Gov. Sarah Huckabee Sanders Celebrates Tax Cuts for Arkansans
The bills would lower the top individual rate to 3.7% and the corporate rate to 4.1%, with revenue losses estimated at more than $190 million next year.
- On Tuesday, the Arkansas Legislature passed bills cutting the top individual income tax rate from 3.9% to 3.7% and the corporate rate from 4.3% to 4.1%, advancing Governor Sarah Huckabee Sanders' priority.
- Lawmakers convened in a special session called by Sanders last week to finalize the cuts, which are retroactive to Jan. 1, 2026, for individuals, while the corporate reduction takes effect in 2027.
- Representative David Ray defended the legislation, stating, "By lowering taxes, we are giving workers a pay raise," though state estimates project revenue will drop by over $190 million next fiscal year.
- Democratic lawmakers opposed the measure, with Representative Ashley Hudson arguing funds could address infant mortality, rural hospital closures, and underfunded schools rather than tax cuts for the wealthy.
- The Senate approved the measure 29-6 and the House passed it 79-17 along strict party lines, reflecting deep divisions over prioritizing tax relief versus funding essential state services.
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Governor Sanders and Arkansas Republicans Deliver Yet Another Income Tax Cut - Americans for Tax Reform
Arkansas leaders have once again delivered for taxpayers. Governor Sarah Huckabee Sanders and legislative Republicans have continued their strong record of pro-growth tax reform by advancing another round of income tax cuts that will further strengthen the state’s economy and put more money back in the pockets of hardworking Arkansans. In recent years, Arkansas has made significant progress improving its tax climate. Lawmakers have steadily redu…
Arkansas Gov. Sarah Huckabee Sanders signs tax-cut acts at end of legislature’s special session
Arkansas Gov. Sarah Huckabee Sanders signed three pieces of legislation that lower individual and corporate taxes, and raise the Homestead Tax Credit, returning over $1.5 billion to taxpayers since she took office.
Sanders signs bills to cut Arkansas' individual and corporate tax rates
Gov. Sarah Huckabee Sanders on Wednesday signed into law identical bills that will trim the state’s top individual and corporate income tax rates — the fourth income tax rate cut during her nearly 3½ years at the helm of state government.
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