Asa’s Tax Trick: Raise Taxes for the Poor to Give to the Rich

Just in from the Arkansas Democrat-Gazette…


In its current form, Gov. Asa Hutchinson’s proposed income tax cut plan would increase net state income taxes for roughly 200,000 taxpayers by more than $30 million a year, a state finance department official said Thursday. Read more of reporter Michael Wickline’s coverage at the Dem-Gaz website >>>


Max Brantley offers some detailed analysis at the Arkansas Times…


New estimates say some 200,000 of Arkansas taxpayers would suffer a cumulative tax increase of more than $33 million under the Hutchinson plan as drafted. It turns out an increase in the standard deduction won’t be sufficient to offset tax rate increases down at the lower income levels. Example: The plan imposes a 2 percent tax, where only .9 percent is now imposed, on the first $4,300 in income and increases other marginal rates and it takes a while as income moves up for the new rate to drop below existing rates.

We already knew that Hutchinson’s plan to slash taxes by almost $200 million was a boon to the rich.

Previous analysis showed that almost 50 percent of the $200 million would go to the top 1 percent of taxpayers. Further, the top 5 percent, those making more than $199,000, would reap 65 percent of the benefit, more than $125 million of the swag. Read more at the Arkansas Times website >>>