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Our View

Tax cut task force has plenty of work to do

Republican lawmakers, along with Gov. Asa Hutchinson, are already focusing on another round of tax cuts for Arkansans with taxable incomes below $21,000, by creating a task force that will make recommendations to overhaul the state’s tax code for the General Assembly to consider in the 2019 regular session.

It is being said the creation of this 16-member task force, with the majority being Republicans, was to placate lawmakers who favor larger income tax cuts.

While it is encouraging to hear lawmakers are focusing on tax cuts for the poorest among us, it would be good to know there is a chance middle-income Arkansans could get some tax relief also.

After all, the poorest among us, which are well in excess of 350,000, are offered scores of government subsidies and tax breaks while the middle-class population are largely responsible for paying the taxes that support these subsidies.

With Republicans being the majority in Little Rock it comes as no surprise that this task force is comprised of 10 GOP lawmakers and only six Democrats, which means the governor will probably get the recommendations he was looking for. Because of his position as Senate Minority Leader, Democrat Sen. Keith Ingram, West Memphis, will serve as a minority member along with Sens. Joyce Elliott, D-Little Rock, Missy Irvin, D-Mountain View Larry Teague, D-Nashville as well as House Minority Leader Rep. Kenneth Ferguson, D-Pine Bluff and Rep. Warwick Sabin, D-Little Rock.

While we’re sure these Democrats will surely support this tax break for the low income Arkansans, which will reduce general revenue by $25 million when they start in 2019 and then $50 million a year thereafter, we seriously doubt they will jump on board with cutting the state income tax on the middle class wage earners, or if they do any recommendations will be minuscule.

Senate Majority Leader Jim Hendren, R-Sulphur Springs, pointed out that in light of the governor’s $50 million low-income tax cut that lawmakers approved in 2015, he expects to see the task force put “a lot of focus on the upper bracket” ahead of the 2019 session.

We would certainly hope so.

Hendren is of the belief Republicans have a once-ina- generation opportunity to revamp the state’s tax code from top to bottom, a task we believe will be difficult to convince the liberal Democrats, including those serving on this task force.

We have to agree Arkansas has too many tax exemptions that have been added one by one over the years, with no clear view of how they would interact with each other or the overall effect they would have on the fairness and competitiveness of the tax system.

Let’s all face the fact that one the economic roadblocks this state is dealing with is the tax system.

Economic development, attracting major business and industry into Arkansas is hampered by a tax system that discourages substantial growth.

It will certainly be interesting to see what recommendations this task force comes up with and how they will lessen the tax burden on the citizens they depend on to keep state government operating.