Dover Dixon Horne member Matt Boch was recently interviewed by Arkansas Business and Law360 to discuss Arkansas Governor Asa Hutchinson’s proposed budget, which includes a temporary income tax break for new Arkansas residents.
However, Boch was focused on the top-earner tax cuts that Hutchison has proposed, which would make the top income tax rate 4.9%.
He told Arkansas Business that the five-year plan to hit the 4.9% target would “high earners to locate and remain in the state.
“There is something psychologically important about that 5% threshold where getting below it will help us no longer seem like a high-tax state for individuals,” he said. “The Tax Foundation ranked us 46th, near states like New York and California. Tax policy commentator David Brunori observed that Arkansas is among a few Southern states ‘plagued by antiquated, complicated systems.’”