State talks reducing top tax rate

[TexasTowelie]

LITTLE ROCK—Arkansas officials are proposing income tax changes estimated to reduce state revenue by nearly $192 million a year.

The Arkansas Department of Finance and Administration unveiled the proposed tax relief package Wednesday to the Legislative Tax Reform and Relief Task Force, the Arkansas Democrat-Gazette reported .

The proposal this week seeks to simplify rates and tax brackets by turning Arkansas' three individual income tax tables into a single table. The top rate would also gradually be cut from 6.9 percent to 5.9 percent, making a total reduced revenue of $191.7 million a year.

"When you look at this thing fully phased in at 5.9 percent, it seems like an extremely effective way to get $200 million in income tax relief, where nobody pays more taxes, everybody sees some benefits," said Republican Rep. Charlie Collins. "It is a very simple (income tax) code. There are a few brackets, and it is well-structured for future tax relief."

Read more: http://www.texarkanagazette.com/news/arkansas/story/2018/aug/24/state-talks-reducing-top-tax-rate/740223/