{"id":361,"date":"2017-01-19T23:11:53","date_gmt":"2017-01-19T23:11:53","guid":{"rendered":"http:\/\/arknews.org\/?p=361"},"modified":"2017-01-21T20:54:46","modified_gmt":"2017-01-21T20:54:46","slug":"rival-tax-relief-plans-clear-house-committee","status":"publish","type":"post","link":"https:\/\/arknews.org\/index.php\/2017\/01\/19\/rival-tax-relief-plans-clear-house-committee\/","title":{"rendered":"Rival tax relief plans clear House committee"},"content":{"rendered":"

Both Governor Hutchinson\u2019s tax cut for low-income earners and an alternative low-income tax relief bill calling for an Earned Income Tax Credit advanced on a voice vote in the House Revenue and Tax committee Thursday at the state Capitol.<\/p>\n

Both bills are expected to come up for a vote when the full House convenes again on Monday, according to House Speaker Jeremy Gillam (R-Judsonia)<\/strong>. It\u2019s also expected that the governor\u2019s tax cut proposal will be voted on in the Senate on Monday.<\/p>\n

The bills were presented back-to-back in the House tax committee Thursday. The governor\u2019s proposed $50 million tax cut is projected to benefit the 657,000 Arkansans who earn less then $21,000 a year. The bill also creates a legislative task force on tax reform.<\/p>\n

House Majority Leader Matthew Pitsch (R-Fort Smith)<\/strong>, the lead sponsor of the House bill outlining the governor\u2019s tax cut proposal, told the House tax committee that the governor has set a priority to decrease taxes for low-income earners.<\/p>\n

\u201cIf you\u2019re for that, then you\u2019re for this bill. If you aren\u2019t for that, then you\u2019re not for this bill,\u201d Pitsch said.<\/p>\n

The second tax relief bill presented calls for an Earned Income Tax Credit based on an individual\u2019s income. A federal EITC has been in place since the 1980s. It provides incentive for work because the credit amount rises as income increases. An Arkansas EITC would create a refundable credit equal to 5 percent of the federal EITC.<\/p>\n

\u201cIt\u2019s been designed by some very smart people to be as efficient as possible,\u201d Rep. Warwick Sabin (D-Little Rock)<\/strong>, lead sponsor of the EITC bill, told the tax committee. \u201cWe\u2019re not spending more than we have to on this credit, but we\u2019re certainly achieving the goal of targeting this low-income population and moving them into the workforce.\u201d<\/p>\n

\"\"
Rep. Warwick Sabin (D-Little Rock) presents an alternative tax relief bill to the House Revenue and Tax Committee Thursday.<\/figcaption><\/figure>\n

According to legislative impact statements released by the Department of Finance and Administration, the governor\u2019s tax plan would reduce general revenue by $25.25 million in FY2019 and by $50.5 million in FY2020. Sabin\u2019s EITC plan would reduce general revenue by $40 million in FY2018.<\/p>\n

Representatives from Southern Bancorp, Entergy and Arkansas Advocates for Children and Families testified for the EITC bill. David Ray, the state director for the Arkansas chapter of Americans for Prosperity, testified against it.<\/p>\n

Rep. Jim Dotson (R-Bentonville)<\/strong> said he voted for Pitsch\u2019s bill, but he did not vote to advance Sabin\u2019s bill out of committee.<\/p>\n

\u201cWe\u2019ll see what the House does and the Senate,\u201d Dotson said. \u201cWe can\u2019t pass both or we risk doing what Kansas did and really upsetting the apple cart in our state budget.\u201d<\/p>\n

Dotson said he doesn\u2019t know what will happen when the full House votes, but he will vote against the EITC in favor of the governor\u2019s plan.<\/p>\n

Rep. Charlie Collins (R-Fayetteville)<\/strong> also voted to advance Pitsch\u2019s bill, but not to advance Sabin\u2019s bill.<\/p>\n

\u201cI\u2019m not going to support [an EITC], but I would be supportive of sending it to the tax reform task force for consideration as part of a lot of other things,\u201d Collins said.<\/p>\n

Rep. Joe Jett (R-Success)<\/strong>, chair of the House Revenue and Tax committee, had initially told committee members that he would run the governor\u2019s proposed tax cut proposal this week, while saving all other tax cut bills, including Sabin\u2019s, until the end of the session, but Jett said over the weekend he reflected on that decision and changed his mind.<\/p>\n

\u201cI don\u2019t want to start just throwing gasoline right out of the gate and have to deal with that all session long,\u201d Jett said. There are 10 Republicans and 10 Democrats on the House Revenue and Tax committee.<\/p>\n

Jett said he voted yes to advance both bills out of committee, but he would not say how he would vote when they come up in the House.<\/p>\n

\u201cSomething\u2019s going to have to give here,\u201d Jett said. \u201cI\u2019m going to hold judgment and wait and see if they work out some kind of compromise.\u201d<\/p>\n

House Speaker Gillam told reporters he was not sure how members would vote on Monday.<\/p>\n

\u201cI hear more conversation about the governor\u2019s proposal than I have Rep. Sabin\u2019s proposal at this point, so that would lead me to believe that more than likely that\u2019s where the members will be at,\u201d Gillam said, \u201cbut that\u2019s a supposition at this point.\u201d<\/p>\n

Gillam said he\u2019s inclined to vote for Pitsch\u2019s bill, but he\u2019ll keep an open mind.<\/p>\n

In the Senate, the governor\u2019s proposal is expected to pass on Monday.<\/p>\n

\u201cI would be very surprised if it didn't have very broad-base support in the Chamber,\u201d said Senate President Jonathan Dismang (R-Searcy)<\/strong>. Dismang says he will vote in support of the governor\u2019s proposal.<\/p>\n","protected":false},"excerpt":{"rendered":"

Both Governor Hutchinson\u2019s tax cut for low-income earners and an alternative low-income tax relief bill calling for an Earned Income Tax Credit advanced on a voice vote in the House Revenue and Tax committee Thursday at the state Capitol. Both bills are expected to come up for a vote when the full House convenes again […]<\/p>\n","protected":false},"author":4,"featured_media":365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[17,29,26,24,27,28,25,19,18,23],"class_list":["post-361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arkansas-general-assembly","tag-asa-hutchinson","tag-charlie-collins","tag-eitc","tag-jeremy-gillam","tag-jim-dotson","tag-joe-jett","tag-jonathan-dismang","tag-matthew-pitsch","tag-taxes","tag-warwick-sabin"],"yoast_head":"\nRival tax relief plans clear House committee - Arkansas Nonprofit News Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arknews.org\/index.php\/2017\/01\/19\/rival-tax-relief-plans-clear-house-committee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rival tax relief plans clear House committee - Arkansas Nonprofit News Network\" \/>\n<meta property=\"og:description\" content=\"Both Governor Hutchinson\u2019s tax cut for low-income earners and an alternative low-income tax relief bill calling for an Earned Income Tax Credit advanced on a voice vote in the House Revenue and Tax committee Thursday at the state Capitol. 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