Tax credit for low-income Arkansans rejected by House panel

LITTLE ROCK — An Arkansas House panel has rejected a proposal to give tax credits to low-income residents, despite complaints by Democrats that the Legislature hasn't helped the state's poorest residents with its tax cut package.

The House Revenue and Taxation Committee on Tuesday rejected a proposal that would have provided a credit for thousands of Arkansans currently receiving the federal earned income tax credit. The proposal is not estimated to cost the state in the coming fiscal year, and will cost $10 million the following year. It's estimated to eventually cost the state $40 million a year.

Democratic Rep. Warwick Sabin said his proposal would have helped people who won't benefit from a $102 million income tax cut approved last month or an effort to restore a capital gains tax break.

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