A committee has approved an amended version of Gov. Asa Hutchinson's tax-cut bill for middle-income earners that now delays a reduction in capital gains taxes passed in 2013.
Sen. Bill Sample introduced the amendment before the Senate Committee on Revenue and Taxation voted to approve Hutchinson's tax-cut proposal, which he made a theme of his campaign and said was a top priority after taking office.
If passed, the bill would lower the income-tax rate by 1 percent starting next year for people earning between $21,000 and $75,000.
Senate President Jonathan Dismang, R-Searcy, who presented the bill to the committee alongside House Speaker Jeremy Gillam, R-Judsonia, said the Senate could vote on it as soon as Thursday. He expressed confidence it has the votes needed to pass.
Dismang told the committee members the bill will help "working, middle-class families."
"I think that's something to be valued and something we all should be proud of," he added.
Sample's amendment repeals an act in 2013 that increased the capital gains exclusion from 30 percent to 50 percent, effective this tax year, and created an income tax exemption for capital gain received by an individual over $10 million.
The Department of Finance and Administration said the bill would lead to a $12.8 million reduction in fiscal year 2016 revenue and an $80.6 million reduction the following fiscal year.
Hutchinson, who shook hands with committee members before the meeting but left before it started, was "part of the conversation" involving the capital gains repeal, Dismang said.
"I don't know that he specifically asked" for it, Dismang said. "But of course he's trying to build his budget based on the forecast and ... was part of that discussion."
See Thursday's Arkansas Democrat-Gazette for full coverage.