In January, the Arkansas Tax Reform Task Force severed ties with its outside consultant — PFM Group — Matt Boch spoke with Bloomberg Tax recently about the implications the termination of PFM could have on economic incentives.
‘‘We have not seen a roadmap yet of how this is going to play out,” Boch said when referring to how the task force plans to pay for Goveroner Asa Hutchinson’s tax cut.
Later this month the task force will hold a public hearing to discuss sales and use tax, Boch said, “‘Until you see that agenda for the meeting, and maybe even until you’re at the meeting, you might not know what you think is a critical tax provision has been considered to be a revenue-raising loophole elimination by a tax reform task force member.”
Hutchinson’s proposed cut to the state’s top marginal tax rate from 6.9 percent to 6 percent is in hopes of creating more jobs and investment in Arkansas, in addition to making the state more competitive with the surrounding states.
Boch said the cuts would cost an estimated $180 million in annual revenue. He said he’s worried that, with the absence of PFM Group, that economic incentives could be “a greater target.”