Master Log

Get Ready Cause Here I Come to a State Near You ~ Taxes, more Taxes and Obamacare

2011-03-21T00:16:00.000-05:00

Only two weeks left in the Arkansas 88th General Assembly Session and what a two weeks it will be. Here is the calendar for just next week~ (http://ow.ly/4iqgE )

Tomorrow the Special Language Committee is meeting and according to statements made by Senator Kim Hendren and Rep. Tim Summers and Russ Carnine at a breakfast I attended Saturday morning, this committee needs to be abolished. Evidently there are some shenanigans that go on in that room that would make even Rod Blagojevich blush.

The Special Language committee is evidently going to be voting on an unpublished amendment by Rep K Ingram, published here now, tomorrow that would take some $3million from the Land Commissioners budget and use it for special ear marks that are lined out on page 6 , thoughts? you decide~

Also Tomorrow in the Senate Transportation Committee the Diesel Tax, HB1902 is on the agenda. Keep in mind, as posted before, this bill increases Arkansas’ diesel tax to 7.7 cents HIGHER than all of our surrounding states (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi). Diesel taxes are almost entirely passed on to consumers in higher cost of retail goods including food, clothing, office supplies, etc. (according to a Stanford University study conducted in March of 2010.1) For every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents. Because Arkansas has the third highest per capita recipients of social security payments in the United States, just over 20% of our population2, the burden will be felt most significantly by those living on fixed incomes

Another tax to be on the look out for Tuesday is the Hwy Tax HJR1001, due before the House State Agencies Committee.

If that ain't enough to get your dander up then start looking for the "Head and Shoulders" cause the bill to implement Obamacare in Arkansas I am told is set to run on Wednesday in the House Insurance and Commerce Committee. HB2138 by Rep Hyde which according to an email was amended late on Friday, copy of Amendment here.

Not sure where the Senate twin (SB880) is to this but it hasn't been amended yet. Arkansans beware that they could ram Obamacare thru here in Arkansas in as little as 3 days…”

Bill Adventures~

2011-03-15T19:47:00.000-05:00

With more than 2300 bills having been filed this session you can imagine the frenzy with which they are shuttled from the filing stage, through committees,both houses and, if the pass the muster, ultimately to the governors desk .

If you just look at the House Education Committee you will see that they had nearly 100 bills on their agenda for today alone.

The Twitter-verse was filled today with a flurry of activity as it becomes crunch time in the Ole Arkansas Legislature. There is even a bit of a buzz about Saturday Sessions in order to get everything accomplished by April 1st.

Some things to take note of today. Sen. Rapert's SJR4 - the “Taxpayer Protection” Amendment was stopped in the Senate State Agencies Committee. A Tweet directly following this news from Rep. David Meeks was "Msg of the day: Its ok to refer tax increases to the voters but not a taxpayer protection amendment? Really?"

Two other candidates for the 2012 ballot were taken down SJR6 – a bill to limit the total amount of years served to 14 years total by Sen. Bill Pritchard, and SJR7 - the bill to eliminate and consolidate certain constitutional offices by Sen. Robert Thompson.

That committee approved Sen. Hutchinson's SJR2 - the bill that will put the Highway Commission, Game and Fish Commission and the lottery appropriation under the supervision of the state legislature and SJR5 - a bonds bill for cities and counties by Sen Files.

The Diesel Tax (HB1902) was not heard in the Senate Transportation Committee today. I am not sure what that means or where it stands but will have an update as soon as I know anything~

Charter School Bill (SB346)- a bill that would remove the limitation on the number of open-enrollment Charter Schools, made it out of the Senate today by a vote of 20-10 and is on it's way to the House Education Committee~

Prison Reform (SB750) passed through the House Judiciary Committee and is headed for it's last vote before going to the Governor for his signature into law. (Read more...)

Several appropriation bills failed in the House today, visit the Twitter Feed at the #ARLeg for details.

Some other bills to watch

As I posted earlier today the Capital Gains Tax Reduction (HB1002) and The Constitutional Offices Transparency Bill (HB1046) will both be heard tomorrow. You still have time to make a difference in helping to cut taxes and promote government transparency. (Read more...)

The Clean Energy Act, SB721 by Sen Sue Madison, was suppose to be heard today but will be heard on Thursday by the Senate Insurance Committee.

I received an email today that had this letter from Larry Thompson, Financial Services Director for City Water & Light Jonesboro:

"This bill includes a 20%/200mW renewable portfolio standard (RPS) for Arkansas (23-18-904(c)(1)(B)). Each utility would be required to purchase renewables under a tariff based on its load ratio share. These higher-cost renewables will increase our retail rates to families, business and industry.

Since many cities purchase power thru full-requirements, long-term agreements, this renewable mandate may be in conflict with these contracts. The cities which own more than 80% of their needs may find some of their generating capacity effectively “stranded”. This could further increase prices to customers."

Also received this update from the Family Council on 7 Pro-life bills to watch~

An Opportunity to Engage for Transparency and Lower Taxes

2011-03-15T10:54:00.002-05:00

Tomorrow will be a big day at the Capitol. This is a wonderful opportunity for you and your friends and family to engage, impacting the future of our state and the economic future of our children.

The Capitol Gains Tax Cut, HB1002 will be heard at 10 am by the Senate Revenue and Tax Committee. Rumors flying that key members will not be present- Please call Committee members and respectfully request they attend and vote.

Uncommitted Votes: Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville). Senate Phone 501-682-2902.

There is also a bill that has been flying under the radar which is a huge step for government transparency, HB1046, TO PROVIDE THAT CASH FUNDS RECEIVED BY CONSTITUTIONAL OFFICERS OR STATE AGENCIES AS A RESULT OF AN AWARD BY THE COURT OR SETTLEMENT AGREEMENT ARE SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY.

It is scheduled for the Senate State Agencies at 10 am as well.

It is my understanding, that the Attorney General has the majority of discretion currently of where this money is spent, although he told me that the Judges are involved to an extent.

There are millions of dollars that flow in and out of this fund and in the spirit of transparency the tax payers of Arkansas need to know the details of that flow and have more oversight.

The Arkansas Senate sent a resounding message on transparency yesterday with a unanimous vote for the "online checkbook" This would be an additional step to help bring fiscal responsibility and government transparency to our state. Please call the committee members and ask them to once again stand with Arkansans and support transparency.

WINNER WINNER~ BUDGET THINNER... AND ONLINE

2011-03-14T17:39:00.000-05:00

Today was an EPIC day in the Arkansas Legislature!

By a vote of 5-76-7 the House voted down 113 GIF (General Improvement Fund) request, totaling nearly a BILLION dollars. WAY TO GO!

They also reportedly voted down another 8 bills according to Tolbert Report. In his post today Jason explains what GIF's are and list the other 8 bills (read more...)

And that's not all...

A tweet from Rep. David Meeks this afternoon said "I've been assured that HB1992,the severance tax bill, will be pulled.It has been killed for now. Will let u know if that changes."
You will recall that HB1992 was the "shale tax" bill that I spoke of in my post "I Picked the Wrong Week..." and the committee meeting that was so horrible.

But wait there's more...

Just when you thought it couldn't get any better, HB2060, the bill that was a mandate for union dues to be taken from paychecks and paid directly to the union is being pulled and will be removed from the calendar~

AND.... Drum Roll Please

The Arkansas State Senate UNANIMOUSLY voted to approve SB221 the online checkbook bill!

IT IS A GREAT DAY IN THE STATE OF ARKANSAS~
PLEASE CALL YOUR REPRESENTATIVES AND SENATORS AND TELL THEM YOU APPRECIATE THEM STANDING WITH ARKANSANS!

AND>>> While you have them on the phone encourage them to vote the rest of this session to GROW JOBS~ NOT GOVERNMENT~ Yes on Capital Gains Tax Cut (HB1002), NO on Diesel Tax (HB1092) and Internet Tax(SB738)

A Note From AFP Arkansas on TAX Issues~

2011-03-14T16:37:00.000-05:00

Stand with AFP Arkansas

Grow Jobs NOT Government

Capital Gains Investment Tax Reduction: SUPPORT

When it comes to creating new jobs, Arkansas is at a competitive disadvantage. Texas, Tennessee, Oklahoma, Missouri, Mississippi and Louisiana have eliminated or have reduced the job killing capital gains tax. Arkansas has the opportunity to do the same by passing HB 1002. According to the Wall Street Journal, “Businesses in high tax states invest less…and this leads to lower productivity and eventually lower average pay for workers.” Let’s invest in Arkansas future by growing jobs, NOT government!

Uncommitted Votes: Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville). Senate Phone 501-682-2902.

Billion Dollar Diesel Tax INCREASE: OPPOSE

HB1902: A bill that increases Arkansas’ diesel tax to 7.7 cents HIGHER than all of our surrounding states (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi). Diesel taxes are almost entirely passed on to consumers in higher cost of retail goods including food, clothing, office supplies, etc. (according to a Stanford University study conducted in March of 2010.¹) For every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents. Because Arkansas has the third highest per capita recipients of social security payments in the United States, just over 20% of our population², the burden will be felt most significantly by those living on fixed incomes.

Uncommitted Votes: Sen. Paul Bookout (Jonesboro), Sen. Linda Chesterfield (Little Rock), Sen. Jerry Taylor (Pine Bluff), Sen. Larry Teague (Nashville). Senator Jake Files (Fort Smith), Senator Bill Sample (Hot Springs) Call Senate Phone 501-682-2902

1.http://www.gsb.stanford.edu/facseminars/events/applied_microecon/
documents/ame_10_10_marion.pdf
2.Social Security Administration Master Beneficiary Record

Remember, states with more economic freedom grow faster, have better wages and better quality of life. Let’s get government out of the way and work together to grow jobs, not government!

For Freedom & Liberty,

Teresa Crossland-Oelke
Arkansas State Director
Americans for Prosperity

“Man is not free unless government is limited.” - Ronald Reagan

Update on Internet-TAX

2011-03-13T22:03:00.000-05:00

Thought Arkansans would be interested to know what impact the "Internet Tax" our legislators passed through the Senate last week is having in other states such as Illinois.

Illinois Governor Pat Quinn (D) signed the tax into law on Thursday. Amazon and other online retailers wasted no time pulling out.

Call your Representatives and let them know you do not want to follow Illinois~

Here are a few stories with the details~ Pay attention Arkansas!

From Townhall Finance~ Amazon cuts Ill. ties over sales tax collection

"Amazon.com has made good on its threat to cut ties with Illinois affiliates because of a new law requiring the online store to collect sales taxes.

Amazon notified its Illinois partners Friday that it will stop doing business with them April 15. It calls the tax law "unconstitutional and counterproductive.

Online retailer Overstock.com said later that it also will cut ties with Illinois-based partners beginning May 1.

Gov. Pat Quinn signed legislation Thursday that requires online companies to collect sales taxes on Internet purchases if they have any affiliates based in Illinois. Affiliates are businesses that refer customers to Amazon and Overstock and receive commissions on purchases.

The sales tax always applied to Internet sales. But individuals _ not online businesses _ were responsible for paying it. Few people did.

From Investors.com Illinois' Illogical Internet Tax

Fiscal Policy: Illinois becomes the latest state to enact a law imposing a sales tax on Internet retailers. Advertised as saving "main street" jobs, it's yet another creative way to drive them off.
Ignoring the truism that when you tax something you get less of it, Illinois Gov. Pat Quinn on Thursday signed legislation making the Land of Lincoln the latest state to enact what's dubbed the Amazon Tax. It's designed to collect state sales taxes from online companies if in-state businesses do business through websites such as Seattle-based Amazon.com.

In the past, online companies such as Amazon avoided collecting and paying state sales taxes, arguing they have no physical presence in a given state. A 1992 Supreme Court decision found that businesses had to collect sales taxes only in states in which they had a substantial physical nexus there.

Amazon has no physical presence in Illinois, but its affiliates — companies that market through Amazon — do.

Illinois now joins Hawaii, North Carolina and Rhode Island in getting around this impediment by considering affiliates as the required nexus. Amazon's in court with New York over a similar law.
According to the Tax Foundation, such taxes do not produce huge revenue streams. "Rhode Island," it says, "has seen no additional sales tax revenue from its Amazon tax, and because Amazon reacted by discontinuing its affiliate program, Rhode Islanders are earning less income and paying less income tax."

Illinois has about 9,000 such affiliates, and Rebecca Madigan, director of the Performance Marketing Association, an affiliate trade group, estimates the state will lose 25% to 30% of tax revenues collected from the affiliates themselves as they lose business, cut jobs or move out of Illinois.

"We had opposed this new law because it is unconstitutional and counterproductive," Amazon said in a letter announcing it was severing ties with its Illinois affiliates. Businesses targeted by the new tax are already packing their bags to move to friendlier tax climes.

Until Quinn's action in signing what is called the Main Street Fairness Act, those Amazon or Overstock.com affiliates didn't have to collect the state sales tax as a local store selling the same product must.

Quinn says this law "will put Illinois-based businesses on a level-playing field," putting online retailers under the same tax burden as brick-and-mortar stores.

Likelier, it will simply force businesses to flee the state and leave their brick-and-mortar offices and buildings empty.

I Picked the Wrong Week...

2011-03-12T11:22:00.000-06:00

I felt like Lloyd Bridges in Airplane, "I picked the wrong week to stop drinking"... Red Bull...

My youngest daughter, Hannah, and I spent this past week pacing the halls of the state Capitol trying to keep a pulse on what is going on with all the tax increases, tax cuts and new government regulations.

It started very late Monday night when news spread fast about Governor Beebe hoping to make Arkansas the Flagship for socialized healthcare by being the first state to fully implement Obamacare. (Read more...)

Which, among other reasons, is why Rep Ed Garner chose to not run HB1002, Captial Gains Tax Cut on Wednesday (will run next Wednesday), to allow the focus to be on Sen. Missy Irvin's bill SB 709, a bill that would have required state agencies to document the expenses they incur to implement the federal health law. That committee meeting (IMHO) was a embarrassment to the system and to our state. (Read why...)

Thursday brought the "Internet Tax" bill that flew threw the Senate 26-7, meaning many thought-to-be conservatives voted YES to this tax increase. (Read more...)

But Friday was the clincher. I was truly feeling the depths of Mr. Bridges' sentiments as I scoured the Capitol for the nearest Red Bull vendor.

Yesterday morning bright and early the "Shale Tax" bill was heard in the House Insurance and Commerce Committee. (scratching my head) One might think that it would be heard by the House Revenue and Tax Committee. Oh wait the House Revenue and Tax Committee is majority Republican....

This meeting was the Coup de grace' of back room politics.

(this is a true parenthetical moment ...My brain just did a flash to Tony Soprano saying "I'm in the waste management business. Everybody immediately assumes you're mobbed up. It's a stereotype. And it's offensive... There is no Mafia.") I'm not sure why that scene just popped into my head, let's continue.

The "Shale Tax" meeting was packed. The media reported 250 but I can tell you if there was one, there were 400. The word was spreading fast that Speaker Moore was considering not running the bill because he felt he did not have the votes, even in this stacked committee, to get a do pass; plus the size of the turn out (and I am not speaking of the number of people).

But he ultimately did and it was quite the show. Don't take my word for it, watch it for your self here http://arkansas-house.granicus.com/MediaPlayer.php?view_id=2&clip_id=393

I was slinging the Red Bull back one after the other around the time the House convened at 10 am, anxiously awaiting the floor vote on HB1902, another bill Speaker Moore supports, the "Diesel Tax" bill, that would raise the price of diesel fuel on Arkansans an additional .05/gal over the rest of the nation. (Read more...)

In case you haven't heard the diesel tax passed through the Arkansas house 67-24. Once again legislators Arkansans thought they could trust to protect us from additional taxation and government regulations voted to increase the cost of diesel fuel on us by .05/gal.

Don't be fooled by any rhetoric you hear them justifying it about putting it to a vote of the people, Horse Feathers!, we sent them there with a CLEAR message in November, NO MORE TAXES.

Not only that but with that vote the said yes to spending millions of tax payer dollars to do it. See the powers that be recognize you can't let a good crisis go to waste, when thousands of Arkansans are dying everyday because of lack of good roads and safe bridges. We must implement this tax NOW by holding a SPECIAL ELECTION, which will cost more than 1million tax payer dollars (some estimates I have gotten over the last 24 hours say $2million) EACH time.

I say each time because unbeknownst, evidently, to several who voted for this tax increase, the language in the bill provides that the Governor can run "subsequent" elections if the proposition fails as many times as it takes to pass and as often as every six months (page 10 staring line 7 http://www.arkleg.state.ar.us/assembly/2011/2011R/Bills/HB1902.pdf)

We also know that there will be an "education" campaign from our illustrious protectors, to ensure that every Arkansan knows the urgency that is before us with regards to our roads.

Watch the House vote here~http://arkansas-house.granicus.com/MediaPlayer.php?view_id=2&clip_id=394

Friends, I know you are busy, tired and perhaps feel unable to make a difference. But that is simply not true. If not for the people who have engaged in the past two years all of this stuff would have already been implemented with not a single hiccup. We have been able to shine the light on what has been going on now for decades right under our noses, and we ARE MAKING a difference.

Regardless of what you have been told the government is still run of, by and for the people. The people just need assert their power by the means afforded us in our system, IT WORKS! We just need to work it.

What you can do~

Spread this information FAR AND WIDE, make sure those in your spheres of influence know what is going on, it affects their families too.
Find out who your elected officials are and COMMUNICATE with them. Let them know you willing to do the work it takes to come alongside them so they CAN represent YOU according to your beliefs and values
Read and investigate. What episode of Glee is more important than the future of your children and the families in our communities.
Ask questions. Tons of questions
GET INFORMED AND ENGAGED~

If you need help and want a little more direction, call me 501-258-6353, the more people we have seriously involved the faster we get our state on the right track and the more we secure the futures of the next generation.

The Truth about the Diesel Tax

2011-03-10T22:50:00.000-06:00

Today the House Public Transportation Committee allowed an increase to Arkansas Diesel fuel to move forward. Speaker of the House, Robert Moore's HB 1902, which would increase the cost to Arkansans for diesel fuel an additional .05 per gallon, sailed through the republican controlled committee on a voice vote with nary a roll call.

The committee has 10 republican members, 3 [Reps. Denny Altes (R-Fort Smith), Gary Stubblefield (R-Branch), and Prissy Hickerson (R-Texarkana.)] of which admitted to blogger Jason Tolbert they voted for the bill. (read details here)

This bill will it the House floor tomorrow afternoon. Here some things you should know and pass on to your representative.

**This information provided by Teresa Oelke, Executive Director of Americans for Prosperity Arkansas.

The Arkansas chapter of Americans for Prosperity opposes HB1902, a bill that increases diesel taxes. Currently, Arkansas has the highest diesel taxes in the region (Missouri, Oklahoma, Texas, Tennessee, Louisiana, and Mississippi) by 2.7 cents. This measure will increase Arkansas’ diesel tax to 7.7 cents higher than all of our surrounding states.

More importantly, diesel taxes are almost entirely passed on to consumers according to a Stanford University study conducted in March of 2010.[1] According to the study, for every one cent diesel tax increase per gallon, Arkansas consumers face an increase retail price of 1.09 cents. Because Arkansas has the third highest per capita receipiants of social security payments in the United States, just over 20% of our population[2], the burden will be felt most significantly by those living on fixed incomes.

Proponents of this legislation admit the tax increase will pull $100 million dollars in tax revenue each year out of the private sector, one billion over ten years. Each year, that is $60 million in NEW taxes or $600 million in new taxes over ten years taken out of the private sector.

Arkansas AFP will score the vote on HB 1902 on their legislative score card.

Overview

In a detailed study of the effects gas and diesel tax increases have on consumer prices, Stanford University concluded “We find that state gasoline and diesel taxes are on average fully passed on to consumers.”[3] In regards to diesel taxes, “Our base findings indicate that diesel taxes are fully passed on to consumers. Increases in state diesel taxes of one cent per gallon lead to an increase in the state retail price of 1.09 cents.”[i]

In addition to keeping the .04 cent diesel tax that is schedule to sunset; this bill adds .05 cents to the diesel tax, for a tally of .09 cents in diesel taxes increases. This will push Arkansas to have the highest diesel tax in the region by 7.7 cents[4] which puts us at a significant competitive disadvantage.

[1] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

[2] Social Security Administration Master Beneficiary Record

[3] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

[4] http://www.easy-tax-information.com/support-files/diesel-fuel-taxes-by-state-january-2011.pdf

[i] http://www.gsb.stanford.edu/facseminars/events/applied_microecon/documents/ame_10_10_marion.pdf

Internet Tax Passes Through Senate

2011-03-10T21:54:00.000-06:00

Some Arkansas legislators are still evidently not convinced that Arkansans were serious in November when we sent a resounding message to stop raising taxes and begin to reign in spending.

Today the Arkansas Senate passed the "Internet Tax Bill", SB 738, by a vote of 26-7-2. "Yes" votes would include all 20 Democrats and 6 Republicans.

Many proponents of this bill will tell you it is not a tax increase, which technically is true, BUT the net effect is a tax increase to the consumer on all internet purchases.

According to a letter sent by Grover Norquist, President of Americans for Tax Reform, to Members of the Arkansas State Senate this bill could put Arkansas at risk of legal action, circumvents the law and negatively impacts in-state business, just what we need given the current economic state.

I am wondering why the Attorney General has not stepped in to speak against this particular bill given his consistent concern over the state being sued for other bills. Why just yesterday his office spoke against SB709, which failed to make it through committee, sighting that it might place the state in a situation of litigation.

SB709 would have given transparency to Arkansans when dealing with the implementation of Obamacare here in Arkansas. Read more about yesterday's shenanigans here.

Here is the entire letter sent to Arkansas Senators by Grover Norquist:

I write in strong opposition to establishing an affiliate nexus Internet tax in Arkansas under Senate Bill 738. The bill’s intent is to require out-of-state retailers to collect and remit sales tax on products purchased online by residents. However, the realistic outcome of this legislation will do more to negatively impact in-state businesses than it will to level the playing field.

Current jurisprudence, under the Supreme Court’s ruling in Quill v. North Dakota, requires a business to have a physical presence in a state in order for the state to compel that business to collect sales taxes. SB 738 attempts to circumvent this law and require out-of-state retailers to collect tax by presuming a company has a presence if 1) business is solicited through a third-party affiliate in the state, or 2) it is part of a “controlled group of corporations” with another one based the state.

This bill flies in the face of the Supreme Court’s ruling and could bring a lawsuit to Arkansas at a time when the same tax is already undergoing legal challenge in New York.

Senate Bill 738 could inadvertently punish Arkansas advertisers and other businesses. This tax expands the definition of doing business to include an out-of-state retailer that has an affiliate in Arkansas. If having an affiliate in Arkansas creates a nexus for out-of-state retailers, these retailers will likely terminate advertising or other agreements with Arkansas businesses. This is precisely what has happened when similar legislation passed in other states, such as Rhode Island and North Carolina.

If online retailers sever nexus to avoid the tax change, the state will not raise revenue. In fact, should this bill pass and online retailers sever contracts, 1,800 advertising affiliates in Arkansas will lose business and the state will lose the $9 million in state income tax that these affiliates pay.

There are two potential outcomes. If SB 738 is scored assuming no online retailer severs their in-state ties, the bill will be a tax increase that raises revenue and Americans for Tax Reform considers it a violation of the Taxpayer Protection Pledge. If SB 738 is scored to not raise revenue, it assumes out-of-state retailers will sever their ties with Arkansas businesses, causing them and the state to lose revenue without leveling the playing field between brick-and-mortar and online retailers. This is no contradiction – it simply depends on how economic actors react to the tax change. Regardless, both of these outcomes make for bad tax policy, and the more likely outcome makes the intent of this legislation – leveling the playing field – irrelevant.

For these reasons, the affiliate nexus Internet tax has been rightly rejected in at least 14 other states. We urge you to reject Senate Bill 738. If you have any questions, please contact Kelly William Cobb at (202) 785-0266.

Onward,

Grover Norquist
President, Americans for Tax Reform

New Shale Caucus

2011-03-10T20:57:00.000-06:00

A new bi-partisan caucus has formed in the Arkansas Legislature. The Fayetteville Shale Caucus is made up of 16 legislators (there are others joining) that want to protect the economic well-being of the Fayetteville shale from potentially damaging legislation.

The Arkansas Democrat Gazette reported today that "there have been 27 bills filed that would affect natural gas drilling in the state, many of them by Rep. Kathy Webb of Little Rock."

The article also printed this statement issued from the Caucus:

“We all have issues that our constituents want addressed. Sometimes, however, people file bills with good intent that effect the lives and jobs of people not in their district. It’s become pretty clear the Fayetteville Shale Play has become a target for a lot of recent legislation. The Fayetteville Shale is an economic engine that we must protect. Our goal is to protect the economic impact of the affected counties while working with the industry folks to encourage good corporate citizenship. We think we can do that without a ton of legislation. Hopefully, the people will appreciate the bi-partisan cooperation and the unity between members of different chambers.

We, and many of our colleagues, agree that we need to send the right message to the business community that we appreciate their business and can find ways to work pro-actively through issues. The Fayetteville Shale Play is important to the long-term economic future of our districts and also the State ofArkansas. We are confident this will be a constructive working group that will strengthen the relationship between this important industry and the people of Arkansas.”

TalkBusiness had this to say about the new Shale Caucus:

The Shale Caucus could face their first test tomorrow morning in House Insurance and Commerce. HB 1992, which would eliminate a severance tax reduction for "high-cost" wells, is expected to be considered. The bill could threaten drilling activity in the region, in part due to the low price of natural gas in the commodities markets. More details on that bill and an interview with Southwestern Energy executive Mark Boling, who discusses the economics of drilling as well as some interesting comments on the mystery of earthquake activity in Arkansas, at this link

Members of the Caucus include:

State Representative Mark Biviano (R-Searcy)

State Representative Robert Dale (R-Dover)

State Representative Jane English (R-North Little Rock)

State Representative Jeremy Gillam (R-Judsonia)

State Representative Andrea Lea (R-Russellville)

State Representative Josh Johnston (R-Rose Bud)

State Representative Stephen Meeks (R-Greenbrier)

State Representative David Meeks (R-Conway)

State Representative David Sanders (R-Little Rock)

State Representative Tommy Thompson (D-Morrilton)

State Representative Linda Tyler (D-Conway)

State Senator Gilbert Baker (R-Conway)

State Senator Jonathan Dismang (R-Beebe)

State Senator Michael Lamoureux (R-Russellville)

State Senator Jason Rapert (R-Bigelow)

State Senator David Wyatt (D-Batesville)

Locomotive Speeds Through Arkansas Capitol

2011-03-09T16:58:00.001-06:00

WOW! Did anyone else out here notice that locomotive that roared full-bore through the Senate Public Health Committee today, as SB709 was set for a visit?

As the engineer (Chairman), Senator Percy Malone, grabbed for the whistle to get the train movin,’ people filed in like slabs of beef in a refrigerator car until there wasn’t an inch of space to spare.

It was quite evident from the strike of the gavel that Chairman Malone was going to ensure a fair and balanced debate this morning…NOT (This means I’m kidding).

The meeting hadn’t gotten a full head of steam when Malone suggested time limits for each side. If he’d had it his way, it was evident to me the committee would’ve passed this stop all together. The meeting began at 10 a.m. and was over just shy of 11, with more than a dozen folks slated to speak. So much for open and reasonable debate in conducting the people’s bidness.

I’ll not belabor the blow-by-blow. However two people I spoke with after the meeting, who had traveled from out of state just to testify for this particular bill, were shocked at the way things went.

Christie Herrera, Director Health and Human Services Task Force at the American Legislative Exchange Council (ALEC), and John Nothdurft, Director of Government Relations for the Heartland Institute both travel extensively to testify before legislative bodies all over the country. They shared with me that, in their experience, neither had felt so “railroaded” before. They each recognized quickly that the committee meeting was nothing more than a formality to a predestined end, regardless of what expertise they each brought to the table. In other words, my friends, the thing had been all planned out beforehand.

It was no surprise that the Attorney General’s office showed to testify against the bill, as did a few other government agencies, to which one observer said and was later tweeted by @AFPArkansas: “What happened today was as follows: the gov’t lobbying the gov't for more gov't.” No truer synopsis of the day.

The end of the tracks for SB709 was a split vote 4-4 straight down party lines.

The bug slinger here was Senator David Burnett (D-Osceola) who, up until today’s steamrolling, was considered relatively conservative. He ran last November unopposed, I somehow doubt that happens again.

I’m sure the fact that this is Governor Beebe’s pet project had nothing to do with the speed at which engineer Malone ran his locomotive through today’s session. But as with all speeding trains at some point there is a stop. And it can be ugly to watch.

That’s when passengers that have been riding along for long time without feeling appreciated or respected can become quite disgruntled. That usually means they search for find a new carrier who will listen to them and give a whistle about meeting their needs and concerns.

My hope and prayer is that this happens well before this high velocity engine jumps the tracks, leaving untold numbers of Arkansans among the carnage and wreckage.

As a side note here is a statement released today on this issue from our Lt. Governor Mark Darr:

"I appreciate Senator Missy Irvin’s efforts today to help bring to light the cost of implementing the Patient Protection and Affordable Care Act (PPACA). Senate Bill 709, would have provided to the legislature as well as Arkansans the total cost of this act to our state, how many individuals will directly be affected and the consequences of not implementing it. As a candidate I traveled the state talking about the importance of government transparency and spoke openly against government mandated healthcare. Senator Irvin’s bill would have simply provided the accountability and transparency citizens demand from our Government. We all have the right to better understand how PPACA is going to affect each and every one of us. I applaud the four Senators who voted for this bill in committee as well as the many citizens who lined the hallways, placed calls and emails in support of this bill.”

Other articles you may want to read on the issue:

http://tolbertreport.com/2011/03/09/sen-irvins-senate-committee-showdown/

http://talkbusiness.net/article/ALL-EYES-TURN-TO-FEDERAL-HEALTH-CARE-AGAIN-UPDATED-/1600/

http://www.curtiscolemaninstitute.com/blog1/?p=1585

Arkansas Flagship For Obamacare~

2011-03-09T08:51:00.000-06:00

There are tons of questions and assertions flying around about the latest brouhaha at the Little Rock Capitol~ Obama Care coming to Little Rock.

Evidently Governor Mike Beebe has decided to present his own form of healthcare reform. It is no secret that Gov. Beebe has had visions of Medicaid dollars dancing in his head. One should be careful what they wish for~he has found himself under the thumb of Secretary of the Department of Health and Human Services Kathleen Sebelius and, thus, President Obama.

"In conjunction with Medicare, Arkansas Blue Cross and BlueShield, and private insurance plans, Arkansas Medicaid will design and then implement the nation's first statewide payment-reform initiative. The initiative will pay partnerships of local providers to act as health homes." This is an excerpt from a letter released from the Governor's office. (Full Doc here)

Today will be the first in likely many battle that Arkansans will face in the future to win the war of Capitalism vs. Socialsim in the world of healthcare. Sen. Missy Irvin will be presenting SB709 - "An Act to Create the Healthcare Reform Accountability Act." You may also like to read that bill by clicking here. This is a major step toward real transparency and accountability of healthcare in Arkansas.

Ready or Not Here They Come

2011-03-08T07:31:00.000-06:00

This was made in a hurry so please excuse any typos, on the road and trying to keep up~

Yesterday was the last day for legislators to file bills and nearly 500 bills were filed leaving the total at close to 2400 for the session.

I saw a great point made on twitter yesterday~
"Are we under-governed, or were previous #arleg's so inept that we need 300 bills filed in one day?" This was made at 3pm, so as you can see they used every last minute.

On the Healthcare Front

Stay tuned today for major news on Arkansas Healthcare- Check my facebook -Laurie Lee Masterson or follow on Twitter @LaurieMasterson #ARLeg

Senator Missy Irvin has authored a SB709 that concerns Federal Mandates on the Obama Healthcare bill. This bill would make it mandatory for the Feds to disclose how your money is being spent, where it is being spent and where the monies came from. This bill will be heard on Wednesday- You need to be there

Senator Dismang filed SB593 is on the Senate Public Health Committee agenda could be heard today. This would allow an employer you could benefit from modifying the rules for unemployment insurance.

Legislative Odds and Ends from Talk Business:

Monday was one of the busiest days of the 88th Arkansas General Assembly as 304 House bills were filed and 192 Senate bills met the deadline. In total, there are 2,234 bills being debated this session and that doesn't include any resolutions, which do eat up committee and floor time.

Today, the Governor's prison bill cleared a Senate Judiciary Committee with ease. As indicated in a previous post, this bill may be signed into law by next week. FYI, Kelly MacNeil with our content partner, KUAR-FM 89 News, highlights a prisoner who could have been helped at some point if the changes under consideration were enacted. (read more...)

News on Unemployment

If you didn't know Arkansas' unemployment trust fund drowning in debt, we have borrowed as much as $400 million in the short term and our unemployment woes are not going away any time soon. Senator Dismang and Representative Carter have filed bills restructure unemployment benefits for Arkansans (HB1728 and SB593).

According to the Rogers Chamber, "it is widely anticipated that the federal government will increase the federal wage base on employers. Therefore, passage of state legislation would be the first step in reducing outflows from the fund. The legislation removes indexing of benefits, restricts qualifications, and slightly reduces the length of benefits paid by the state. Current projections estimate that employers will have to pay $21 per employee more in 2012 and $42 more in 2013 to repay the debt to the federal government. This outlay might be reduced with passage of these two bills.

Letting Capital Prompt Gains~ Capital Gains Tax Cut~

2011-03-06T08:15:00.001-06:00

Let’s kick this off with explaining what a capital gain even is in the world of taxation. It was brought to my attention the other day that many people don't have a clue what the term means. It does have one of those foggy, generalized sounds that conjures not a single image.

A capital gain is simply what the tax law calls the profit you receive when you sell a capital asset, which is property such as stocks, bonds, mutual fund shares and a business that constitutes real estate. This doesn’t include your primary residence by the way.

There already is a federal capital gains tax, which means that even without an additional state version, you will pay at least 10% (and as much as 36%) on a short-term capital gain (less than a year) regardless of your home state.

But if you’re a business owner or someone who owns real estate, or has invested his money and lives in the state of Arkansas , you’ll also be forking over another average of 4.9 percent on the sale.

I should point out again at this point that Arkansas is one of the nation's least business friendly states, coming it at 39th. We are the 14th highest in state and local tax burden at 9.8% and Arkansans make $13,000 less than the national average median income.

Our neighbor states (see map above) are kicking our Razorback hindquarters , and Texas, our arch sports rival is growing in business because they have figured out how to attract, rather than repel new businesses that spell additional new jobs. Those Longhorn folks, along with other neighboring Southern states, realize that eliminating their capital gains taxes is just good for business growth.

According to the Tax Foundation's Background Paper: 2011 State Business Tax Climate Index

A far more effective approach is to systematically improve the business tax climate for the long term so as to improve the state's competitiveness. When assessing which changes to make, lawmakers need to remember these two rules:

Taxes matter to business. Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state's economy. Most importantly, taxes diminish profits. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), workers (through lower wages or fewer jobs), or shareholders (through lower dividends or share value). Thus a state with lower tax costs will be more attractive to business investment, and more likely to experience economic growth.

States do not enact tax changes (increases or cuts) in a vacuum. Every tax law will in some way change a state's competitive position relative to its immediate neighbors, its geographic region, and even globally. Ultimately it will affect the state's national standing as a place to live and to do business. Entrepreneurial states can take advantage of the tax increases of their neighbors to lure businesses out of high-tax states.

Columnist Mike Masterson, (full disclosure) my husband, described in his column yesterday this very scenario:

[A] reader told me that in 1991 an Arkansas banker he knew prepared to sell his bank holding company to another in-state, start-up bank holding business. Before the transaction occurred, the seller moved to a neighboring state that had no a capital gains tax on a business sale. This meant that he legally avoided paying capital gains and income taxes.
Six years later, the same holding company was bought out by another in-state bank that was, in turn, was bought by another, all in fairly short order.
“Those were stock exchange and tax-free gains until a shareholder sold his shares in the open market,” the reader wrote. “As a director and shareholder of the original purchasing bank, I bought as much stock in the bank as I could.”
When the time came for him to sell and pay capital gains, he’d already left Arkansas and saved a hefty chunk by avoiding capital gains taxes on the sale. He still holds a fair amount of stock in another bank after selling half of it while living in his new home state. Once again, he paid nocapital gains taxes because he didn’t have to.
Another of his friends in Arkansas owned a professional firm that he wound up selling. He also bought a home and moved to another state without any capital gains tax before the sale was complete. Cha-ching!
“Arkansas has lost quite a bit in sales and ordinary income taxes from just from us,” the reader. “Arkansas definitely needs to have this bill passed.”
Any questions so far? I hope the need for HB 1002 is becoming much clearer for our oddly resistant governor and any legislators who, inexplicably, oppose the measure, which could help attract businesses and jobs to our state.
Successful politicians find it best to vote for improving Arkansas and its people rather than engaging in or knuckling under to self-serving oleboy politics.
“I’m confident that the other Arkansas businessman and I made our moves to preserve those moneys forour heirs and our select charities,” said this reader, who’s approaching his 70th birthday. “No one did it for personal lavishness. We didn’t want or need to do that. There are a great many like us whose other taxes and contributions Arkansas has missed out on because of its current tax structure.
“I want to be sure to leave my family enough to live on and enough to cover almost any adverse health events,” he continued. “My state now has no income, capital gains tax, estate or death taxes. Were Arkansas close to that, I’d live in the River Valley until I die. As is, I live here.” Ole-boy politics.

This is an important bill for Arkansas families and attracting Arkansas businesses. Get the facts and contact the Senate Revenue and Tax committee members, ask them to grow jobs NOT government~

Senators Lamoureux, Files, Sample and Williams have already committed to a YES vote.

Please contact Senators Teague, Taylor, Chesterfield and Bookout

The Cartel~

2011-03-04T17:01:00.001-06:00

It is no secret that America's public education system is in deep kimchi and that billions and billions of dollars are being thrown at that problem every year.

Last night Americans For Prosperity Foundation sponsored a viewing of the movie The Cartel to a packed house in Springdale. The movie "shows us our educational system like we've never seen it before."

We were privileged to also have Dr. Patrick Wolf , Professor and 21st Century Endowed Chair in School Choice from the University of Arkansas attend and share with us some of the information he has spent years compiling with regards to school choice.

Dr. Wolf shared these facts:

Since 1970, real spending on public education in the U.S. has more than doubled, yet student test scores on the NAEP over that same period have not improved

The U.S. spends the most per-pupil on public schooling among all of the countries of the world, yet we recently ranked only tied for 12th in reading, 17th in science, and a miserable 25th in math among 34 developed countries

Currently we spend an average of over $10,000 per public-school pupil across the U.S. and $9,112 in our otherwise low-cost state of Arkansas, yet only 7 of 10 students in our country and our state even graduate from high school

Over half of the freshmen who enroll at our state's flagship public university require remediation before taking serious college courses

Public charter schools receive an average of 40% less public funding than TPS but produce results that are as good or better

Private schools participating in school voucher programs receive an average of 50% less public funding than TPS and, like public charter schools, produce results that are as good and often better

This begs the question why does our public school system spend so much money to achieve such disappointing results?

Dr. Wolf says one possible explanation examined in this award-winning film is the cartel behavior of the national teachers unions

He added, "Although many public school teachers are dedicated to working hard to educate our children, the teachers unions that represent them are all too often the force that says "no" regarding such common-sense reforms such as performance pay, firing incompetent teachers, expanded learning days, and parental school choice."

We will be hosting viewings around the state over the next several months please visit http://www.americansforprosperity.org/arkansas to keep track of where we are.

Our next showing will be in Nashville, AR Tuesday March 8th~ go here for details

Bills You Just Won't Believe- It Ain't Pretty

2011-03-02T17:54:00.000-06:00

For the love of everything good and holy!
Do you have any idea some of the poppycock that is being filed on your time and money at our Capitol?

If I hadn't read it for myself I can say I surely would not~

Rep.Gary Smith's (D-Camden) has filed HB1625 which completely prohibits Pee Wee sports practice if temp or heat index is over 85 degrees. Doesn't that cut out about 7 months here in Arkansas.

And then there is the Hamburger Bill (SB408) filed by Senator Percy Malone (D-Arkadelphia) states that a restaurant that sells hamburger meat that has not been heated to at least 155° F for at least fifteen seconds place a disclaimer on their menu. There are more like these and even more absurd if you can imagine.

I heard Rep Terry Rice (R- Waldron) say the other day something to the affect that if we keep passing these kinds of bills he is going to just go lay in his bed and hope that an airplane does not crash into in home and kill him. LOL.. I have to agree. Are we going to regulate or ban everything that someone has been injured or killed from. Drinking water, eating grapes, BREATHING~

How in the world do legislators plan on implementing and enforcing these laws? Want to know the repercussions of the sports law~ "If a coach violates this section, the parent of a child who is a member of the team is entitled to a full refund of all fees and costs associated with the registration of the child for the pee-wee athletic organization for that season." WHAT? Well that oughta stop it!

And the Hamburger law? There is no penalty described in the bill... ARGGGG

This is a waste of tax payer time and money. There are now over 1541 bills that have been filed and more are streaming in everyday. These are laws and regulations that make decisions for your family and mine. Where we live, if we can open a business, food we can eat, for heaven sakes when our kids can practice sports!

It will take you and I both calling and being involved to get this type stuff stopped~ GET INFORMED AND ENGAGED~

Tax Cut Bills Causin a Rucus

2011-03-02T12:01:00.000-06:00

For those of you that like a good ball game or inclined to like dramas you will not want to miss what is going on in the Arkansas Legislature right now. The Arkansas House has passed 4 tax cutting bills (sponsored by House Republicans), the Senate has passed 3 (sponsored by Senate Republicans), all 7 bills are sitting in the opposing house and tensions are building.

Today in the Senate Tax & Revenue Committee HB1369 (Back to School Tax Holiday Bill) failed. Rep Justin Harris tweeted that the Democrats on that committee were at the root of the failure.

Rep Justin Harris~AR Dems on Rev and Tax voted down the Back to School Tax Holiday! Wow, the people will speak loudly in 2012! Not helping working families through tax cuts is a huge mistake!

On the 18th of February I posted ~Tax Nazi Loses to Minority Majority~ pointing out that the Governor has made is quite clear the only tax cut he endorses this session is his Grocery Tax cut. His wishes may soon come to fruition, the political tensions are mounting.

To spice things up a little Talk Business reported today that Rep Davy Carter will be adding to the mix:

"It has long been a goal of House Revenue and Tax Committee chairman Rep. Davy Carter (R-Cabot) to systematically over a multi-year period restructure the rates on personal income taxes. Carter and Sen. Jonathan Dismang (R-Searcy) are filing a bill on Wednesday to shift those brackets" (read more...)

The next few weeks of the 88th General Assembly will prove to be very exciting, it would be the perfect time for the citizens of our fair state to contact and communicate with their elected officials. Let them know we are not interested in political shenanigans but in what is best for the families and business of Arkansas and that we expect them to take into account our input and to do their due diligence in determining what that is and vote accordingly

Morning Roll Call~ News You Need to Know

2011-03-02T10:04:00.000-06:00

Watch Arkansas Legislators now live
here ->http://www.arkansashouse.org/event/16915

Redistricting Moves Fayetteville~

From Talk Business~ REDISTRICTING PLAN MEETS 3RD DISTRICT RESISTANCE

The discussion about redistricting includes a plan that would place Fayetteville within the same Congressional District as Pine Bluff and Texarkana.

Seriously.

Gerrymandering, anyone?

And a few business leaders in Fort Smith, thinking 2020 might bring a fifth Congressional District to the state, aren’t sure if they want to lobby to keep Sebastian County in the 3rd District or push to move it to the 4th District.

This is not an early April Fools story. (Read more...)

It's All About the Numbers

From Arkansas Business~DFand A: February Revenue Up 18 Percent From Last Year, 15 Percent Above Forecast

The Arkansas Department of Finance and Administration said Wednesday that Arkansas' February net available general revenue rose 18 percent above last year and 15 percent above forecast.
Click here (PDF) to download the complete report.

FEED

todaysthv 9:30am via TweetDeck

Supreme Court: Westboro Baptist Church military funeral protests protected by 1st amendmenthttp://bit.ly/hddBlQ M: http://bit.ly/g1oSYf

ARSenIrvin9:45am via HootSuite

RT @ARGOP: ICYMI: "Bill Filed to Require Financial Impact Report of Federal Healthcare Law" SB 709 by @ARSenIrvin http://ow.ly/46oh6 #arleg #argop

ArkansasOnline 9:02am via twitterfeed

Oil jumps above $100 per barrel: Oil prices have topped $100 per barrel as the New York Mercantile Exchange open... http://bit.ly/e1qwM6

RobyBrock

8:46am via Web

So much for a tiger in your tank. UA researchers look to turn pond scum into fuel. http://bit.ly/eHQbIf

ArkBusiness 8:44am via twitterfeed

Arkansas Senate Panel Looks at Sales Tax Holiday http://bit.ly/fi9UvO

LLMasterson 9:44am via HootSuite

#HB1479 http://ow.ly/46ptP law to allow handguns on Higher Ed Campuses will b heard in Education Comm. 2moro #ARLeg Get INFORMED & ENGAGED

LMasterson 9:41am via HootSuite

Others things that may be heard in committee today~ The Sales Tax Holiday~ by Rep Shepherd HB1369 http://ow.ly/46pii #ARLeg

Roll Call~

2011-03-01T16:05:00.000-06:00

NORTHWEST ARKANSAS~ If you fall into any of these categories: Parents, policymakers, education officials, reformers, intellectuals, teachers and taxpayers ~ You will not want to miss the FREE showing of "The Cartel" Thursday!

Given the chaos in WI & other states in our nation it is time for the masses to become informed & engaged~ Join us THURSDAY~ (for more info go to the eventbrite link or call 501-258-6353)

Register Here

Arkansas Prison Reform

RobyBrock 3:27pm via web

#ARLeg In the end, it looks like Gov. Beebe will get his man - or men, we should say. Full story.http://bit.ly/dZQCrE

From Talk Business~ FINAL PRISON BILL APPEASING PROSECUTORS' CONCERNS

In the end, it looks like Gov. Mike Beebe will get his man - or men, we should say.

After weeks of high-profile resistance from prosecutors regarding his prison reform bill,Beebe said in a press conference today that he was "cautiously optimistic" that prosecutors would endorse his bill.

And it appears they will.

Citing "active negotiations" between prosecutors and the Governor, Henry Boyce, Prosecutor for the 3rd Judicial District and President of the Arkansas Prosecuting Attorneys Association (APAA), said that he expected his group to support the reform measure in the near future. (read more...)

What the Legislators are saying:

Nathan BellThe House just approved raises for employees already earning more than $130000 per year. I voted against these raises. If we can't afford raises for all state employees we shouldn't grant raises to our most highly paid employees.

Representative Ed Garner several increases in Budget appropriations were voted down on the House floor today. There is definitely a change in the Capitol. Appropriations now matter. Appropriations are line item authority to spend money. Funding determines whether or not spending increases. Funding of the Budget is accomplished by the Revenue Stabilization Act at the end of the session. What is being voted down... is even the possibility that spending could increase...by limiting the appropriation. This...is new.

DavidMeeks 2:09pm via HootSuite

All the appropriation bills that are not an increase in spending have been batched and passed92-0.#Arleg

harris4staterep 1:53pm via Facebook

Voted no to staff of the House pay increase! State Employees may not get one, why should they! It passed, I am surprised!

Rep Uvalde Lindsey Blog site~http://www.uvaldelindsey.com/?p=13

Senator Larry Teague Blod site~ http://teaguesenate.blogspot.com/

Rep Linda Tyler Blog site~ http://lindatyler.edelta.net/

Senator Steve Harrelson blog site~ http://www.underthedome.com/

More on Capital Gains~

2011-03-01T15:33:00.000-06:00

This is an important bill for Arkansas families and Arkansas business, get the facts and contact the Senate Revenue and Tax committee members ask them to grow jobs NOT government~

Senators Lamoureux, Files, Sample and Williams have already committed to a YES vote.

Please contact Senators Teague, Taylor, Chesterfield and Bookout

(subscription required to read entire articles from Ark Dem. Gazette)

Mike Masterson's (fully disclosure, also my husband) column today on the Capital Gains tax cut~

Tax reform for Jobs

By Mike MastersonTuesday, March 1, 2011
LITTLE ROCK — Why should the average Arkansan give a hoot about something so seemingly mundane as eliminating a capital gains tax?
GOP Rep. Ed Garner of Maumelle is the sponsor of such a bill, House Bill 1002, which has 40 co-sponsors. It passed in the House 53-40 and is now in the Senate.
Since Garner is the expert, I asked him why this potential law matters to everyday Arkansans. He said that the average Arkansan in our state, which has one of the country’s lowest per-capita incomes, might mistakenly think that eliminating the capital gains tax won’t mean a whit to them.
“They’d be inclined to wrongly think that eliminating this tax on new businesses will help the rich get richer while the middle class and working poor struggle to make ends meet,” he said.
“Supporters say the bill will create jobs, while its opponents call it a windfall for the rich that will cause budget shortfalls, which the governor has targeted at higher education.”
But Garner said that those scare tactics aren’t true by any stretch.
“This is not the typical capital gains tax cut because HB 1002 would eliminate the capital gains tax on all ‘new’ business investments in Arkansas. There would be no reduction of the tax on existing holdings, no socalled imaginary windfall for the rich or ‘trickle-down’ debate.
“Instead, for taking the risk of establishing a new business investment in Arkansas, our state won’t tax any profits the founders earn on their investment if the business is sold a year or more later.”
Why do we need this reform?
“Because Arkansas has a 4.9 percent capital gains tax and all but one of our surrounding states either don’t have this tax or already have eliminated all or some form of their capital gains tax for in-state investments.”
Does this bill matter that much?
“Ask any corporate accountant deciding on where in the South to locate his company’s new facility, or headquarters. Better yet, ask some high-profile Arkansans who move their business they built here before selling it to avoid the tax. These folks stay gone and their investment and charitable dollars go right along with them. You bet it matters when we don’t stay competitive.”

Read entire story here

Another story from the Ark Dem Gazette~ This article was published February 27, 2011

EDITORIALS Over the Ledge Tomorrow, pigs might fly

The House has passed a bill that would cut the state’s capital-gains tax on some property. In a state that could use every bit of capital it can get, this is good news. Now let’s let those who create jobs create even more of them. And not in surrounding states, but here at home. The governor calls this voodoo economics. So did George Herbert Walker Bush when he was running against Ronald Reagan for the Republican nomination in 1980. If faulty memory serves, Ronald Reagan’s tax policies weren’t exactly bad for the country’s economy. (Read more...)

The Wall Street Journal Pipes In~

The State Business Tax Revolt

Governors get a jump on corporate tax reform.

President Obama says he wants corporate tax reform but hasn't proposed how to do it. Maybe he should take a look at the states, where as many as 10 new Governors are moving ahead to reform and reduce business taxes. The motive is to attract more businesses and create more jobs, while avoiding the fate of California and New York.

Take Iowa, which has the highest state corporate rate at 12%. Add that to the federal rate of 35%, and the Tax Foundation says the Hawkeye State may have the highest levy in the developed world. Governor Terry Branstadback ... (read more...)

And then there is my post from Feb 23rd, A Union that Get's It that points to the

National Taxpayers Union is a union I can believe in. Yesterday they sent an open letter to Senator Larry Teague ,(D-Nashville), Chairman of the Senate Committee on Revenue & Tax, and the members of that committee.

Roll Call~

2011-02-28T20:47:00.000-06:00

Not my best work here but I thought there were some things you might want to know~It has been 4 days since I posted, coming off the Defending the American Dream Summit. We had right at 200 people attend when all was said and done. It was an event to be remembered, including but not limited to the tornado that abruptly ended the event.

Herman Cain was his usual amazing self. Suzi Parker from Politics Daily posted this story on Mr. Cain after her interview with him Thursday at the Summit (a must read)

Herman Cain: A Long Shot in 2012, but That's Not Stopping Him

Some things going on you should know about:

TimesRecord 12:30pm via HootSuite

Op/Ed: EDITORIAL — Let's clear the air on fluoride, support Arkansas legislative proposalhttp://ow.ly/44Pk6 #ARLeg #ARLedge #FtSmith

RobyBrock Feb 27, 10:15pm via web

Redrawing Cong. lines a likely partisan divide. The most politically partisan debate of #ARLeghasn't even started. http://bit.ly/heRGMp

LLMasterson Feb 27, 7:51pm via HootSuite

RT @AFPArkansas: Sen. Rapert discusses the Taxpayer Protection Amendmenthttp://www.youtube.com/watch?v=IjUwMhYRWYs #AFPAR #AFPhq #ARLeg

RobyBrock 10:39am via web

#ARLeg A bill to watch on changing benefits to AR unemployment benefits. Part of effort to reduce future debt to feds. http://bit.ly/g7QmXJ

ademillo

10:25am via AP Mobile_client

AP: Ark. House looks at tougher sex offender rules. #ARLeg http://apne.ws/g6CaAI

TolbertReport 10:33am via web

Rep. Garry Smith files HB1625 - limits Pee Wee sports practice during high temperatures -http://bit.ly/fbVM33 #ARLeg

Morning Roll Call~ News You Need to Know

2011-02-23T09:43:00.000-06:00

Tomorrow is the Defending the American Dream Summit in Little Rock~join America’s foremost free-market voices, top experts on grassroots mobilization, and Arkansas’ grassroots leaders from across the state in a massive show of force for our shared belief in lower taxes and more limited government.

A Union that Get's It

There is gallons of brouhaha brewin over tax cuts here in our not so fair (tax) state. A pint of tax cuts have passed though the Arkansas House and Senate. Four tax cut measures have passed the House (HB1002, HB1052, HB1056 & HB1369) and three the Senate (SB274, SB275, & HB276).

The National Taxpayers Union is a union I can believe in. Yesterday they sent an open letter to Senator Larry Teague ,(D-Nashville), Chairman of the Senate Committee on Revenue & Tax, and the members of that committee who will be hearing HB1002, the Capital Gains Tax Cut probably some time next week.

You can read the entire letter here. The correspondence points out the fact that Arkansas’ state and local tax burden as a percentage of state income is the 14^th highest in the nation and higher than any of its neighbors. And Arkansas’ business tax climate ranks only 40^th out of 50" . We share borders with a state without an income tax (Texas) and a state without a broad-based wage tax (Tennessee).

It goes on to explain, "HB 1002 would significantly strengthen Arkansas’ tax competitiveness. By eliminating the tax on capital gains generated by property and new investments in the state" enhancing business activity and employment opportunities.

These are important fact that the MSM seems to be negating in their coverage, just like the letter I posted from Rep. Ed Garner yesterday.

I encourage you to contact the members of this committee and express to them respectfully your desire for Arkansas to be competitive in business and help alleviate some of the tax pressures on those that provide jobs and the families of our state.

FACT MATTER~ GET INFORMED AND ENGAGED

TODAY AT THE CAPITOL

Watch Live HERE ----> www.arkansashouse.org
Today's Calendar --> http://www.arkleg.state.ar.us/assembly/2011/2011R/Pages/Home.aspx

FEED

DavidMeeks 9:17am via TweetDeck

RT @AFPArkansas 2nd Annual Defending the Dream Summit - Tomorrow! http://bit.ly/eDiD9q #AFPAR #AFPhq

RobyBrock 8:52am via Web

#ARLeg Proposed const. amendments ready for airing today. http://bit.ly/gNvZ4z

RobyBrock 7:59am via Web

ICYMI US Rep. Steve Womack says 2 crucial Cong. votes nearing + addresses fed gov't shutdown. http://bit.ly/hlrdXI

DavyCarter Feb 22, 6:49pm via Twitter for iPhone

Question: What services were "cut" when the executive branch introduced its budget with the grocery tax reduction?

ArkansasBuzz 9:23am via twitterfeed

Jim Gaston Named Business Executive of the Year http://bit.ly/eyd1ci

todaysthv 9:12am via TweetDeck

#ARleg panel takes another look at bill that cuts state benefits to illegal immigrantshttp://bit.ly/ffnc48 M: http://bit.ly/gk5grL

EduAlliance 8:45am via web

HOMESCHOOLING: Prosecution is waged abroad, while troubling trends abound in UShttp://tinyurl.com/4p6r7zd #ARLeg #homeschool

AFPArkansas Feb 22, 9:17pm via Twitter for iPhone

Union supporters at the state capitol. #ARLeg http://yfrog.com/h2od5nnj

CAPITAL GAINS and the $44.5 Myth~ Where's the Press~

2011-02-22T18:06:00.001-06:00

Why haven't we read this in the press about the Capital Gains Tax Cut?

Most of the stories that I have seen in the media over the HB1002 filed by Rep. Ed Garner are talking about this huge loss of revenue of 44.5 million dollars. But have you read this?~

Sent to me by Rep. Garner~

The 44.5 Million Dollar Myth

DFA has projected a 44.5 million dollar impact on revenue of the 2013 fiscal year when HB1002 passes. There is no, can be no, impact on the 2012 budget. Zero. Let's examine the fantasy of this assumption. It is important to understand this equation because many State funded agencies, most notably, Higher Education has been told that their budgets will be cut to make up for the imaginary loss of revenue. It is unfortunate that political rhetoric has obscured the facts of this important legislation for job creation in Arkansas.

This is what would have to happen…..

In order to affect the 2013 Budget, capital investments would have to be made in Arkansas after July 1, 2011 through Dec. 30, 2011. A six month window. Those investments would have to be held for over one year and sold in the six month window of July 3, 2012 through Dec. 31, 2012.

The equation for this impact is as follows…

Capital Gains from NEW Arkansas investments made July 2, 2011 through Dec 30, 2011, held for over 1 year minus 30% of the gain and sold at a profit July 3, 2011 through Dec 31, 2011 (current exclusion)

equals Capital Gains taxed at AR income tax rates for the taxpayer

(this is running at an effective rate of 6%)

So…… to have an impact of 44.5 million dollars this must be the equation….

1.064 Billion Gains - 319 million (30% exclusion) = 744.67 million x 6% (effective) = 44.5 million

Assuming an average 10% return, 10.64 Billion would have to be invested and sold in Arkansas investments with 6 month windows for the buy and sell.

If even as much as HALF of all Arkansas investment made could be sold at an average 10% profit after one year…. Total investments in Arkansas in the second half of 2011 would equal 21.28 Billion in new investments in Arkansas.

This is simply not possible. This is a myth. Will the media report this? What is the response of Higher Ed who has been told their budgets will be cut?

Morning Roll Call~ News You Need to Know

2011-02-22T08:46:00.000-06:00

No time for pontification this morning here is the scoop~

Get Schedule here~http://www.arkansashouse.org/events

Listen live to committee meetings and House floor here~ www.arkansashouse.org

Sen. Jason Rapert's Taxpayer Protection Amendment SJR4 will be heard 2day at 10 a.m. in the OSC at the Capitol.

Twitter Links~

ademillo 7:37am via AP Mobile_client

On the agenda for #ARLeg today: Ark. Senate to take up 3 tax cut bills. http://apne.ws/fDW4kV

RobyBrock 8:26am via Web

Follow-up on yesterday's late announcement on Chesapeake sale of Fayetteville Shale assets.http://bit.ly/dM7J5p

FamilyCouncil 8:17am via web

Sen. Larry Teague files bill that would allow for more legislative oversight of the lottery:http://tinyurl.com/4tu6cro #ARLeg

RLACC_Gov Feb 21, 10:51pm via Constant Contact

RLACC Gov Affairs Comm Update ...http://conta.cc/dHSSdV via #constantcontact #arleg #479

ArkansasBuzz

8:08am via twitterfeed

Jim Purcell Interviews Wednesday for Louisiana Higher Ed Post http://bit.ly/gBV0oT

ArkansasBuzz 7:49am via twitterfeed

Homeowners in Foreclosure Average 17 Months Late http://bit.ly/fbeDrB

RobyBrock Feb 21, 5:43pm via web

#ARLeg First GOP candidate files for open House Dist. 54 seat. http://bit.ly/dFBUYF

Chain Reactions~ Protest Across the Nation

2011-02-21T10:05:00.001-06:00

Protest are flaring up across the nation by unions fearing their shtick is up. For decades now they have cost working taxpayers throughout the nation millions of dollars annually and driven state budgets well beyond responsible spending levels.

For nearly a week now teachers belonging to powerful teachers unions in Wisconsin have ignored their duties as educators and filled the Capitol building in Madison. Today one of the major teachers' unions has called on members to start returning to work but keep fighting a proposed rollback of union protections for public employees.

This has sent ripple effects across the nation. A news story this morning from 4029 TV reported that "Hundreds of state employees are expected at the Oklahoma Capitol on Monday to urge lawmakers to retain their pension benefits and implement a total compensation package that would include better salaries."

In Indiana "thousands of union supporters that packed the Statehouse this morning and spilled out onto Downtown sidewalks hoped their show of solidarity would be enough to dilute legislative support of a proposed right to work bill" according to the IndyStar.com

West Virginia state employees plan a rally at the Capitol on Monday to call for pay raises, improved benefits and better working conditions. (Read more...)

Ohio union workers are calling for their Governor to be fired the Sandusky Register reports "Lending support to the public employees were local leaders, politicians and private-sector union workers who held signs describing the Senate bill as a "thief" in disguise and calling for Republican Gov. John Kasich to be fired."

And as I wrote yesterday (Arkansas Unions Perk Up), here in Arkansas the AFL-CIO is calling for a protest on Tuesday at our state Capitol in Little Rock.

I found this wonderful info graphic below by American Majority Action and an amazing website I referenced yesterday, http://www.unionfacts.com/ that might shed some light at to what is really going on. FACTS MATTER.

I hope you will join us on Thursday in Little Rock for the Defending the American Dream Summit as hundreds of Arkansans gather to say NO to overspending, overreaching government and yes to ideas like those purposed by Gov. Walker to get our state budget in order. You are needed!

Morning Roll Call~ News You Need to Know

2011-02-21T08:52:00.000-06:00

Praying for our Troops and our Leaders will do a nation good!

National Guard soldiers deploy for Texas, Iraqhttp://bit.ly/fiLRJw
About 130 soldiers from the Arkansas National Guard have left for training in Texas that will be followed by deployment to Iraq.

The Calendar for the week at the Capitol~ Here.
You can watch many of the committee meetings and the House here.

Moore Roads to Taxes

Arkansas House Speaker Robert Moore (D-Arkansas City) will file a bill this week to increase taxes to pay for road repairs in Arkansas. He will support a second proposal (HJR1001), filed by Rep. Jonathan Barnett (R- Siloam Springs) to give voters the option in November 2012 to increase taxes for highway construction.

Last Thursday the AP reported that "Moore told reporters that he planned to file legislation next week that would raise taxes while the chairman of the House Public Transportation Committee plans to ask the Legislature to refer a half-cent sales tax hike to voters in 2012"

The article also stated that "Arkansas has $23 billion in highway needs over the next decade, but only $4 billion in funding." Sounds to me like we need to really start curtailing some other spending. Barnett expects his  "half-cent sales tax would end after 10 years and could raise about $200 million a year for new road construction. Barnett said he expected to file more details on the proposed constitutional amendment in the next two weeks."

#4 Tax cut in the Barrel

Today during the Senate Committee on Revenue and Tax SB274 filed by Senator Gilbert Baker (R-Conway) will be heard. This bill would  double the sales tax exemption on used vehicles from $2,500 to $5,000. Baker said he plans to amend the bill Monday to bring the number of co-sponsors to about 22 of the state’s 35 senators. This is the fourth tax cut to be heard by committees so far this session.

Keep your fingers on the dial to contact your legislators.

Being Good Stewards According to Governor Beebe

In his weekly radio address, Governor Beebe pays homage to the ADEQ (Arkansas Department of Environmental Quality) for their "reducing our environmental impact." He goes on to say that the ADEQ "has shown tremendous progress toward these goals in recent years. As it strives to protect and enhance the state's environment, it not only "talks the talk", it "walks the walk"."

As you may know the Governor has his Commission on Global Warming, which according to the web site is tasked with giving  "Arkansans our own perspective on the scope and potential impact of this phenomenon and recommend the best steps to take to protect ourselves, our environment and our economy for the future."

I am trying to get more details on this venture. If you want to know more I encourage you to Google "Beebe's global warming commission" a plethora of information will just pop up, let me know what you find out.

     FEED

DavidMeeksFeb 20, 8:23pm via TweetDeck

Join w/people across the state in support of Gov Walker at the Ark Defending the American Dream Summit this Thurs! http://ardream.org #tcot

ArkansasOnline 6:29am via twitterfeed

LR faces hard call as cash tightens: For the past three years, Little Rock city officials have said city coffers... http://bit.ly/dNLLMF

RobyBrock Feb 20, 9:40pm via TweetDeck

#ARLeg Louisiana newspapers reporting that Ark. Dept. of Higher Ed director Jim Purcell will be offered LA higher ed job this week.

4029news 7:56am via twitterfeed

Ark. Senate Looks At Tax Cuts On Groceries, Cars: The Arkansas Senate is considering cutting Arkansas' taxes on ... http://bit.ly/fVH6Wh

4029news 7:56am via twitterfeed

Okla. State Workers To Rally For Pensions, Pay: Hundreds of state employees are expected at the Oklahoma Capitol... http://bit.ly/gQKb7h

Arkansas Unions Perk Up~

2011-02-20T17:04:00.001-06:00

[UPDATE]

COUNTER RALLY ON THURSDAY FEB. 24TH AT THE DEFENDING THE AMERICAN DREAM SUMMIT~

www.ardream.org~ Register TODAY!!

Lest you think the battle brewing in Wisconsin is isolated to that state, think again. This is a battle that working Arkansans cannot afford to lose. Although Arkansas has less than 6% union organization there is legislation continually littering the desk of our legislators to promote and strengthen the union presence and pressures in our state.

According to the Arkansas AFL-CIO facebook page they are having a Solidarity Rally for Workers' Rights this Tuesday (Feb 22nd) at the State Capitol. If you visit their web site you will find legislation they are pushing.

Rep. Jim Nickels (D-Sherwood) who has strong ties to the unions here in Arkansas and has received over $20,000 in campaign contributions from them over two campaigns has filed many bills this session dealing with labor issues. An individual named Jim E. Nickels is listed as the Executive Director of the Arkansas AFSCME.

Last year I met Mr. Nickels for the first time here in Fayetteville as he disembarked from an AFSCME bus that was touring the state to promote EFCA (Employee Fee Choice Act, which is anything but free choice.)

Public sector unions cost Arkansans millions of dollars annually by driving state budgets well beyond responsible spending. That is the story in the majority of states in the US.

According to UnionFact.com, "Arkansas residents could pay 7.13% less in state income taxes if they weren't paying for inflated government employee union wages." Think that would stimulate business in our state?

The site also said:

Union officials have abused the trust of their members. They've misspent member dues and harmed the very same people they promise to protect.

In 2005 alone, federal racketeering investigations resulted in 196 convictions against union officials and employees and $187 million in fines. Union tactics -- including deception and intimidation during organizing campaigns, strikes that hurt members more than they help, spending mandatory union dues on radical political agendas, and the use of anti-democratic voting practices -- are long overdue for exposure.

I am wondering what the unions are all in a tizzy about. According to the Southwest Labor's District Council, an affiliate body of the Laborers’ International Union covering Arkansas, Oklahoma and Texas

government statistics show that the average pay for union construction workers is more than 50% above that of non-union construction workers.

82% of union construction workers have health insurance, compared to only 46% of non-union construction workers.

77% of union construction workers have a pension plan, compared to only 35% of non-union construction workers.

You can expect more unions across the nation to get fired up as elected officials across the nation attempting to bring fiscal responsibly and transparency to government begin to see where millions of tax payer dollars are being funneled.

It will be imperative to make sure we are getting the facts, contacting our legislators and becoming fully engaged.

As stated on Big Government.com's editorial on this issue, "we win this fight or we lose. It's that simple"

Standing in Wisconsin

2011-02-19T13:12:00.000-06:00

I try to stay focused on Arkansas politics because I realize that to be the most effective I have to concentrate where I have the most influence. Having said that this ordeal in Wisconsin is really at the core of the challenges that face American in every state.

Don't you find it funny that folks screaming "Freedom, Democracy, Union" are literally blocking and preventing the process from happening? Democratic Senators have fled the democratic process?

Does it say anything about the Teacher's Unions favorite mantra "it's about the children" when teachers and administrators have shut down schools to get their way?

I mean shouldn't union dues be voluntary? Should the state be in the business of collecting them?

State budgets are faltering because collective bargaining tactics are used to force extravagant pension and health benefits. Do we want unions to have this sort of power?

Seems to me that union bosses in WI are frantic because they know their hand has be revealed. They know that Americans, by in large, are screaming for reforms, transparency and accountability.

Arkansans should look long and hard at the example WI legislators are setting and perhaps adopt Governor Scott Walker's reforms for our state.

Americans For Prosperity and American Majority will join forces again along with thousands of conservative activist to stand in support of Governor Walker (details here and here)

If you wanna know the nitty gritty details, I encourage you to read Michelle Malkin's blog she has followed the story rather closely.

GET INFORMED AND ENGAGED~ You matter and TOGETHER we are making a HUGE difference~

Oh, and yes Max, my lexicon for Governor Walker would be "Champion of Liberty".

Another Chapter in My Book

2011-02-18T10:48:00.000-06:00

As many of you know today is my last day with American Majority. It is the epitome of bitter sweet!

I was as proud to work for American Majority as I was to serve in the US Navy, both are a service to this nation.

I am thankful for the opportunity that American Majority provided for me to share my passion for liberty and freedom. It is especially gratifying that we have had such success in Arkansas. As a matter of fact I believe history was once again made here Wednesday, three tax cuts passed out of our House and are headed to the Senate. Eight democrats (one with amazing courage) stood against our very (faux) powerful Governor, the details of this story are EPIC! Thanks in no small measure to what we accomplished with American Majority Arkansas.

Being this is more of a life path than a career choice, I am positive that our trails will cross again, as we march FORWARD to prevail. I pray blessings over the folks at American Majority as well as their families and future endeavors.

When my friend Kerry Baldwin went out on that proverbial limb to hire me despite my "explosive" personality (funnier if you know my background) it was the beginning of what will be a life long friendship and eternal voyage to obtain and maintain, transparency and accountability in our government on every level.

I will now be working with Americans For Prosperity, as the Director of Grassroots for Arkansas. WOOT WOOT!!
Joining forces with my friends Teresa Oelke and Elizabeth Aymond~ Watch Out Arkansas, you ain't seen nothin yet.

~Tax Nazi Loses to Minority Majority~

2011-02-18T10:32:00.005-06:00

You've heard of the Soup Nazi right, well Governor Beebe is the Tax Naxi. He has been working non stop behind the scenes to control what happens at the State Capitol.

He has supposedly used all the (dirty) tricks of the trade, ie. back room meetings, lobbyist pressures, out right threats, public appearances with state dignitaries and more, but so far to no avail. And the results were EPIC~ three tax cuts passed through the Arkansas House of Representatives with what I am now calling the minority majority!

I was so fortunate to be there and watch (you can witness here) as 53 of our elected officials held the line for the people of Arkansas, 8 (correction there were 9) of them, Democrats, at a very high price. (Vote Roll Call) The[y] voted for HB1002 a bill that would reduce the capital gains tax in our state. The Governor made it very clear that this was not going to happen. (see post from Tuesday)

I assume that these 53 legislators took very seriously the events of Nov 2nd where history was made in our state (Arkansas, Can They Hear Us Now?)and realize that times are a changin.

Day after day there are literally hundreds of people walking the halls of the Capitol that are there for one reason and one reason only, to be a visual reminder to those casting the votes that the people of Arkansas are now fully engaged. Arkansans are determined to make sure our state government is run~ of, by and for the people, regardless of what the Governor and his cohorts want to believe.

We are under no delusion that this will happen over night and are very cognizant of the fact these bills still have to make it through the Senate and ultimately pass the Governor, but what is important is that just like the Little Engine That Could, citizens are realizing that the power is with the people, if , and only if, they choose to exert it.

Here are some of the amazing details of the event from state bloggers. I encourage you to read, it really is one for the history books: "Arkansas's Iron Curtain, Revisited", "Conservative Majority Passes Tax cuts in Dramatic House Session", and "Tax Cut Bills ass House Panel"

Trickle Down Goofy Voodoo Economics? What??

2011-02-15T06:45:00.000-06:00

Dear Governor Beebe, the people of Arkansas would like you to know that we are not buying your political jabber jawing about budget cuts. To say there is no room to improve our fiscal situation is counter to our core beliefs and flies in the face of truth, according to numerous newspaper headlines we have read over the last year.

In a speech this past weekend you said to the Democratic Party of Arkansas Executive Committee:

“We are in the midst right now of discussion and negotiations and threats and counter threats about actions that people want to take primarily on the Republican side of the ledger that potentially impact our ability to deliver essential services or keep this budget balanced like we are talking about,” (read about balanced budget)

Your definition of essential services evidently differs from most Arkansans in that, we would not define essential services as $400,000 spent by just eight of our legislators last year alone on travel and expenses?

Or the 658 vehicles at the Arkansas Game and Fish Commission for only 613 employees.

Nor the bloated $324,000 a year salary we pay to the Lottery Director, Ernie Passailaigue, whose base pay should be $141,603 a year, but the Lottery Commission has been paying him $324,000 a year thanks to an optional multiplier included in the state’s lottery law, which CONSEQUENTLY, according to a statement from Attorney General Dustin McDaniel on February 7th, Arkansas law “expressly prohibits."

Pretty sure not many Arkansans you would find that your $5,000,000 private jet and pilot are an essential service . Being one of the poorest states in the union not many have a private jet at home.

In 70 of our 75 counties median household incomes dropped 6.9% from 2000 to 2009 according to the U.S. Census Bureau and you, Governor are telling us you can't cut your budget?

I would say the math is not the problem, but your definition of “essential”.

More SB183 Shenanigans~

2011-02-14T21:45:00.000-06:00

Being Valentines Day I found this wonderful Hershey's chocolate Kiss which reminded me of some SB183. An enigma wrapped in a riddle shrouded in mystery, much like an earmark wrapped in a fee (tax) shrouded in a bill, .

Last week I told you about the miss recorded votes of Senators Bledsoe and Dismang after this bill sailed through the Senate with a 27-7 vote talley (should have been 25-9).

This sent conservatives around the state into a tissy because if passed it will double fees for car titles, for all Arkansans, to help increase funding for the Arkansas State Police retirement system.

But I am wondering what buildings have to do with Arkansas State Police retirements? In Section 3 of this bill we switch from talking about retirement to talking about some 1995 building fund and depositing $920,000.00.

Voters made it very clear that they will not stand one more increased tax, fee, levy, whatever you wanna call it.

Today the Arkansas House passed over this bill, which means, as far as I understand it, that they didn't want to deal with it today so they "passed over" it and will vote on it another day.

This gives citizens time to reach our representatives and share with them your thoughts on this bill.

Roll Call~

2011-02-13T22:31:00.000-06:00

I will be at the Capitol for the next few days. Here is the schedule for the week. If you want to get a real feel for what is happening during the session I would encourage you to sign up on Twitter. It is very simple and is completely free. When you set it up follow me @llmasterson and be sure and visit the hashtag #ARLeg. You will see messages from tons of people attending committee meetings, talking with legislators and discussing bills~
If you would like to find out how to use Twitter, you can visit American Majority's page "Twitter for Beginners"

TAX TUG OF WAR

This week is expected to be one of the more exciting at the legislature, especially concerning taxes.
You may recall in Governor Beebe's State of the State address where the Governor said"

Beyond that [half-cent grocery tax cut], I don't see any room for additional tax cuts or significant increases in program funding. If we are to retain the enviable national position we now hold, we must remain cautious and conservative. If you make a proposal that seeks to cut revenue or increase spending, the only responsible approach is to state precisely where that money is coming from. If the proposal calls for a tax cut, then it is only fair to detail exactly which existing programs you will cut to offset that loss in funding. Abstract claims of hypothetical future growth don't change the immediate impact that a tax cut will have on state revenues and state services.

But legislators seem not to be detoured by the strong warning of the Governor, over the next few weeks they will be proposing more than $217 million in tax cuts. Evidently many listened to the masses of people who sent a very clear message on Nov. 2nd demanding lower tax, less government and more fiscal responsibility.

Our tax loads in Arkansas are among the most burdensome in the nation. We are 39th in state business tax climate the worst of 7 states in this region, Louisiana being the closest at 36th. Our state and local sales tax rates put us in the top 10 of highest taxed, ranking in at #9.

Not exactly the top 10 list we were striving to make.

On Tuesday Rep. Ed Garner (R- Maumelle) will present HB1002, a bill that will reduce the capital gains tax. Right now Arkansas's Capital Gains tax is 4.9% compare this to other states in this region~Texas and Tennessee have no income tax and therefore no capital gains taxes. Mississippi and Oklahoma have eliminated capital gains on in-state investments.

On Thursday Senator Gilbert Baker (R-Conway) hopes to present his bill SB274, which would raise the sales tax exemption on used cars from $2,500 to $5,000

Other tax cuts proposed include a $8.9 million sales tax exemption on manufacturer's or dealer's rebates for cars, a $3.8 million cut in the sales tax manufacturers pay on utilities and a $3.7 million tax cut for head of household taxpayers with two or more dependents.

Many of the committee meetings will there bills will be discussed are stream live at http://www.arkansashouse.org/. I will update my blog as much as possible, do consider getting on Twitter it is an essential tool of communication for those wanting to become more informed and engaged!

SPEAKING OF SOCIAL MEDIA~

Think Social Media is just for kids or people who play farmville?~ Think again~ "It's a Facebook Revolution," said Akhnoukh. "That's what changed the future of Egypt. Facebook. It's as simple as that."

Being someone who's job description requires the use of social media I have found the web site "Mashable" to be quite useful. A story caught my eye this morning, "How We Use Social Media During Emergencies" , expressing that same sentiment about the importance social media played in the crisis in Egypt.

Journalist at the BBC have been told to use social media as a primary source of information. According to a story in the Guardian, Peter Horrocks, director of BBC Global News instructed his staff in February of 2010 "to make better use of social media and become more collaborative in producing stories."
He was quoted in the story as saying:

"This isn't just a kind of fad from someone who's an enthusiast of technology. I'm afraid you're not doing your job if you can't do those things. It's not discretionary"

It's like anything else new a little intimidating at first but then just like that microwave, VCR and now the ever popular Netflix once you have it you will wonder how you ever got by without it!

I invite you to join people from across Arkansas, some of America’s foremost free-market voices and top experts on grassroots mobilization, in a massive show of force for our shared belief in lower taxes and more limited government.that will gather on February 24th at the Second Annual Defending the American Dream Summit.

Register Today!