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KNAPPer
Senior Contributor

Arkansas Republicans Trying to Screw Up the Satte Economy

Arkansas has been relatively insulated by the economy problems and the state budget deficit problems. No one has been laid off state jobs, the teachers are all relatively happy, the roads are in good shape, Counties are OK and since the days of Bill Clinton as Governor, Arkansas has had a balanced state budget. We have no deficit. Taxes are relatively low and you can register your car for $25. The Governor (who is a Democrat) also planned on cutting about 15 million from revenues. The Governor has cut grocery taxes from about 7% to about 3.5% and he has proposed another 1/2 cent cut. But the legislature, which is in Republican control is trying to bring the state down.

 

So the Republican house decided to introduce several tax cutting bills. One raises the amount where used car purchases are not taxable from $2,500 to $5,000. Another gives tax breaks to single parent families. Yet another reduces the severance taxes for gas and oil companies. The Governor said he won't oppose those because he can absorb them with the 15 million in cuts be already planned into the state budget.

 

That wasn't good enough for the Republicans. They have to benefit wealthy people. They want a cut in capital gains taxes that would cost the state some $60 - $65 million. Before the Repubs start crying, here are Arkansa's Capital Gains tax laws: "Thirty percent of net capital gains are excluded from income with the remaining 70 percent being treated as ordinary income. Long-term capital gains are realized on the sale of a capital asset held more than 12 months. Short-term capital gains are realized on the sale a capital asset held for one year or less and are 100% taxable as ordinary income."

 

The Governor will oppose the changes to the capital gains taxes, but will support the others because all but one benefit regular citizens. The severance tax issue is a bone for oil companies. The capital gains tax would create some serious budget problems in a state where the budget is currently balanced. Leave it up to the Republicans to mess with a good economy and try and get people laid off, on unemployment and not paying taxes.

11 Replies
GreaTOne_65
Senior Contributor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

This is getting better and better! Notice, all this states have one thing in common?? The d*mned Republicans are the ones trying to steal the money!

http://www.alternet.org/newsandviews/article/483275/scott_walker_falls_for_killer_prank_by_liberal_b...

Milligan Hay - Iowa d:^)
Veteran Advisor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy


@KNAPPer wrote:

Arkansas has been relatively insulated by the economy problems and the state budget deficit problems. No one has been laid off state jobs, the teachers are all relatively happy, the roads are in good shape, Counties are OK and since the days of Bill Clinton as Governor, Arkansas has had a balanced state budget. We have no deficit. Taxes are relatively low and you can register your car for $25. The Governor (who is a Democrat) also planned on cutting about 15 million from revenues. The Governor has cut grocery taxes from about 7% to about 3.5% and he has proposed another 1/2 cent cut. But the legislature, which is in Republican control is trying to bring the state down.

 

So the Republican house decided to introduce several tax cutting bills. One raises the amount where used car purchases are not taxable from $2,500 to $5,000. Another gives tax breaks to single parent families. Yet another reduces the severance taxes for gas and oil companies. The Governor said he won't oppose those because he can absorb them with the 15 million in cuts be already planned into the state budget.

 

That wasn't good enough for the Republicans. They have to benefit wealthy people. They want a cut in capital gains taxes that would cost the state some $60 - $65 million. Before the Repubs start crying, here are Arkansa's Capital Gains tax laws: "Thirty percent of net capital gains are excluded from income with the remaining 70 percent being treated as ordinary income. Long-term capital gains are realized on the sale of a capital asset held more than 12 months. Short-term capital gains are realized on the sale a capital asset held for one year or less and are 100% taxable as ordinary income."

 

The Governor will oppose the changes to the capital gains taxes, but will support the others because all but one benefit regular citizens. The severance tax issue is a bone for oil companies. The capital gains tax would create some serious budget problems in a state where the budget is currently balanced. Leave it up to the Republicans to mess with a good economy and try and get people laid off, on unemployment and not paying taxes.


When the word gets out to companies looking to strengthen their bottom line in high taxing states. like Illinois, Taxachusetts, and others, .... they will flock to your state to build their future in Arkansas.   That will create tons of new jobs and fortunes for many Arkansans..... especially for the State Treasury of Arkansas.

Tax cuts do not cost....., they PAY Big dividends in increased economic activity.

Tax cuts are like putting fertilizer on the economic fields of productivity.

r3020
Senior Contributor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

 

"Tax cuts are like putting fertilizer on the economic fields of productivity."

Very well said!!

kraft-t
Senior Advisor

Re: Speaking of fertilizer

Thanks for the load you dumped on here.

GreaTOne_65
Senior Contributor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

I wonder, would you be so proud of that statement, if you were the one giving up another 15% of your income to pay for corporate tax cuts! You really don't have a clue, do you?

schnurrbart
Veteran Advisor

Re: Arkansas Republicans Trying to Screw Up the State Economy

No, tax cuts, especially corporate tax cuts, only increase the bottom line of the producer.  Much like the increase in gas prices over the last two weeks will ensure another record profit for the oil companies.  Gas is up 44 cents in the last 13 days in Arizona with an 11 cent difference between the west valley and the east valley but the reason is given as "distribution" problems like it costs more to bring gas into one side of the metropolitan area over another side!

KNAPPer
Senior Contributor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

Companies already get sweetheart deals in tax breaks to move to Arkansas. It is the job of the Economic Development Commission to see that companies looking to relocate to Araknsas get good deals on land, facilities and taxes. I believe they get special property tax deals too. This capital gains tax deal is not for business that stay. It is for people looking to aquire an asset and sell it in less than one year at a 30% rate break or over a year at regular income tax rates. You need to think about that when you think about capital gains - they go to people who SELL, not build and stay.

KNAPPer
Senior Contributor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

What? No comeback to that? Maybe republicans never knew what capital gains were to begin with....

hardnox604008
Advisor

Re: Arkansas Republicans Trying to Screw Up the Satte Economy

Like competitive currency devaluations- nothing but a race to the bottom.