This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ark. Panel Advances Income, Capital Gains Tax Cuts

"While eliminating the income tax is not realistic for us in any kind of near term, getting ourselves into a more competitive position will help Arkansans get jobs," said Rep. Charlie Collins, R-Fayetteville, who also chairs the tax committee.

Opponents of the cut, however, pointed to a study by the Institute on Taxation and Economic Policy that said Arkansas taxpayers who making more than $155,000 a year would receive half of the total benefits resulting from the cut.

"This bill would just exacerbate the current overall regressivity of the system," said Rich Huddleston, executive director of Arkansas Advocates for Children and Families.

The panel tabled a separate proposal backed by Huddleston's group that would have created a state Earned Income Tax Credit for low-income Arkansans. That measure would have cost the state about $40 million a year.

The panel also endorsed Carter's proposal to increase the income tax exemption on capital gains of at least $5 million from 30 percent to 70 percent. It would also create a 70 percent exemption for any net capital gains relating to the sale of Arkansas property acquired after Jan. 1, 2014.

State finance officials estimated the cut would cost the state $3.1 million next year, and said that figure would grow to nearly $28 million by 2017.

The Arkansas Department of Finance and Administration, however, warned that the figure could grow if Carter's proposal is challenged in court for giving preferential treatment to Arkansas property. In a fiscal impact statement submitted to lawmakers, the department said that treatment likely violates the commerce clause of the U.S. Constitution. If that challenge is successful, the revenue loss from the cut could reach $60.4 million by 2017, the statement said.

Carter said he'll look at changes to address that concern but said he wasn't sure whether the department's legal analysis was correct. Carter said the intention of his bill was to help spur investment in Arkansas.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs