Arkansas House panel endorses tax cut for top earners, but GOP leader fears full vote to fall short

Rep. Joe Jett (left) congratulates Sen. Jonathan Dismang on Tuesday after Dismang’s bill to cut top income tax rates was endorsed by the House Revenue and Taxation Committee. Jett said he’d ask for a full House vote on Thursday.
Rep. Joe Jett (left) congratulates Sen. Jonathan Dismang on Tuesday after Dismang’s bill to cut top income tax rates was endorsed by the House Revenue and Taxation Committee. Jett said he’d ask for a full House vote on Thursday.

Legislation that would enact Gov. Asa Hutchinson's plan to slice the state's top individual income tax rate cleared an Arkansas House committee Tuesday, after its proponents said it would make the state more economically competitive.

But its foes decried granting tax breaks to the wealthiest residents when Arkansas has other, more pressing needs.

House Republican leader Marcus Richmond of Harvey said afterward that Republicans are short of the required 75 votes for approving the legislation in the 100-member House. The House has 76 Republicans and 24 Democrats.

Hutchinson's latest tax-cut plan would trim the top individual rate from 6.9 percent to 5.9 percent over a two-year period. It is projected by state officials to reduce tax revenue by $97 million a year after it's fully implemented.

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