NFIB State Director Sylvester Smith released the following statement today on House Bill 1002, legislation that would reduce state income tax rates on small business owners and other Arkansans:
“This is exactly the kind of commonsense tax reform that Arkansas needs right now.
“If passed and signed into law, it would reduce the corporate tax rate from 5.9% to 5.3% and lower the individual tax rate from 5.5% to 4.9%. That’s important because most small businesses are organized as pass-through entities, meaning owners pay taxes at the individual rather than the corporate rate. Cutting taxes on Main Street businesses would help owners get through the current economic slump and enable them to reinvest in their businesses. HB1002 would also raise the cap on income tax deductions on existing property from an unreasonably small $25,000 to a more realistic $1 million.
“All told, HB1002 would save Arkansas taxpayers half a billion dollars in fiscal 2023 alone That’s why NFIB’s small business members are urging their legislators to vote ‘yes’ on this important legislation.”