The Arkansas Senate has approved a tax break for military veterans after the measure drew objections from conservatives over a plan to raise taxes on soda, digital downloads and unemployment benefits to pay for the exemption.
Local Senator Missy Irvin voted for the measure and has this report.
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Vets Bill
…miltary retirement benefits
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Senate Bill 120 is identical to House Bill 1162, which was approved earlier, and would exempt military veterans’ retirement benefits from the state income tax.
Senator Scott Flippo, whose District covers Boone, Baxter and Marion County and Senator Linda Collins-Smith, whose District covers parts of Izard and Fulton Counties, voted present.
Supporters say the $13 million exemption would help draw more veterans to the state.
Senator Missy Irvin says there are more reasons the bill has her support.
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Opponents criticize the plan to offset the exemption with increases elsewhere. The offsets include levying state sales taxes on e-books, digital music and ringtones. The measure also calls for levying the full 6.5 percent sales tax-rather than the lowered 1.5 percent rate for groceries on soda and candy and making unemployment benefits subject to income taxes.
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