An Arkansas House panel has rejected a Democratic-backed proposal to create a tax credit for low-income residents.
The House Revenue and Tax Committee on Thursday rejected the proposal to create a credit that would be based on 10 percent of the federal Earned Income Tax Credit. State finance officials say the credit would cost the state more than $76 million a year.
The proposal was rejected as the House prepared to vote on Republican Gov. Asa Hutchinson's $97 million proposal to cut the state's top income tax rate. House leaders have said they're unsure if the proposal, which was approved by the Senate last week, has the 75 votes needed to win final legislative approval.
[FULL COVERAGE: Keep up with the latest from the Arkansas Legislature here]