Hutchinson Calls Special Session to Lower State Income Tax & Repeal Insulin Discount Bill

Governor Hutchinson has called a special session to vote on several bills today at 10am. According to Hutchinson the primary reason for this special session is a “tax-reduction bill” which is claimed to have enough support throughout the house to be passed. The bill proposed aims to lower the top tax rate for those making above $82,000 per year from 5.9% to 4.9% over the course of the next 4 years. This bill also will combine the lower and middle tax brackets and provide for a $60 non-refundable tax credit from those individuals with an income of less than $24,700.

In other business the Governor said Act1104 would be revisited with the intent to repeal this bill. HB1709 which later became Act1104 provides that a discount on insulin products may only be made available if the discount provided goes directly to the end user.

According to Hutchinson, since passage, it has been determined that this bill has unintended consequences. This bill was set to be in effect January 1st of 2022.