Revenue impact of tax cuts

The individual and corporate income tax cuts proposed by Gov. Asa Hutchinson would reduce general revenue, which goes toward the state budget. The budget is about $6 billion a year. Both top rates are now 5.9%.

NOTES: *Fiscal years start July 1 and end June 30 of the year they are named after. The tax cuts would only be in effect the last six months of FY2022.
**The bill provides that the planned income tax reductions for tax years 2024 and 2025 shall not take effect if a transfer from the Catastrophic Reserve Fund (formerly the Long Term Reserve Fund) occurs for any reason between July 1, 2022 and Jan. 1, 2024.
***The top corporate rate is now 6.2% and will drop to 5.9% on Jan. 1, 2022, under a law passed in 2019.