Arkansas
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.
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
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.
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.
GET THE MORNING HEADLINES.
After a cool/chilly morning that started in the 40s and 50s, Tuesday will warm to the upper 70s and low 80s with nothing but sunshine all day long.
There will be a weak front passing through Arkansas on Wednesday. There will briefly be a few clouds along the time the front actually passes through. But once the front clears, it will once again become sunny.
Starting Friday and lasting through the weekend and into next week a strong south wind will set up. That will warm Arkansas into the mid and upper 80s and introduce a higher level of humidity. It will feel a little like Summer this weekend. Rain chances will return to Central Arkansas starting on Sunday.
With a big upper-level system and cold front approaching early next week, the rain and thunderstorm chance will go up Monday, Monday night and Tuesday. Some strong to severe storms may occur Monday evening. The front will become stationary on Tuesday which will prolong the rainy period and overall help the drought situation Arkansas is facing.
NORTH LITTLE ROCK, Ark. (KATV) — Purple is the color of the month in Arkansas, and Lupus Awareness Month is bringing a busy stretch of events, including a mayoral proclamation and a smooth jazz concert featuring acclaimed saxophonist Merlon Devine.
A proclamation for Lupus Awareness Month is set for 6 p.m. in North Little Rock, with Mayor Hardwick expected to present it. Organizers encouraged lupus warriors and supporters to come out.
Anita Boone, President of the Lupus Foundation of Arkansas Inc. and a former lupus warrior, described the day-to-day reality of living with the disease: “One minute you’re feeling amazing, the next minute your body is saying we can’t do this.”
Lupus is an autoimmune disease, described during the interview as a condition where the immune system attacks the body “inside out.” It can affect organs throughout the body, including the brain, lungs, heart and kidneys. Boone also shared personal impacts, saying, “I am losing, actually, ear from hearing, just because of lupus.”
The Lupus Foundation of Arkansas is also inviting the community to a Lupus Smooth Jazz Concert this Sunday, May 17, at 3:30 at The Space with Grace event venue, 2005 Main St., North Little Rock.
Gale Davis, committee chair for the Lupus Smooth Jazz Concert shared details about the concert.
Davis said guests are encouraged to “dress to impress,” though formalwear isn’t required. The event will include a photo backdrop, light hors d’oeuvres and beverages, and sponsored tables aimed at networking. It’s also a chance for people to meet other lupus warriors, learn more about the foundation’s work, and watch a video presentation highlighting events from the past year.
The featured artist, Merlon Devine, was described as an acclaimed saxophonist known for a soulful, smooth jazz sound, with a career spanning more than two decades and performances across the country and around the world. He’s also an Arkansas native who attended Little Rock Central High School. He now lives in Southern Maryland, outside Washington, D.C.
Davis said Devine’s connection to lupus is personal. She said his father had lupus and has since died, though he didn’t die from lupus. They also said Divine had a sister who died from lupus in 1981 and that he currently has two sisters living with lupus.
She also shared that, according to his doctors, Devine was born with acute asthma and underdeveloped lungs. His latest single, released last year, is called “Mercy.”
Tickets must be purchased online and will not be sold at the door. They’re available online by clicking on the flyer. Prices are $40 for individual tickets, or $400 for a table of nine, with an option to sponsor a table.
Organizers also noted another proclamation is planned for the Little Rock side with Mayor Frank Scott tomorrow, and encouraged people to follow the Lupus Foundation of Arkansas on social media for updates.
The concert will take place this Sunday at the Space With Grace Venue in North Little Rock.
ASHLAND TOWNSHIP, Mich. — An Arkansas man died after crashing a dirt bike on Sunday.
The 21-year-old Arkansas man, formerly from Newaygo, crashed into a tree while riding a dirt bike on private property in Ashland Township near Grant on Sunday before 2:30 p.m., according to Michigan State Police (MSP) troopers.
Emergency responders tried to save his life but he died at the scene.
Troopers are still investigating but do not suspect drugs or alcohol as factors in the crash.
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MSP did not initially release any additional information.
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