Find out more →

Get unlimited access. Become a digital member!

Tuesday, October 22, 2013

Arkansas legislature fails to address tax fairness; poor soaked again

Posted By on Tue, Oct 22, 2013 at 9:28 AM

click to enlarge aacfreport.png
The Arkansas Advocates for Children and Families has issued a report underscoring the usual — tax policy in Arkansas favors the rich and does little for the poor.

Here's the report: "A Better Foundation: Building a Tax System that Works for Ordinary Families."

There is no well-financed lobby for ordinary Arkansans.

Said the Advocates' director, Rich Huddleston:

... tax changes passed during the 2013 session con­sisted largely of personal income tax cuts benefiting upper-income taxpayers and sales and use tax cuts targeted to specific industry groups. ... [the changes] did little to improve overall tax fairness for low- and middle-income families; resulted in flat or underfunding for certain critical services for children and families in the short term; and further undermined an already strained base for funding future services that are critical to the state’s needs.\

In four words:

The rich get richer.

Yes, there was a modest potential cut in the tax on groceries if the creek don't rise. But the bottom 40 percent will  see little or nothing from income tax and capital gains tax cuts. (That capital gains tax will be an enormous windfall for a handful of the unimaginably wealthy.) Result, said Huddleston:

Already, the bottom 40 percent of taxpayers have a state and local tax burden (twelve percent of their income) that is twice that of the richest one percent (who pay only six percent of their incomes in state and local taxes).

You'd think Huddleston didn't know that was the idea. Trickle-down, see?

Tags: , , , ,


Speaking of...

  • The right way to fund Arkansas highways

    November 20, 2015
    Arkansas Advocates for Children and Families has come forward with some progressive notions on how to pay for needed highway construction in Arkansas. It's based on a higher fuel tax. /more/
  • Tax cuts: They still don't help

    October 29, 2015
    Brookings Institution economists have taken a fresh look at the effect that tax cuts for high earners have on economic growth and jobs, 35 years after Jude Wanniski and Arthur Laffer persuaded Ronald Reagan and Jack Kemp that it would be nothing short of spectacular. /more/
  • Help for working Arkansans

    September 6, 2015
    Arkansas Advocates for Children and Families sends a Labor Day weekend plug for its report on the state of working Arkansans. /more/
  • Groups call on Hutchinson to reinstate those who lost health coverage

    September 2, 2015
    The Arkansas Citizens First Congress has a media event today to call on Gov. Asa Hutchinson to reinstate health insurance coverage for the 50,000 people terminated for failing to respond in the illegally short 10-day window the state had provided for people to respond to a poorly crafted notice of income verification. /more/
  • Arkansas Advocates issues statement on threats to Medicaid program

    August 18, 2015
    The private option, the state's unique version of Medicaid expansion, has gotten some positive headlines lately — the uninsured rate in Arkansas has been cut in more than half since the policy was enacted, the biggest drop in the nation during that time; the state's new consultant found that the program will save more than $400 million for the state's budget between 2017 and 2021. But the Medicaid program has been under threat from bumbling state policies and political grandstanding. Arkansas Advocates for Children and Families issued a statement on the Medicaid program today. /more/
  • Report: State income tax cuts a bad idea

    July 29, 2015
    This report will go straight to the trash should any of the ruling Republicans see it, but for the record from the Brookings Institute — state income tax cuts are of little value in spurring economic growth. Where they've been tried and failed, the unavoidable need to raise revenue has produced — not a return to a progressive income tax — but regressive taxes that hit poor people hardest. /more/
  • A call for higher taxes

    June 6, 2015
    The New York Times says some Democratic candidates are talking about the need for higher taxes, particularly on the wealthy, and with good reason. /more/
  • April revenue report shows state's take this tax season well above forecast

    May 4, 2015
    Arkansas's revenue report for April outperformed expectations and showed a major boost over last year's tax season. At $624 million, the state's take for April is 15 percent higher than was forecast. That's about $54 million more than revenue from April 2014, or a 9.4 percent increase. /more/
  • The tax cut myth: Aiding the wealthy doesn't create jobs

    April 24, 2015
    A new research paper says tax cuts can create jobs, as long as the tax cuts target lower income people. Arkansas has turned that idea on its head. /more/
  • Line up at the trough: budget includes $40 million in GIF pork

    March 30, 2015
    Remember when Gov. Asa Hutchinson promised an end to legislative pork barrel spending, the time-honored tradition of splitting up surplus money for legislators' pet projects in their districts via the General Improvement Fund act? Never mind! /more/
  • More »

Comments (10)

Showing 1-10 of 10

Add a comment

Subscribe to this thread:
Showing 1-10 of 10

Add a comment

More by Max Brantley

Most Shared

Most Viewed

Most Recent Comments



© 2015 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation