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Proposed Arkansas legislation would increase taxpayers' standard deduction • Arkansas Advocate

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Proposed Arkansas legislation would increase taxpayers' standard deduction • Arkansas Advocate


Rep. David Ray, R-Maumelle, filed two tax-related bills Thursday that would increase individual taxpayers’ standard deduction and remove a cap on its annual adjustment. 

House Bill 1066 would increase Arkansas’ standard deduction to $4,400 per taxpayer in 2026. The state’s current standard deduction is $2,340, well below the federal standard deduction of $14,600 for individuals or married taxpayers filing separately. 

HB 1065, also known as the Inflation Reduction Act of 2025, would eliminate the 3% cap on adjusting the standard deduction in future years. The annual adjustment is tied to the Consumer Price Index (CPI), which the U.S. Bureau of Labor Statistics defines as the “average change over time in prices paid by urban consumers for a market basket of goods and services.”

Instead of using the CPI for All Urban Consumers to calculate the annual adjustment, the bill calls for referring to the CPI for West South Central division of the South Region published by the U.S. Department of Labor, which includes Arkansas, Louisiana, Oklahoma and Texas.

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Increasing the standard deduction is “a solid move to make” in light of recent inflation and “a really broad-based way to deliver income tax relief to hardworking Arkansas families,” Ray said in an interview Friday.

The federal Tax Cuts and Jobs Act of 2017, passed during President Donald Trump’s first term, included a doubling of the standard deduction, which Ray said was “extremely popular.”

Ray said “one of the biggest lessons” from November’s presidential election, in which Trump won a second term, was that Americans want their elected leaders to reduce the impact of inflation.

“As one state representative out of 100, there’s very little I can do about the wasteful spending we see in Washington D.C. that drives a lot of the inflation, but the one thing I can do is file a bill that makes us adjust our tax brackets to truly account for inflation,” Ray said. 

Arkansas governor signs tax, appropriation bills after special legislative session ends

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He also said the legislation will have “literally zero cost” if inflation rates are manageable in 2025, and it “would provide some really robust protections for taxpayers for the next time we get a nasty bout of inflation.”

Tax cuts have been a focus for Gov. Sarah Huckabee Sanders, who signed legislation to lower taxes for Arkansans three times over 15 months.

The Legislature approved more than $100 million in tax cuts in April 2023, reducing the top individual tax rate from 4.9% to 4.7% and the top corporate tax rate from 5.3% to 5.1%. During a special session in September 2023, legislators lowered the top individual and top corporate income tax rates to 4.4% and 4.8%, respectively.

The most recent cuts came during June’s special session during which lawmakers approved a bill to lower the top corporate income tax rate from 4.8% to 4.3% and the top individual income tax rate from 4.4% to 3.9%, retroactive to Jan. 1, 2024.

Ray co-sponsored all of those tax-cut bills. In addition to filing HB 1065 and 1066 for the 2025 legislative session that begins on Jan. 13, Ray has also filed HCR1002, a resolution urging the Congress to permanently extend the Tax Cuts and Jobs Act of 2017. 

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The law made several changes to the individual income tax, including an expanded tax deduction and child tax credit. The individual income tax changes are set to expire at the end of 2025. If made permanent, the income tax provisions would reduce federal revenue by $115 billion to $165 billion annually, according to the Tax Foundation

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Arkansas

Arkansas River tonnage up almost 2% in 2024 – Talk Business & Politics

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Arkansas River tonnage up almost 2% in 2024 – Talk Business & Politics


Tonnage shipped on the Arkansas River in 2024 totaled 12.446 million tons, up 1.95% compared with 2023 tonnage. The increase was driven by a 13% increase in sand, gravel, rock shipments, and 8% and 41% gains, respectively, in wheat and soybean shipments.

December tonnage was 1.01 million tons, below the 1.032 million tons in December 2023, according to a report from the U.S. Army Corps of Engineers.

However, river activity surged in the fourth quarter with shipments in the final three months carrying 3.387 million tons, up 15.8% compared with the same period in 2023.

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Inbound shipments – those coming from off the river system – totaled 3.793 million tons during 2024, down 16% compared with 2023. Outbound shipments totaled 4.769 million tons, up 134% compared with 2023. Internal shipments – those sent between port operations on the river – totaled 3.884 million tons, up 10%.

Following are the top five shipment categories by tonnage in 2024, with the percentage change from 2023.
• Sand, gravel, rock: 4.591 million tons (up 13%)
• Chemical fertilizer: 2.438 million tons (down 9%)
• Minerals and building products: 1.06 million tons (down 0.12%)
• Iron and Steel: 987,223 tons (down 20%)
• Wheat: 889,443 tons (up 8%)

“Tonnage for Five Rivers Distribution saw an 8% increase in 2024. Tonnage remains strong with favorable river conditions and our rail volumes have also increased,” said Marty Shell, owner of Van Buren-based Five Rivers Distribution, which manages port operations in Van Buren and the Port of Fort Smith. “Inbound and outbound trucks into the facilities are also heavy with the winter months of supplying the animal agriculture business. We foresee a strong 2025, but the uncertainty of tariffs still loom for the upcoming years and we will have to pivot to those changes.”

Bryan Day, executive director of the Port of Little Rock, said the port posted a 27% decrease in barge tonnage in 2024 compared with 2023. Tonnage from rail at the port was up 26%. He said the state’s largest port also saw a fourth quarter surge, working 87 barges compared with 58 in the same period of 2023. Day estimates barge and rail tonnage at the port will increase in 2025, and he also believes river traffic will continue to increase.

“Our estimation for 2025 is that river tonnage will increase based on preliminary conversations with some of our industries,” Day noted.

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TONNAGE HISTORY, RIVER INFO
Tonnage shipped on the river in 2023 totaled 12.208 million, up 10.9% compared with 11.011 million tons in 2022. Shipments of sand, gravel, rock and chemical fertilizers helped drive the 2023 gains.

Inbound shipments – those coming from off the river system – totaled 4.491 million tons during 2023, up 30% compared with 2022. Outbound shipments totaled 4.175 million tons, up 6% compared with 2022. Internal shipments – those sent between port operations on the river – totaled 3.542 million tons, down 1% compared with 2022.

The Arkansas River system – McClellan-Kerr Arkansas River Navigation System (MKARNS) – is 445 miles long and stretches from the confluence of the Mississippi River to the Port of Catoosa near Tulsa, Okla. The controlled waterway has 18 locks and dams, with 13 in Arkansas and five in Oklahoma. The river also has five commercial ports: Pine Bluff, Little Rock, Fort Smith, Muskogee, Okla., and the Tulsa Port of Catoosa in Oklahoma.

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WH art teacher recognized by state | Arkansas Democrat Gazette

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WH art teacher recognized by state | Arkansas Democrat Gazette


Susie Maynard was named Arkansas Elementary Art Teacher of the Year for 2023-24, but the White Hall School District instructor is quick to give credit to her coworkers.

“The only thing that sets me apart is that I have the best team,” Maynard said Tuesday. “That’s what makes me so good is the team. We have the best art team.”

The team puts together a district-wide art show every year at the White Hall Community Center featuring drawings, paintings, sculptures and more.

“We try to include every avenue of art,” Maynard said.

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Maynard was acknowledged for her award at a WHSD board meeting. Arkansas Art Educators presented the honor to Maynard during the fall semester.

Maynard teaches kindergarten through fifth grades at Moody and Hardin elementaries. She has taught in the WHSD for at least 15 years and also spent a year in the Little Rock School District.

She values giving students a chance to problem-solve and think for themselves.

“I don’t feel like they have enough of that, and art is such a great avenue for them to make their own decisions, to make their mistakes and figure out, how do I solve this mistake?” she said. “How do I turn it into something really cool?”

Before approaching those questions, students do learn the basics from Maynard.

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“We teach how to use the paintbrush, how to hold your pencil, how to draw different shapes and how to put it together, and then the student picks it up and carries it from there,” she said.

Other teachers nominated Maynard for the award and the AAE board decided on the winner, she said. Despite such a prestigious honor, she remains humble.

“I don’t think I stand out,” Maynard started, “but I …”

“Yes, she does,” Debbie Jones interjected. Jones is the assistant superintendent for curriculum. “There is creativity that she brings to the table, and it’s also opportunity for students to explore within their art.”

Maynard remarked: “She explains that best.”

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Fed report: Arkansas’ economic expansion continued in December | Northwest Arkansas Democrat-Gazette

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Fed report: Arkansas’ economic expansion continued in December | Northwest Arkansas Democrat-Gazette


Arkansas’ economic expansion continued in the last months of 2024 and positions the state to continue building momentum as the year opens, according to a regional economic analysis released Wednesday.

Nevertheless, rising prices could hinder growth and business executives are worried about persisting inflation and the potential economic hurdles that tariff increases could create. Christmas holiday sales were uplifting, coming in better than expected and brightening the outlook for 2025.

Sales were helped by a late Thanksgiving that fueled a spending spree and delivered a kickstart to the year, the Federal Reserve Bank reported Wednesday in its Beige Book economic analysis. The report covers 12 regional districts, including Arkansas and surrounding states in the St. Louis district.

“Retailers in our district indicated that December sales were stronger than in previous years,” Charles Gascon, the Fed economist for the Arkansas region, said Wednesday.

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