Citizens for Tax Justice, a liberal think tank, says that Arkansas and West Virginia are getting it right when it comes to tax cuts. (Although maybe they could be a little righter still.) CTJ notes that governors in some states propose to cut taxes on businesses and the wealthy as a way to accelerate economic recovery, but:

“The Governors of West Virginia and Arkansas have arrived at an entirely different tax-cutting proposal: reducing the sales tax on groceries. Like lawmakers who support business tax cuts, Governors Tomblin and Beebe believe their brand of tax cuts will circulate quickly throughout the economy, providing necessary relief to the taxpaying public while stimulating the economy.

“Governor Mike Beebe of Arkansas wants to cut the sales tax on groceries by a half-cent and has said it is the only tax cut he will consider this year. In West Virginia, Governor Earl Ray Tomblin wants to reduce the grocery sales tax from 3 to 2 cents and would ultimately like to see it eliminated entirely.

“While the proposals to cut the sales tax on groceries are a welcome development compared to proposed tax cuts for businesses and the wealthy, there are still two problems with them.

First, states need money, so any tax cut needs to be made up. Second, there might be better ways to target working families. Read on for more.

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