NFIB Arkansas supports responsibly eliminating the state’s income tax.
LITTLE ROCK (Sept. 8, 2023) – Upon Governor Sarah Huckabee Sanders’ call for a special session to cut the state income and corporate tax rates, NFIB State Director Katie Burns applauded the announcement and urged lawmakers to keep small business owners in mind during the negotiations.
“NFIB-Arkansas members are grateful the Governor is working to uphold her commitment to responsibly phasing out our state’s income tax. The tax cuts from the regular session were just the first step of many. Once the income tax is fully eliminated, our state will be more competitive with neighboring states, and small businesses will be better positioned to create jobs, raise wages, and expand their operations. We look forward to working with lawmakers to ensure small businesses can continue to thrive.”
Background:
NFIB Arkansas supported the $186 million tax relief passed during the 94th General Assembly’s Regular Session, which was retroactive and went into effect on January 1, 2023. The tax reform decreased the individual top rate from 4.9% to 4.7%. For Arkansas-based corporations, as well as those domiciled outside the state, the tax rate decreased from 5.3% to 5.1%.
In today’s press conference, Governor Sanders announced her intent to support legislation that would cut personal income taxes by $250 million and corporate taxes by $58 million. This would result in a top rate of 4.4% and 4.8%, respectively. The Governor also announced that the legislation would establish a reserve fund of $710 million in order to slowly phase out state income tax, as well as a one-time retroactive tax credit of $150 to those making less than $90,000.
