Arkansas governor delays plans for session on tax cuts

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LITTLE ROCK, Ark. (AP) — Arkansas Gov. Asa Hutchinson on Tuesday backed off plans to call the Legislature back to the Capitol next week to take up income tax cuts as he continued negotiating with lawmakers on how much to reduce.

The Republican governor delayed the special session he expected to call for the income tax cut proposal, which he said would cost the state $321 million a year once fully implemented in 2023. Hutchinson did not say when he planned to convene the majority-Republican Legislature, though he said hoped to do so before Thanksgiving.

“We need more time,” Hutchinson told reporters.

Hutchinson’s proposal calls for reducing the state’s top income tax rate from 5.9% to 5.3% by 2023. It also calls for increasing a tax credit for those making less than $22,900 and for combining the low- and middle-income tax tables.

But Hutchinson has faced calls from some fellow Republicans to go further with his tax cut plans and to also include reductions in the corporate income tax rate. Legislative leaders said delaying the special session will give lawmakers the governor more time to work out a deal.

“While I think that there is a proposal coming together on tax reduction that will have broad-based support, I think there’s still just some details to finalize and preparations to be made as we move into a special session,” House Speaker Matthew Shepherd, a Republican said.

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