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

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

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…

  • Auditor Lea caught not telling the truth

    State Auditor Andrea Lea, who began her tenure in statewide office with a degree of competence unseen in some other Republican counterparts (think Treasurer Dennis Milligan particularly), is becoming more deeply mired in a political scandal.
    • Mar 4, 2016
  • Sarah Huckabee Sanders becomes White House press secretary

    Sarah Huckabee Sanders, daughter of former Arkansas Gov. Mike Huckabee, is the new White House press secretary.
    • Jul 21, 2017
  • Another Republican miracle-working governor

    Great piece in Washington Post on the budget crisis in Louisiana. Big tax cuts and corporate welfare will do that to a state, particularly to a state whose previous governor, Republican Bobby Jindal, refused to join the Obamacare-funded Medicaid expansion. There's a lesson there for Arkansas.
    • Mar 4, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

  • McCain says no on Graham-Cassidy

    BREAKING FROM THE AP: Republican Sen. John McCain announces opposition to health care bill, dashing hopes for GOP leaders.
  • A Highway 10 traffic solution recommendation

    The Arkansas Department of Transportation has announced its preferences for interchange and other improvements along the Highway 10 corridor between Pleasant Valley Drive and Pleasant Ridge Road.
  • Martha Shoffner, nearing completion of term, back in Arkansas

    Martha Shoffner, who reported to federal prison Nov. 3, 2015 for a 30-month sentence for taking bribes in return for state bond business when she was state treasurer, is nearing the end of her sentence and n
  • 60th opens with panel of Little Rock Nine

    Eight members of the Little Rock Nine, lacking the late Jefferson Thomas, gathered for a panel discussion at the Clinton School for Public Service this morning to open a weekend of activities marking the 60th anniversary of their desegregation of Central High School.
  • Police release details on officer shooting Wednesday night

    The Little Rock police this morning finally provided more details on officers' shooting of a criminal suspect Wednesday night in Southwest Little Rock.

Most Recent Comments

Blogroll

 

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