Democrat leaders differ on proposals to reduce Arkansas taxes

While Arkansas Gov. Mike Beebe (D) continues to push for a 50 %t cut in the state's sales tax on groceries, House Speaker Benny Petrus (D) offers three tax cut bills as an alternative. Petrus has said that among his plans is an $80 million annual tax rebate for low- and middle income Arkansans. He proposes it as an alternative to Beebe's call for halving the state's 6-cent sales tax on groceries. Beebe believes the sales tax cut would provide a greater benefit to poor and middle-income families.

Petrus first bill would provide tax rebates for low- and middle-income Arkansans that would return about $80 million a year. The second part would increase the minimum taxable income for retirees and reduce taxes about $21 million a year by increasing the $6,000 of retirement benefits exempt from state income tax to $10,000. The third bill, Petrus said, would reduce the state's sales tax on manufacturers' utility bills by 3 percent and would cost about $30 million a year. READ MORE

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Tags: Arkansas, grocery tax, tax-cuts, taxes