Democratic Governor in Arkansas Pushes Big Tax Cut

Although national Democrats (and some Republicans) have a love affair with higher taxes, Mike Beebe in Arkansas has convinced legislators to approve a big tax cut. To boost growth and competitiveness, his tax cut should have focused on lower income tax rates rather than cherry-picking certain constituencies, but at least he is reducing the state’s total tax grab. The Wall Street Journal opines:

Arkansas Governor Mike Beebe may not be a man from Hope, but the newly elected Democrat is becoming a voice for tax relief within his party. Last year he campaigned on cutting in half his state’s 6% sales tax on groceries. Last week he made good on the promise by striking a deal with a reluctant Democratic legislature. His compromise also repeals income taxes on the poor and cuts sales taxes that manufacturers pay on their utility bills. All told, taxpayers will save $319 million over two years, or what the Governor calls “the largest tax decrease in the history of the state.” …The Tax Foundation reports that Arkansas is the 27th most taxed state in the nation with a heavier tax burden than neighboring Texas and Tennessee, neither of which has an income tax and rank 44th and 47th. The state is expected to have an $840 million surplus this year and could therefore afford additional cuts in its 6% general sales tax and 7% tax on income over $30,100.