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

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The Special Language committee is evidently going to be voting on an unpublished amendment by Rep K Ingram, published here now, tomorrow that would take some $3million from the Land Commissioners budget and use it for special ear marks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

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~  

  

WINNER WINNER~ BUDGET THINNER... AND ONLINE

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~

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

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...

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~

1. Spread this information FAR AND WIDE, make sure those in your spheres of influence    know what is going on, it affects their families too.
2. 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
3. Read and investigate. What episode of Glee is more important than the future of your children and the families in our communities.
4. Ask questions. Tons of questions
5. 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.

Roll Call~

PICTURE OF THE DAY!

FROM MY FRIEND TERESA OELKE
Excessive gov. spending is a lot like excessive drinking. Except we all share the hangover
I like my gov spending how I like my beer: cheap

Jobless Story


Today the National unemployment numbers came out and the number feel from 9.4% in December to 9.0% for January with 36,000 jobs having been created. But the story is a little different here in Arkansas. Talk Business reported that unemployment rates are rising in 75% of Arkansas Metro Areas (read more...)

Numbers Coming Out

Redistricting is a hot issue this year and will be tackled soon by our legislators. The US Census Bureau sent out a press release Wednesday, Census Bureau to Release Local 2010 Census Data for Arkansas, Indiana, Iowa and Maryland, saying our state numbers will be out next week. 

Let the gerrymandering  begin 

               FEED

TolbertReportFeb 03, 4:26pm via web

Power grab alert - Rep. Hall files HJR1002 to create special prosecutors that report directly to#ARLeg - http://bit.ly/eFk6ZN

ProgressiveARFeb 03, 3:56pm via web

Cliff Notes on yesterday's #ARLeg: Immigration, ethics, cell phones, & more. http://bit.ly/gzELl0

AFPArkansas

9:48am via web

Talk Business: #Unemployment Rates Rising in 75% of State Metro Areas http://bit.ly/ecoLZe#ARLeg #AFPAR #AFPhq

ProgressiveAR9:39am via TweetDeck

Going deeper into the 'ethics' bill, herbal snuff, start of school. Analysis from @ArkansasSenate:http://bit.ly/gbUet8 #ARLeg

RobyBrock9:16am via web

FYI - An #ARLeg prison reform primer. Where does the debate stand today? http://bit.ly/fz1V5G

aymond9:05am via HootSuite

RT @ARGOP: ICYMI: The "The Arkansas Financial Transparency Act" filed Thursday would track state spending online http://ow.ly/3PWJN #arleg#argop

ArkansasOnline10:17am via twitterfeed

Government in new dispute with tobacco companies: The Justice Department is in a new dispute with the tobacco in... http://bit.ly/hQJ1xj

RobyBrock7:00am via web

Tyson Foods profits nearly double in Q1 report.http://www.talkbusiness.net/article/TYSON-EARNINGS-RISE-85-/1459/

AFPArkansas9:12am via TweetDeck

Excessive gov. spending is a lot lk excessive drinking. Except we all share the hangoverhttp://yfrog.com/gyoytapj

AFPArkansas

9:13am via TweetDeck

I like my gov spending how I like my beer: cheap.http://bit.ly/d92aF7 #tcot #AFPAR

TEA Parties Brew Results

Ever heard of the TEA Party? If you have been alive in the past two years you have.  TEA Parties across the nation are making a huge difference in American politics and for certain politics in Arkansas.

There are approximately 30 TEA Parties in our state. They range in size from hundreds of people to just a handful but regardless of size they are a force to be reckoned with because they are bursting with folks who have made conscious decisions to become informed and engaged.

The November elections in Arkansas were a clear demonstration of that force. Conservatives won 7 contested Senate and 16 House seats in the election. The Arkansas Republican Party now holds 45 State House seats, 15 Senate Seats, and 3 State Constitutional Offices. The largest freshman class since 1999 was sworn in on Monday fully demonstrating Arkansans want change.

The events of the first week of the Arkansas legislature were already riff with anticipation and enthusiasm. Unlike any other time in Arkansas politics this session is swarming with not just lobbyist, reporters and visitors but with citizens that are determined to make a change in politics as usual. I am sure the  whirly bird and chauffeured rides, huge spun yarns, and phone foolery  would have made it beyond the doors of the capitol but something significant happened, and hopefully will continue to.

Here is a facebook note from David Crow, Chairman of the Faulkner Co TEA Party:

We won!

by David Crow on Thursday, January 13, 2011 at 10:28pm

We want fewer taxes, less spending and smaller government....that is our Tea Party position and we did not back down! AR state senate Joint Budget Com. passed HB 1063 giving raises to Judges and Prosecuting Attor....we said no and in less than 24 hours the House reversed itself and is now removing the raises from the original bill! How did it happen? One person attended the committee mtg and witnessed the vote...challenged the Faulkner Co Tea Party and others across the state to make calls to their reps, and the COL increases are history! The power rest with the people if we use it! This is proof that together we will and are making a difference! There are many other bills our spend, spend and spend progressives liberals want to push through we must have a Tea Party rep in every committee meeting. Keep it up folks....together we can restore fiscal sanity and reduce the size of government!

As a result of the actions of attentive engaged voters, Arkansans were saved half-a-million dollars in just the first week; and legislators are once again reminded that times are a changin and they are accountable to the people.

Once again I strongly encourage you to get plugged in, help broaden the network of responsive individuals by informing your sphere of influence and making sure you have your elected officials contact information.

There will be plenty more comin down the pike, as of today there have been over 160 bills filed that our legislators will deal with over the next several months.

Together we are making a difference, you are needed~

Ballot Issues in Arkansas

Just when you think you know something, it’s time to examine the facts. I have spent several hours actually reading, researching and calling Arkansas legislators to get the FACTS on the ballot issues that face Arkansans on Nov 2nd .

This post is an attempt to give people the information gleaned as a result. I hope you will read this information, do your own research and then pass it on. Knowledge is power, but only when shared!
The three issues are located at this link where you can read the entire bill if you wish. My personal findings are found below.
http://www.votenaturally.org/2010_ballot_issues.html
Additionally this link provides the most objective information I could find.
http://ppc.uaex.edu/ballot/default.htm

Issue No. 1
SENATE JOINT RESOLUTION 3 IS TO
AMEND THE ARKANSAS CONSTITUTION TO PROVIDE FOR
A CONSTITUTIONAL RIGHT TO HUNT, FISH, TRAP, AND
HARVEST WILDLIFE.

Issue No. 1 to my knowledge is cut and dry, it gives the citizens of
Arkansas the Constitutional right to hunt, fish, trap and harvest
wildlife. I encourage you to go to the Public Policy Center link for more details.

[UPDATE]~ There has been some concern expressed over Issue #1 and how it reads, using the word "regulation" One school of thought I have seen expressed from different points of view is if you don't understand it or like the way it is written vote no~

Issue No. 2
HOUSE JOINT RESOLUTION 1004
PROPOSING AN AMENDMENT TO THE CONSTITUTION OF
ARKANSAS CONCERNING THE INTEREST RATE LIMITS.

This is the one to make blood shoot from your eyes. On its face (if it had only one) this amendment would boil down to: Do I stand on the foundation of free markets and individual liberties or not? The way I understand this is it will allow business owners to charge up to 17 percent on lines of credit. While I believe this is excessive, people also do not have to purchase their goods from merchants who charge this rate.

The challenge is there are 5 caveats to this ONE issue, which may explain why there has been a lawsuit filed against it even being placed on the ballot. “A challenge to Arkansas Issue 2 was filed with the Arkansas Supreme Court opposing the measure and asking the court to take the issue off of the November ballot. The lawsuit argues that the measure violates single-subject law and that the proposal combines three separate issues into one measure, sidestepping the limit on Arkansas Legislature to refer only up to three measures in an election year.” (http://ow.ly/2U2tc) No wonder it’s such a challenge to understand and explain.

Since this post was made on BallotPedia, there have been two more issues added.

Currently merchants of higher-end goods such as furniture and appliances are not able to offer in-house lending. Instead, they must send credit customers out of state, putting Arkansas businesses at a disadvantage and diverting that interest revenue to other states. For instance, if you go to buy furniture and you want to finance it, the seller today must solicit your loan from an out- of- state lender or lose money on the loan because our interest rate is capped so low. If not for all the gook all jam-stuffed into this one it might be a different story, but it usurps the Arkansas Constitution.

For more details see Public Policy Center

Issue No. 3
HOUSE JOINT RESOLUTION 1007
TO AMEND AMENDMENT 82 OF THE CONSTITUTION OF
ARKANSAS TO AUTHORIZE THE GENERAL ASSEMBLY TO
ESTABLISH CRITERIA BEFORE AUTHORIZING THE
ISSUANCE OF BONDS FOR PROSPECTIVE EMPLOYERS
PLANNING AN ECONOMIC DEVELOPMENT PROJECT.

This Issue No.3, in my opinion, expands the role of government in the private sector and creates a “slush fund” for legislators. Under Amendment 82, the State of Arkansas already can issue bonds for the purpose of providing infrastructure and other needs to attract companies that plan to invest a minimum of $500 million dollars and hire a minimum of 500 new employees. This was used in the case of a wind turbine business, LM Glasfiber that came to Arkansas in 2007, but has yet to fulfill the obligations set forth in the Amendment. As a matter of fact this company promised to have 1000 employees in the first 5 years and at the three year mark has less than 300, having two layoffs in 2009 and has only invested to date $95 million. Yet, Arkansans have spent $14,900,000.00 tax payer dollars though funds and grants giving “incentives” to LM Glasfiber to come to our state. And just when you thought it couldn’t get any worse this company has a “27-year exemption from the state corporate income tax.”

This “amendment to the amendment” would set the bar lower, thereby allowing legislators to give bonds to businesses at their discretion to attract them to Arkansas. In my view this also is an attempt to gain more control of who comes and who goes. The advocates for this issue say it will help draw businesses to our state. My thoughts: If we lower our tax rates on businesses (Arkansas today is ranked a woeful 40th in the nation for business tax climate) and stop regulating them to death, then the free markets will naturally attract businesses here. The primary reason we are avoided now is because of our onerous tax burdens.

Allowing legislators the power to decide “winners and losers” in the free market, while knowing that Arkansas continues to experience revenue shortfalls and budget restrictions and being the nation’s 12th fastest growing state growing in debt, it’s a step in the wrong direction for Arkansas to give new authority to increase debt.

For more details see Public Policy Center