LITTLE ROCK, Ark. (AP) – The Arkansas Senate has approved a proposed tax break for retired military veterans that will be paid for by raising taxes on unemployment benefits, soda, candy and digital downloads.
The Senate on Tuesday voted 30-0 for the proposal to exempt veterans’ retirement benefits from the state income tax. The proposed $13 million exemption now heads to the House, which a day earlier approved an identical version of the bill.
The proposal has drawn objections from some conservatives over tax increases it proposes to pay for the exemption. They include raising sales taxes on candy and soda and levying income taxes on unemployment benefits. The measure would also levy state sales taxes on e-books, digital music and ringtones.
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