LITTLE ROCK, Ark. (AP) — Arkansas is poised to become one of the first states in the nation to enact a significant tax cut this year. It shows the sentiment for scaling back government even in places where state spending is limited and no fiscal crisis exists.
State representatives are expected Monday to approve cutting the grocery tax, the centerpiece of a $35 million tax cut package agreed to by Democratic Gov. Mike Beebe and lawmakers. The package includes five other taxes likely to be approved later this week.
Despite the cuts, the state is expected to maintain a balanced budget and increase public school spending. Beebe agreed to more than the grocery tax cut he's advocated, but says he's worried that the spending restraints could go too far.
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