News across several media outlets is that the Arkansas Legislature has (finally) reached a deal to provide $35 million in tax cuts for the upcoming fiscal year.
The proposal is reported to include the only tax cut Gov. Mike Beebe has said the state can afford with its $4.6 billion budget — the infamous half-cent groceries tax cut — but also adds in a number of other measures, including, but not limited to:
* Rep. Matthew Shepherd’s sales tax-holiday.
* An expansion of the income tax credit for geotourism from $100,000 to $250,000.
* A tax cuts for single parents.
* A $4,000 (knocked down from $5,000) exemption on used cars.
* A six-month delay in implementing utility cuts for manufacturers.
The revenue lost will be made up for by a decrease to the 1.8 percent cost-of-living adjustment for state employees and that the COLAs would strictly be for people making under $50,000 a year.
The agreement still faces voting in the House and Senate before it can reach the governor’s desk.
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