The rich get richer in Senate tax bill | Arkansas Blog

Monday, March 25, 2019

The rich get richer in Senate tax bill

Posted By on Mon, Mar 25, 2019 at 3:31 PM

click to enlarge SEN. BART HESTER: Passes sales tax increase and corporate tax cut.
  • SEN. BART HESTER: Passes sales tax increase and corporate tax cut.
With virtually no debate, the Senate voted 27-3 today for the bill to collect sales taxes on Internet sales and cut the corporate income tax in several ways.

The only questions were about a provision to levy a sales tax on all car washes. Currently, car washes that are wholly automated don't pay a sales tax. An amendment was promised by sponsor Sen. Bart Hester in the House to levelize the tax on all car washes.

An updated fiscal impact statement was filed today.

Sales tax: $42 million in state and local sales tax increases in the first 11 months it's in effect. And then $47 million the next year

Reduced corporate tax rate
(even tually from 6.5 to 5.9 percent at the top bracket): $9.8 million tax cut for corporations next year, $29.5 million the following year and $39.4 million the third.

Extending the ability to carry forward losses to offset income:  A tax cut beginning with $7.8 million in 2026 and steadily increasing to $70 million by 2032.

A tax break in apportioning costs for corporations that operated in multiple states: A tax cut of $357,000 next year, and doubling in the following two years.

So the sales tax, which disproportionately impacts the poor (think shipments of dog food via Amazon) will go up $47 million when fully implemented. Corporate taxes will go down more than $30 million the second year and lots more when the loss carryforward kicks in.

Who's your daddy, Arkansas Senate?

The House has its own Internet sales tax bill.

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