Arkansas governor says he's opposed to grocery tax hike - KAIT Jonesboro, AR - Region 8 News, weather, sports

Arkansas governor says he's opposed to grocery tax hike

(Source: KAIT-TV) (Source: KAIT-TV)

LITTLE ROCK, Ark. (AP) - Arkansas' governor says he's opposed to raising the state's sales tax on groceries after a legislative panel voted to study the idea as a way to pave the way for further income tax cuts.

Republican Gov. Asa Hutchinson told lawmakers Thursday he's opposed to raising the 1.5 percent sales tax on groceries, which is set to decrease next year to .0125 percent. A task force looking at ways to further reduce income taxes voted last week to study proposals to raise the tax and, in conjunction, creating a credit or rebate for moderate and low income residents to offset the hike.

Hutchinson had initially stayed out of the debate on the tax increase proposal. Hutchinson has proposed a $180 million income tax cut for the state's top earners next year.

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