Governor Hutchinson, as expected, has announced a special session to cut income taxes on the strength of a record $1.6 billion state surplus. He said:
This represents the largest surplus in Arkansas history and demonstrates the state is collecting too much in tax revenue. Our collections are above last year, despite the tax reductions enacted last year. This growth is attributable to the state’s dynamic job creation coming out of the pandemic and increased consumer buying power.
ek of August 8. The specific items on the call in addition to tax relief will be announced at a later time as further discussions are held with the General Assembly.”
No reference to the possibility that the state isn’t spending enough on teachers, support for poor parents (whose numbers will increase thanks to the abortion ban), prisons and other public obligations. Specifics of the tax cuts will be interesting. Inevitably, the majority of the tax cuts will go to the highest-income individuals. The question is whether any scraps will be tossed to the working poor and whether still more tax cuts will be given to businesses, who already contribute a smaller share of the state tax take than individuals (about 20 percent of individual payments).
The governor has a scheduled news conference Thursday that perhaps could reveal more about the session.
The rabble-rousers at ForARPeople listed some good ways to spend money in these difficult times.
child care assistance programs
paid family leave
affordable or universal healthcarehttps://t.co/5PG17nQzkB
— For AR People (@ForARPeople1) July 2, 2022
Check this list of where the legislature has fallen short in just one area:
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