A pitch for more consideration for lower-income taxpayers | Arkansas Blog

Monday, February 11, 2019

A pitch for more consideration for lower-income taxpayers

Posted By on Mon, Feb 11, 2019 at 4:07 PM

click to enlarge COMPARING TAX PLANS: How past and proposed tax changes would affect taxpayers of different incomes. - CITIZENS FIRST CONGRESS
  • Citizens First Congress
  • COMPARING TAX PLANS: How past and proposed tax changes would affect taxpayers of different incomes.

Arkansas Citizens First Congress, a grassroots group, adds its voice to those questioning Gov. Asa Hutchinson's insistence on giving a big tax break to the wealthy. It compiled the chart showing impact of past and future tax plans.

From its statement:

Our first concern is that the benefits of this tax cut go almost exclusively to the people who need it the least in Arkansas. It will make our system even more unfair to working families.

Our other concern is that we believe you should wait to take action on any tax measures until you have budget proposals and a comprehensive view of other tax-cutting proposals before you.

Arkansas’ tax system is deeply broken. We tax our poorest individuals at nearly twice the overall tax rate that we tax our wealthiest. We believe this is morally wrong as well as bad public policy for the future growth and prosperity of Arkansas.

The unfairness in our tax system is largely due to our heavy reliance on the sales tax, which is the third highest in the nation. The Governor’s tax plan of two years ago brought minimal relief to this system but his new proposal almost exclusively benefits the wealthiest Arkansans who already pay the lowest taxes by percentage of income in the state, making our system even worse.

We think any tax cut the legislature considers should be targeted at improving the overall
fairness of our system and bringing relief to low- and middle-income working Arkansas families.
Citizens First adds its endorsement to the Democratic Party's call for an earned income tax credit and pay for it be reducing the cut planned for the richest Arkansans.

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