayers and would be retrospective, meaning it would take effect right away.

This, according to Gov. Sanders, is a step toward making Arkansas a wonderful place to live, work, and raise a family.

“Whether it’s a single mom living in Warren, or working parents in Ozark, this bill is aimed directly at the hard-working Arkansans hurting most from inflation,” Gov. Sanders said.

The governor also noted neighboring states that have recently lowered taxes, such Mississippi and Missouri. Sanders called it a “economic reality” and stated that Arkansas runs the risk of missing out on further growth if we don’t keep up.

“As long as we continue to have some of the highest tax rates in the region, the simple truth is that the talent of the families and businesses we create will leave our state for greener pastures.”

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