Our View

Our View

Governor working to make good on tax cuts

You know very good and well Gov. Asa Hutchinson’s no-new tax agenda and his desire to slash the income rates on middle-income Arkansans has got to be getting to all those liberal tax and spend politicians prowling the halls of the state capitol.

After all, it is the very same pro-tax politicians who say the only way to fatten the already swelled education budgets, the coffers of the BILLION DOLLAR Department of Human Services and the scores of other state agencies is to impose more taxes and fees on the already struggling working class.

It is they who balked at Gov. Hutchinson’s no new tax plan to deal with the state’s highway issues during the recent special legislative session, and even though the majority of Republicans supported the governor’s plan to reduce the income-tax rate during the 2015 regular session of the Legislature, we bet a dollar to donuts things won’t go quite as smoothly when he presents plans to propose yet another round of individual income-tax cuts in the 2017 regular session that begins in January.

Yep, that’s right, Gov. Hutchinson said the other day he plans to work with lawmakers during the next several months to determine just how much in tax cuts that the state can afford and how the tax cuts would be applied. The governor’s recently approved fiscal budget factors in nearly $101 million in individual income-tax cuts, and Hutchinson told county judges attending the County Judges Association of Arkansas’ annual spring meeting in Hot Springs, “I’m not done yet.”

And, for those politicians who don’t have a tax-andspend mentality are intelligent enough to realize excessive and unnecessary taxation is a serious deterrent to positive economic growth.

Hutchinson substantiated his tax position by telling county judges that he met with a chief executive officers of a company considering locating “a huge investment opportunity” in Arkansas.

“They said we are comparing with five different states to invest in Arkansas and you have got some advantages, but the disadvantage is your income-tax rate because it is higher than any other state around,” Hutchinson said.

Let’s put this into some perspective by asking everyone reading this to simply take a look at what they pay every year in state income taxes. Then, look at what they pay in personal property taxes each year. If those figures don’t make an impression look at the taxes applied to that so-called “Value Meal” or the “2 for $5” deal at a local fast-food restaurant.

While Walmart and many other local retailers offers some very good deals, look at sales receipt and see how much taxes were applied to the total purchases. Then, ask yourself just how much of your hard-earned spendable income goes to local, state and federal governments? Oh, and let’s not forget the fees and charges local governments tack onto the monthly bills from local utilities and cable providers.

While Hutchinson has been criticized for his no new tax approach and his efforts to reduce the tax strain on the average middle-income Arkansans by tax-andspend politicians, this governor is clearly focused on reducing the tax burden and making Arkansas more attractive to investors.

It is for these reasons we applaud his efforts, as should anyone concerned about the amount of taxes being sucked out of their income.