Arkansas Tax Task Force Considers Cutting 2 Tax Credits
The Tax Reform and Relief Legislative Task Force debated cutting two tax credits on Thursday. Insurance companies benefit from the two tax credits, which costs the state $77 million every year.
Debate centered around the benefits of the tax credit. By cutting tax credits, Arkansas could afford to push for a larger income tax cut.
One tax credit allows those who work in insurance to take a home office credit against their insurance premium tax. The other tax credit gives certain insurers a cut against insurance premium taxes if investments have been made in low-income areas.
This spring, the Tax Task Force faced political opposition for proposing a higher grocery sales tax to finance income tax cuts.