5.9 Tax Cut Plan

5.9 Tax Cut Plan

Governor Asa Hutchinson joined legislative leadership Wednesday afternoon to announce details of his plan to reduce Arkansas’s top marginal tax rate from 6.9 percent to 5.9 percent in only two years. The 5.9 Tax Cut Plan allows the state to lower its tax rate by a full percentage point for nearly half the cost of earlier proposals. In addition, the plan will significantly flatten and simplify the state’s top income tax bracket.

“I am pleased with the work that legislators have put in to help us finalize the 5.9 Income Tax Cut Plan,” Governor Hutchinson said. “This is the next necessary step in reforming our tax code so that we can compete with other states in recruiting new business and retaining the companies that already are here.

“This is the third phase in my tax-reduction plan, which began with the biggest income tax cuts in the history of Arkansas in 2015 and 2017. I want to emphasize that under this plan, no one will pay more in income taxes. This plan, combined with the next reduction in the grocery tax, will allow more Arkansans to keep more of their paycheck.”    MORE

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