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Taxes & Budget

HCR1001

To Urge Congress To Permanently Extend The Tax Cuts And Jobs Act Of 2017.

Passed

Last Action (Feb. 9, 2023): Approved by the Governor

Sponsors

AI-Generated Summary

HCR 1001 is a House Concurrent Resolution from the Arkansas General Assembly that formally urges the United States Congress to permanently extend the provisions of the federal Tax Cuts and Jobs Act of 2017. The resolution argues that the 2017 legislation spurred economic growth, increased household income, and enhanced American competitiveness by lowering tax rates for individuals and businesses. It highlights that many individual income tax provisions are set to expire after December 31, 2025, and contends that allowing them to lapse would result in tax increases, job losses, and reduced wages. Furthermore, the resolution supports the continuation of the current $10,000 cap on state and local tax (SALT) deductions, suggesting that an unlimited deduction encourages higher state spending and taxes. Finally, the Arkansas legislature requests that any extension of these tax cuts be paired with commensurate federal spending cuts to avoid increasing the national debt.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries of this resolution would be individual taxpayers and business owners who rely on the lower personal and corporate income tax rates established by the 2017 Act. If the act were extended, middle- and working-class families would avoid a projected federal tax increase, and corporations would retain the lower 21% tax rate, which supporters argue stimulates investment and job creation.

Who Might Suffer?

Those who might be negatively impacted include proponents of increased federal spending, as the resolution explicitly links the extension of tax cuts to a requirement for commensurate spending cuts. Additionally, taxpayers in high-tax jurisdictions who advocate for the removal of the $10,000 cap on the State and Local Tax (SALT) deduction would be negatively impacted by the bill's support for maintaining that cap, as they would continue to face higher federal tax liabilities compared to a system with an unlimited deduction.

Read Full Bill on arkleg.state.ar.us