Sunday, January 25, 2015

Hutchinson's tax cut: Still seeking answer on omission of working poor

Posted By on Sun, Jan 25, 2015 at 7:44 AM

taxes.jpg

After Arkansas Advocates for Children and Families issued a statement Friday praising parts of Gov. Asa Hutchinson's tax proposal, I asked the governor's office about their criticism of the failure to include the working poor in tax cuts.

Hutchinson proposes income tax reductions for people making $21,000 ti $75,000. He would postpone for a year an income tax reduction — from 7 percent to 6.9 percent on the top marginal rate — passed in 2013 for those earning above that amount. And he proposes to repeal a major capital gains tax cut. The net impact will be some $80 million in tax cuts. The Arkansas income tax structure needed moderating and reducing the impact on revenue by raising taxes on higher income people (by delaying or repealing tax cuts is a progressive way to do it.

Still, I thought the Advocates raised a fair question. Why were those with incomes below $21,000 left out of tax cut benefits? They pay a higher percentage of their income in taxes than anyone. Even a small cut has a big impact on a family scraping by.

Saturday night, I got a response to the question from Hutchinson's spokesman, J.R. Davis:

Governor Hutchinson campaigned for two years stating his focus was on a "middle class" tax cut. This tax reduction package will not only deliver relief to middle class families, but it reforms our tax rate to help make Arkansas more competitive from an economic standpoint, which will benefit every Arkansan. It's a good start.

I have asked him again for a specific reason for omitting the poorest workers from a tax cut.

Roughly 40 percent of the 1.2 million income tax filers in Arkansas make less than $21,000 a year and would get no benefit from the Hutchinson tax plan, except the presumed general societal benefits

BUT NOTE: Hutchinson is off to a very good start. I believe that. But no better indication is the howling coming from Debbie Pelley of Jonesboro, the commander-in-chief of the state's politically retrograde Black Helicopter Squadron. She's blasting her e-mail list with reports on how "Asa betrays voters and legislators." This for keeping the private option in place for two years while studying larger health system reforms. You go, Asa.


Tags: , , ,

From the ArkTimes store

Favorite

Speaking of...

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

Readers also liked…

Most Shared

  • Former state board of education chair Sam Ledbetter weighs in on Little Rock millage vote

    Ledbetter, the former state Board of Education chair who cast the decisive vote in 2015 to take over the LRSD, writes that Education Commissioner Johnny Key "has shown time and again that he is out of touch with our community and the needs of the district." However, Ledbetter supports the May 9 vote as a positive for the district's students and staff.

Visit Arkansas

Haralson, Smith named to Arkansas Tourism Hall of Fame

Haralson, Smith named to Arkansas Tourism Hall of Fame

Chuck Haralson and Ken Smith were inducted into the Arkansas Tourism Hall of Fame during the 43rd annual Governor’s Conference on Tourism

Most Viewed

  • The Kenneth Williams' execution thread

    Kenneth Williams, 38, is scheduled to be executed at 7 p.m. tonight at the Cummins Unit near Grady. If a court does not stop the execution, he will be the fourth death row prisoner to die over the last eight days in Arkansas.
  • Last words from Kenneth Williams: 'Finger Lickin' Good Fried Chicken'

    What's purported to be a final-words essay from condemned prisoner Kenneth Williams was distributed today by Deborah Robinson, a freelance journalist in Arkansas.  He reflects on his execution, his victims, reactions of inmates and big servings of fried chicken, which he says are given to all inmates on execution days.
  • Commission to hear about plans for Ten Commandments monument

    The state will move one step closer to a lawsuit on May 11, when the Capitol Arts and Grounds Commission will hear the American History and Heritage Foundation's plans for a Ten Commandments monument on the grounds of the state Capitol.
  • Death watch includes a family reunion, arranged by a victim's family

    The execution of Kenneth Williams for his 1999 slaying of Cecil Boren during a prison escape remains scheduled for 7 p.m. tonight, though actions in state and federal courts are anticipated in the final hours.
  • Griffen asks probe of Ark. Supreme Court and AG's office conduct

    At a press conference today at the Doubletree Hotel just across from the Pulaski County Courthouse, Pulaski County Fifth Circuit Judge Wendell Griffen and his attorneys announced that he has asked the Arkansas Judicial Discipline and Disability Commission to investigate the conduct of the entire Arkansas Supreme Court, and asked the director of the Arkansas Committee on Professional Conduct to investigate the conduct of Attorney General Leslie Rutledge and several others in the AG's office, related to what Griffen and his attorneys claim were forbidden ex parte conversations between the Supreme Court and the AG's office.

Most Recent Comments

Blogroll

Slideshows

 

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