LITTLE ROCK — The Arkansas Senate is considering cutting Arkansas' taxes on groceries and used cars, a week after the House approved three tax cuts that Gov. Mike Beebe says the state can't afford.
The Senate Revenue and Taxation Committee is expected to vote on a half-cent cut in the sales tax on groceries advocated by Beebe. The tax cut, if approved, would take effect July 1 and cost the state $20.8 million.
The panel is also scheduled to consider raising the sales tax exemption on used cars from $2,500 to $5,000, which would cost the state about $5.8 million.
Beebe has said the state can't afford any tax cuts other than the grocery tax he's advocating. The House last week approved cutting taxes on capital gains, manufacturers' utilities and single parent income.