NFIB State Director Sylvester Smith released the following statement today applauding Gov. Asa Hutchinson’s decision to sign House Bill 1002, legislation that would reduce state income tax rates on small business owners and other Arkansans:
“On behalf of our small business members, I want to thank the legislature for passing House Bill 1002 and Governor Hutchinson for signing it into law so quickly.
“HB 1002 is commonsense legislation that’s going to make a difference to Arkansas’s small businesses. Lowering the corporate income tax from 5.9% to 5.3% will help stimulate growth, but what’s really going to help Main Street businesses is reducing the individual tax rate from 5.5% to 4.9%. Most small businesses in the state are organized as pass-through entities, meaning their owners pay taxes at the individual rather than the corporate rate.
“Cutting taxes is going to help everyone who’s dealing with high prices. It’s going to relieve some of the financial pressure on Arkansas families and give small businesses more of a cushion to help them get through this economic upheaval.”