Natural State News

An Arkansas special session for a possible income tax reduction may be scheduled by the governor soon.

Gov. Asa Hutchinson recently mentioned that "as soon as we get the votes lined up,” there would be a special session called to consider an income tax reduction in the state, according to Talk Business & Politics. 

Citizens in the state would support getting rid Arkansas' personal income, a recent Talk Business & Politics-Hendrix College poll showed.

Gov. Asa Hutchinson | Facebook

Key legislative leaders that have emerged include state Sen. Jonathan Dismang (R-Searcy), who recently said of the primary tax cut proposal: "To me, this strikes the right balance of making sure that we are providing tax relief (and) simplification to working families, and then also showing that we are willing to be competitive on income taxes with our neighbors." 

Dismang's proposal decreases the number of tax brackets in the state from three to two, according to the Arkansas Democrat-Gazette.

State Sen. Trent Garner (R-El Dorado) filed a bill in March that would eliminate the income tax in the state entirely. The last action taken on that bill was in April when it was assigned to be further studied by the Senate's Interim Committee on Revenue & Tax, according to the legislature's website.

Legislators noted that Arkansas' neighboring states had lower income tax rates and were actively moving towards lowering them further. Supporters claim the income tax reduction will make the state more competitive, Natural State News reported Oct. 12.

The median income household in Arkansas could expect around $300 in tax savings per year if sharp cuts are made and both proposals are implemented, according to Joseph Johns and Jeremy Horpedahl of the Arkansas Center for Research in Economics. Many families could see even more savings.