Tax cuts may not relieve many from financial burdens, professor says
JONESBORO, Ark. (KAIT) - Arkansas lawmakers finished up the recent special session on Thursday, Aug. 11, ending with a record-breaking tax cut.
The measure would drop the state income tax to 4.9%, but what does this mean for an everyday Arkansan?
Gary Latanich, a former economics professor at Arkansas State University, explained although the rate drops, many people in the state won’t see any change in their livelihood.
“Cutting the upper tax bracket individuals at the top,” he said. “Benefits none of the people in Arkansas who really need it.”
The package includes some financial relief for the low-income and middle classes.
$150 will be given to people in those categories as a non-refundable tax credit when their taxes are filed in 2023.
“There is some benefit there. You will get some money, but it’s a long time coming. It’s going to do nothing for you now,” Latanich said.
He said by the time that comes around, the value of a dollar will not be the same as inflation continues.
“Prices are rising at 9%, so this time next year, things will cost 9% more. The value of that tax cut will be 9% less,” Latanich said.
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