Arkansas legislative leaders and Gov. Asa Hutchinson are tossing around proposals to reduce the state's top individual income tax rate from 5.9% to 5.5% by Jan. 1, 2023, and potentially a further cut to 4.9% depending on the impact on general revenue and the state budget.
They also are weighing whether to combine the state's low- and middle-income tax tables into one for people with net taxable income of up to $82,000 a year.
The state now has three tables, each giving the tax rates for different levels of net income: one for low-income taxpayers making less than $22,900; a second for middle-income individuals netting from $22,900 to $82,000; and a third for high-income taxpayers making more than $82,000.
Republican House and Senate leaders and the Republican governor said last week that they haven't reached a consensus on the tax cut package for a planned special session that could be sometime next month.