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Senate panel OKs tax exemption for military pay
By The Associated Press
This article was published March 6, 2013 at 1:03 p.m.
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A Senate panel has approved exempting active armed services members' pay from Arkansas' income tax, the first major tax cut headed to a vote in this year's session.
The Senate Revenue and Taxation Committee on Wednesday advanced the proposal, which officials say will cost Arkansas about $7.2 million annually. The lawmaker behind the proposal says the exemption would benefit about 6,300 people.
Lawmakers backed the proposal despite warnings from state finance officials that there's no money in Gov. Mike Beebe's proposed balanced budget for additional tax cuts.
The chairman of the Senate panel says he expects lawmakers to take up more proposed reductions now that a projected shortfall in Arkansas' Medicaid program has been reduced.
Last week, House Speaker Davy Carter called for $150 million in tax cuts this session.
Comments on: Senate panel OKs tax exemption for military pay
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tesbrown1101071440 says... March 6, 2013 at 1:25 p.m.
I think we ought to leave this one alone, revenue is coming in to state coffers and it only benefits 6300 people. leave it alone!
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Bart says... March 6, 2013 at 5:10 p.m.
Yeah tesbrown, you would not want to give a break to these 6,300 ACYIVE DUTY military members, most are likely not even in the State! A handful of crackheads and welfare moms need the money more.
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