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Governor Announces Call for Special Session for Income Tax Cuts

On December 3rd, Governor Asa Hutchinson announced plans to call a special legislative session beginning December 7th to consider income tax cuts and related tax policy changes such as smoothing of tax brackets and an increase to earned income tax credits for low income earners. The primary income tax cuts will propose to reduce the top individual income tax rate from 5.9% to 4.9% and the corporate income tax rate from 5.9% to 5.3% with revenue triggers allowing the cuts. These proposed tax cuts follow previous tax cuts implemented by Governor Hutchinson and the General Assembly in the 2015, 2017 and 2019 legislative sessions.

The call also contains other items including legislation to move restricted reserve funds, technical language to correct the appointment process for the newly created Tax Appeals Commission, a bill to repeal legislation on insulin prices, legislation to guide appropriation of federal funds related to pandemic recovery, legislation allowing security personnel for the Arkansas House and Senate, and legislation related to recycling tax credits tied to a potential economic development project.

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