Two significant tax cut measures are now heading to the House floor. The House Revenue and Taxation Committee voted in favor of HB1159 known as the Tax Reform and Relief Act and HB1161, known as the Working Families Opportunities Act.
HB1159 targets tax cuts to those making under $21,000 a year. It is projected to lower taxes for 650,000 Arkansans at a cost of $50 million.
HB1161 provides an earned income tax credit for those who already qualify for the federal credit. The state credit for an individual would equal 5% of their federal credit. This bill is projected to have a $40 million impact on the state budget.
The full House will hear both proposals next week.
Meanwhile, the House passed HB1033 this afternoon. This legislation is designed to reduce the number of Arkansans with developmental disabilities who are on a waiting for services.
This bill would divert $8.5 million from the tobacco settlement fund to fund the services. This money is currently not being used on any other program.
House Rules state the House will not be in session on the day of the Presidential Inauguration. The House will reconvene on Monday at 1:30.