Arkansas governor reworks plan to cut top income tax rate

Arkansas governor reworks plan to cut top income tax rate
pic of Arkansas State Capitol in Little Rock, AR (Source: KAIT-TV)

LITTLE ROCK, Ark. (AP) — Arkansas' Republican governor has reworked his proposal to cut the state's top income tax rate, unveiling a $97 million plan that Senate leaders say they plan to take up next week.

Gov. Asa Hutchinson on Wednesday said his latest proposal would cut the state's top marginal income tax rate from 6.9 percent to 5.9 percent over the next two years. Hutchinson had initially backed a proposal that would have cost the state $192 million once fully implemented.

Hutchinson had reworked his proposal after finance officials said it would have raised income taxes for some Arkansans. Hutchinson says that under the latest proposal no taxpayers would see a net increase in taxes paid.

Hutchinson was re-elected in November after campaigning on a pledge to push for more tax cuts.