Arkansas lawmakers advanced what would be the state’s fourth income tax cut in four years Monday despite critics’ warnings that reducing revenue could jeopardize social services.
Senate Bill 1 and House Bill 1001 would cut the top individual income tax rate from 3.9% to 3.7% retroactive to Jan. 1, 2026, and the corporate tax rate from 4.3% to 4.1% effective Jan. 1, 2027. The Revenue and Tax committees in both chambers passed their respective bills Monday, the first day of a special session expected to end Wednesday.
Republican officials, including Gov. Sarah Huckabee Sanders, support phasing out the state’s income tax entirely as Tennessee and Texas have done…