Arkansas legislators discuss tax cuts | Arkansas Blog

Thursday, January 12, 2012

Arkansas legislators discuss tax cuts

Posted By on Thu, Jan 12, 2012 at 1:44 PM

Arkansas legislators discussed tax "reform" at a committee meeting today. Up again was an idea to give income tax preferences to poor counties. Though described as a boon to poor people and an economic incentive, it wouldn't likely be anything but a drain on the treasury. The poorest working people already are exempt from most income taxes. Giving corporations in poor counties a zero tax rate would mean a windfall to already wealthy corporate residents, particularly farmers, who don't making farming decisions (not labor-intensive anyway) based on tax rates. Will a corporation locate in an impoverished county on account of the tax rate? Again, as ever: Not unless transportation, raw materials, work force, education and amenities of life justify it. And corporate location is mostly meaningless to multistate corporations that have all kinds of corporate income tax shelters already.

It would be fun to watch millionaires establish bogus residencies in Eudora and the like — as many have done in Texas and Florida over the years — to capture income tax breaks.

Davy Carter, who's been pushing a broader-based view of tax changes (the graduated income tax is badly out of date, for example), said sensibly:

Carter, though supportive of Rapert’s tax presentation, expressed some skepticism about the piecemeal approach of the plan.

“When you have more exceptions than the general rule, you need to change the rule,” he said. “That’s when you need to address the policy.”

UPDATE: Gov. Mike Beebe praises Republican Carter's call for a comprehensive review of taxes, including every exemption.

Tags: , ,

From the ArkTimes store

Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

More by Max Brantley

  • Give us your tired, your poor .... and Trump will harm them

    The Trump administration has revoked legal status for 50,000 Haitian immigrants. This means 27,000 U.S. citizen children now have parents facing the dilemma of returning to Haiti or living in U.S. shadows as undocumented residents.
    • Nov 21, 2017
  • New report on ill consequences of charter schools

    A new report by the Network for Public Education challenges the talking points for the charter school movement and details ways they can be damaging to children and real public schools.
    • Nov 21, 2017
  • Little Rock Airport reports landing mishap

    The Clinton National Airport reports that brakes failed on a private aircraft landing shortly before midnight last night, but no one was hurt.
    • Nov 21, 2017
  • More »

Readers also liked…

  • Judge anticipates punishment of lawyers in Fort Smith class action case

    Federal Judge P.K. Holmes of Fort Smith issued a 32-page ruling yesterday indicating he contemplates punishment of 16 lawyers who moved a class action lawsuit against an insurance company out of his court to a state court in Polk County after a settlement had been worked out.
    • Apr 15, 2016
  • UPDATE: Hutchinson moves to cover himself on cut to War Memorial Stadium

    Gov. Asa Hutchinson apparently felt the burn from KARK's exclusive Tuesday night on his plans to cut state support of War Memorial Stadium in half beginning July 1, 2018. He has a so-far secret plan to make the stadium self-sustaining. We bet that doesn't include state support.
    • Oct 20, 2016
  • IHOP coming down, but .....

    I always scan the Little Rock City Board for items of interest this week and this one caught my eye: A zoning measure required by a proposal to tear down the IHOP at Markham and University.
    • Apr 30, 2016

Most Shared

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation