LITTLE ROCK, AR — Arkansas Gov. Asa Hutchinson has signed into law legislation carrying through on his campaign promise to cut income taxes for the middle class by $102 million a year.
Hutchinson on Friday signed a bill given final approval by the Senate a day earlier that would cut income taxes by 1 percent for those making between $21,000 and $75,000 a year.
The tax cut takes effect in 2016.
The legislation also repeals part of a capital gains tax break lawmakers approved two years ago.
Legislative leaders have left open the possibility of restoring the tax break if state revenues continue coming in higher than expected.
Hutchinson, a Republican who took office last month, called the cut a first step toward reducing income taxes across the board in the state.
