Revised revenue outlook for Arkansas raises tax-cutting hopes

Gov. Asa Hutchinson and some lawmakers believe that Arkansas can afford to cut individual income taxes by more than $300 million over the next two years without negatively affecting critical state services in light of new revenue projections released this week.

Still, some believe that the plan goes too far, while others don't think it cuts taxes enough.

The state Department of Finance and Administration on Tuesday boosted its forecast for total general revenue tax collections by $350.2 million, to $7.3 billion, in the current fiscal year that ends June 30 and by $444.8 million, to $7.7 billion, in fiscal 2023, which starts July 1.

The revised forecast came the same day that Hutchinson outlined his plan to cut individual income taxes across Arkansas' three tax tables, which would also be restructured under the plan.