Arkansas

TexasTowelie

(116,898 posts) Sat Aug 25, 2018, 05:44 AM Aug 2018

State talks reducing top tax rate

LITTLE ROCK—Arkansas officials are proposing income tax changes estimated to reduce state revenue by nearly $192 million a year.

The Arkansas Department of Finance and Administration unveiled the proposed tax relief package Wednesday to the Legislative Tax Reform and Relief Task Force, the Arkansas Democrat-Gazette reported .

The proposal this week seeks to simplify rates and tax brackets by turning Arkansas' three individual income tax tables into a single table. The top rate would also gradually be cut from 6.9 percent to 5.9 percent, making a total reduced revenue of $191.7 million a year.

"When you look at this thing fully phased in at 5.9 percent, it seems like an extremely effective way to get $200 million in income tax relief, where nobody pays more taxes, everybody sees some benefits," said Republican Rep. Charlie Collins. "It is a very simple (income tax) code. There are a few brackets, and it is well-structured for future tax relief."

Read more: http://www.texarkanagazette.com/news/arkansas/story/2018/aug/24/state-talks-reducing-top-tax-rate/740223/

5 replies

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State talks reducing top tax rate (Original Post) TexasTowelie Aug 2018 OP

So how are they going to pay their huge debt if they reduce revenue? Farmer-Rick Aug 2018 #1

That means there are only 9 states with a lower debt. sinkingfeeling Aug 2018 #2

No, the data I was looking at had Alabama at the bottom with the next state down having even more Farmer-Rick Aug 2018 #3

This is the data from 2015. sinkingfeeling Aug 2018 #4

Yeah, I saw that. Farmer-Rick Aug 2018 #5

Farmer-Rick

(11,435 posts)

1. So how are they going to pay their huge debt if they reduce revenue?

Reply to TexasTowelie (Original post)

Sat Aug 25, 2018, 06:52 AM

Aug 2018

They are ranked 41 highest debt owed (44 per capita) among the 50 states and that does not include local debt.

Reducing income when your debt is so large does NOT sound like a smart thing to do.

sinkingfeeling

(53,027 posts)

2. That means there are only 9 states with a lower debt.

Reply to Farmer-Rick (Reply #1)

Sat Aug 25, 2018, 10:09 AM

Aug 2018

Farmer-Rick

(11,435 posts)

3. No, the data I was looking at had Alabama at the bottom with the next state down having even more

Reply to sinkingfeeling (Reply #2)

Sat Aug 25, 2018, 11:15 AM

Aug 2018

Debt in raw numbers. But now I can't find it....maybe it was old data because all I can find now is listing Alabama as above average in financial stability. And yet the state poverty is so horrible it shocked a UN study. You would think they would use the money to improve the poverty in the state instead of giving the rich yet another tax break.

sinkingfeeling

(53,027 posts)

4. This is the data from 2015.

Reply to Farmer-Rick (Reply #3)

Sat Aug 25, 2018, 12:10 PM

Aug 2018

37. Arkansas
> Debt per capita: $1,522 (5th lowest)
> 2015 Unemployment rate: 5.2% (tied-25th highest)
> Credit rating: Aa1/AA
> Poverty: 19.1% (4th highest)

With a median household income of $41,995 a year, Arkansas is the second least wealthy state in the country. Arkansas is also one of just a few states without any reserve coffers. Despite lower resident incomes and limited savings, Arkansas has managed to maintain a fairly balanced budget without amassing large debt. The state’s debt is equivalent to just 19.4% of total revenue, far less than the 48.7% average across

https://247wallst.com/special-report/2016/12/06/the-best-and-worst-run-states-in-america-2/9/

Farmer-Rick

(11,435 posts)

5. Yeah, I saw that.

Reply to sinkingfeeling (Reply #4)

Sat Aug 25, 2018, 02:09 PM

Aug 2018

They should use their budget to reduce poverty instead of another tax give away to the rich.

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