HB1097
To Reduce The Top Marginal Tax Rate For Individual Taxpayers.
Last Action (Jan. 9, 2023): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1097 seeks to amend the Arkansas state income tax code by reducing the top marginal income tax rate for individual taxpayers, trusts, and estates. Specifically, the bill lowers the highest tax rate from 4.9% to 4.5%. This adjustment applies to individuals with net income between $23,600 and $84,500, as well as those with net income exceeding $84,500. The proposed change is intended to be effective for tax years beginning on or after January 1, 2023. The bill clarifies that it does not retroactively affect tax obligations that arose prior to that date.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are individual taxpayers, trusts, and estates in Arkansas that fall within the income brackets subject to the top marginal tax rate, as they would see a reduction in their overall state income tax liability.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas, which would experience a reduction in general tax revenue. This potential decrease in state funding could impact the government's ability to finance public programs, services, and infrastructure projects.
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