Governor Sarah Sanders called a special session of the legislature this month (June) with the goal of passing tax relief legislation. Both of Governor Sanders’ proposals were passed and signed into law. Her plan included a reduction of the top income tax rates and property tax relief in the form of an increase in the homestead property tax credit, which applies against your property tax bill.
After being in office for less than a year and a half, Governor Sanders has already passed three reductions in Arkansas income tax.
In a social media post, former Governor Asa Hutchinson congratulated Governor Sanders on her tax relief legislation. But the way it is written, it is clear Hutchinson was also trying to steal some of Governor Sanders’ thunder. Here is the text of his post:
“Congrats to Gov. @SarahHuckabee and Arkansas legislators for the special session to lower the income tax rate. Getting the rate to 4.9% was big but the planned reduction to 3.9 is off the charts exciting.”
How is his post an attempt by him to steal some of Governor Sanders’ thunder? The 4.9% rate he mentions as a “big” deal, refers to the tax rate after reductions he proposed and got passed. In other words, he reminds people he too reduced the income tax, and describe his effort as “big” !
Since former Governor Hutchinson wants to grab some of the praise, it is only fair to explain why Governor Sanders’ tax relief legislation gets our praise and former Governor Hutchinson’s does not.
The difference between Governor Sanders’ tax relief and former Governor Hutchinson’s tax “relief” is Gov. Sanders’ plan is real tax relief and Hutchinson’s was a sneaky “give and take away plan.”
In case you have forgotten, in some of Hutchinson’s income tax relief bills, he increased taxation in other taxes to offset some or all the cost of his income tax cuts. Plus, he also pushed tax increase bills that did not include any tax relief. These helped push state revenue surpluses to record levels. During his eight years as governor, he did plenty of bragging about tax cuts, while glossing over his tax increases.
To refresh your memory, here are some increases from the Hutchinson era.
- Took away capital gains tax relief passed in 2013. (After many complaints, legislation phased it back in.)
- Increased sales tax on soft drinks and candy
- Added sales tax on digital downloads (such as downloads of movies, books, etc.) under the sales tax
- Added income tax on unemployment benefits.
- Increased new tire tax and added tax on mounting used tires.
- Added Internet Sales Tax (Arkansans pay the tax on online purchases from out-of-state sellers)
- Increased gas and diesel fuel tax (Included a mechanism for automatic increases in the future)
- Increased tax on tobacco products and e-cigarettes
- Added a tax increase on your cell phone bills
- Added a tax increase on water bills
Hutchinson’s attempt to steal some of Governor Sanders’ thunder, instead shows us that her tax relief efforts are real achievements.
