HB1066
To Increase The Standard Deduction.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1066 proposes an amendment to the Arkansas Code concerning the standard deduction for individual income tax purposes. The bill mandates an increase in the standard deduction from the current $2,200 per taxpayer to $4,400 per taxpayer. This change is scheduled to take effect for tax years beginning on and after January 1, 2026. The legislation specifies that this increase applies equally to individual taxpayers and to each spouse in the case of a married couple. The primary purpose of the bill is to reduce the overall taxable income for Arkansas taxpayers by allowing a larger portion of their income to be deducted before tax rates are applied.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are individual taxpayers in Arkansas, including both single filers and married couples, who will see a reduction in their total taxable income, potentially resulting in lower state income tax liabilities.
Who Might Suffer?
The state government of Arkansas would be negatively impacted in terms of budget revenue, as the increase in the standard deduction will result in a decrease in total income tax collections, potentially limiting funds available for public services and state operations.
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