SB 115, Gov. Asa Hutchinson's
TAX BILL LEADER: Sen. Jim Hendren in committee today.
proposal to cut the state income tax
for those making less than $21,000, zipped out of Senate committee this morning. It will cost $50 million to extend the benefit. It's looking greased.
Advocates for an earned income tax credit as a better way to help poor workers and stimulate the economy are continuing to press their case. But, they acknowledge, both the tax cut and the EITC aren't likely to be approved. That means the governor's bill is the odds-on favorite to make it through.
PS: A reader notes a point worth remembering. This tax cut takes effect for the tax year of 2019. So it might be felt in withholding on paychecks in 2019, but shows up offically on tax returns filed in 2020, three years from now. That is, this tax cut has no impact on revenue until January of 2019 at the earliest, the second half of a fiscal year budgeted a year from now.