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Lawmakers say deal made on $35 million in tax cuts

By The Associated Press

This article was originally published March 17, 2011 at 10:25 a.m. Updated March 17, 2011 at 12:44 p.m.


Gov. Mike Beebe arrives Tuesday at the state Capitol, where he told sponsors of House Bill 1895 of his concerns about language in the bill.

House and Senate leaders say they’ve reached a deal to allow passage of $35 million in tax cuts that includes Gov. Mike Beebe’s proposal to reduce the sales tax on groceries.

The co-chairs of the Joint Budget Committee said Thursday that both chambers have agreed to reducing proposed cuts for used cars and manufacturers’ utilities to lessen the impact on the state’s coffers. The other tax cuts part of the package include an annual back-to-school sales tax holiday, an expansion of a tax credit for ecotourism and a tax cut for single parents.

Beebe earlier Thursday said he agreed principle with a tax cut agreement, but wanted adjustments to reduce the impact on the state’s budget. Originally, all of the proposals would have cost the state nearly $40 million.

Beebe has contended the grocery tax, which is estimated to cost the state $20.8 million in the coming year, is the only reduction Arkansas can afford in his proposed $4.6 billion balanced budget for the coming year. Republicans in the majority-Democrat Legislature have said they believe other cuts can be funded by paring back some of the spending increases in Beebe’s proposed budget.

Comments on: Lawmakers say deal made on $35 million in tax cuts

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Displaying 1 - 3 of 3 total comments

richweav says... March 17, 2011 at 10 p.m.

If the Demtards love the poor so much, why do they always resist lowering taxes for them? Like Slick Willie. Never met a tax he didn't like.

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cypress7 says... March 17, 2011 at 10:56 p.m.

Gov. Beebe,that suit and car looks nice,could you cosign a loan for the unemployed so I can Pay Entergy,Centerpoint, Windstream.local water
just asking.
I will be checking my mail.

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RufustheRed says... March 18, 2011 at 3:25 a.m.

Disabled Retired American here on fixed income. How about a tax cut for us? I liked to be able to put gas in my automobile, buy groceries, buy prescriptions, etc., but i know that is not going to happen. How about you government types giving up you government cars and health care for awhile? NAH, ain't never going to happen. Let's keep those cards and letter coming and oh yeah don't forget to vote people.

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