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Here's what tax cuts are coming for Arkansans and what it means

Gov. Sarah Sanders called a special session that kicked off on Monday. Here's what was discussed during the first day and what it means for income tax in Arkansas.

LITTLE ROCK, Ark. — The first special session under Governor Sarah Sanders officially gaveled on Monday morning. 

Lawmakers flocked to Little Rock to discuss multiple topics that will affect Arkansans.

Possibly the two largest topics are changes to the state's FOIA laws, a way in which anyone can request documents from government officials. Also important are potential changes to the state's income tax laws.

The Senate version of that bill, sponsored by Senator Jonathan Dismang (R-Beebe) passed out of committee on Monday afternoon.

"It'll be on our floor tomorrow, and we'll send it over to the House and let them dispose of the bill," he said. "Again, I don't expect that we'll have any road bumps."

For many Arkansans, those potential tax cuts, if approved, would change tax rates. Representative Les Eaves, R-Searcy, sponsored the House version of the bill.

"Keep Arkansas competitive, so this time, our proposal would be to reduce the personal income tax rate down to three-tenths of a percent," Eaves explained. "Then also on the corporate side, down three-tenths of a percent."

That would change individual rates down to 4.4% from 4.7%, and corporations go from 5.1% to 4.8%. These bills would also give anyone who makes less than $90,000 a year a $150 tax credit.

Eaves and Dismang pointed to our state surplus as a reason to push this forward.

"I know there's some folks that would really like the state of Arkansas to keep that and spend that, but in my personal opinion and I hope my colleagues, we're gonna be sending that back to Arkansas taxpayers," Dismang described.

Others oppose the bill. 

State Senator Greg Leding (D-Fayetteville) explained how he doesn't understand where the rush is coming from.

"I see no urgent need for this special session," Leding said. "Back in early August, Republican leaders said tax cuts could wait until early 2024, and yet here we are just about a month later."

For more information on those bills, click here.

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