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Senate Approves Tax Cuts, Session Ends Early Next Week

The Arkansas Senate approved a package of tax cuts totaling approximately $120 million on Thursday as the legislative session nears conclusion.
LITTLE ROCK, AR - The Arkansas Senate approved a package of tax cuts totaling approximately $120 million on Thursday as the legislative session nears conclusion.

The Senate cleared reductions to the state income tax, capital gains, and groceries among others.

The tax cuts passage comes one day after the Senate approved funding for health care expansion for uninsured Arkansans.

The Department of Finance and Administration estimates the expansion will produce $90 - $100 million in health care related savings cost annually.

The tax cuts are set to take effect over a three year period, approximately $10 million in FY2014, $80 million in FY2015 and $120 million in FY2016.

Senate tax committee chair Jake Files, R-Fort Smith, says the committee expects federal officials in Washington D.C. to agree to the health care legislation passed this week.

"I think this gives us a little more flexibility, this is probably a little higher than they would have liked but I think it also puts the onus back on legislators collectively to find the money if the money's don't come in to pay for the tax cuts," Files says.

Legislators now have to vote on a final form of the budget, known as the RSA (Revenue Stabilization Act).

The House plans to use Monday and Tuesday to wrap up its work for the session.
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