Rep. Jim Dotson (R-Bentonville) introduced today a bill to cut the top rate on the individual income tax from its current 5.9 percent to 5.4 percent in 2022 and 4.9 percent in 2023, a tax cut of better than 17 percent for the highest-income taxpayers.
Previous studies have shown a disproportionate share of the gravy will be ladled on the wealthy. Which is the point.
There are some inconsequential reductions in the income tax for those with smaller earned incomes. But by my reading, in 2023, people making less than $8,000 would still pay income tax at the same rate as they pay today — 2 percent on income up to $4,000 and 4 percent on the amount between $4,000 and $8,000.
Somebody is getting trickled on here.
Tax cutting is the aim of a soon-to-be-announced special session, which Governor Hutchinson has said he’ll call when he finds consensus on just how much to cut. Discussion of state needs and funding them apparently are not on the table.
I look forward to a new analysis by Arkansas Advocates for Children and Families on the Republican Party’s soak the poor fiscal agenda. Pennies in tax cuts. Dollars in lost state services.