ARKANSAS in BRIEF

 

 

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A TAXING DILEMMA

 

The Arkansas Legislature is facing a monumental task to find the money to fund all the services that the people now expect the state to provide for them. From the basket of worms called the Lake View School Funding Case, to the requirements of Medicaid and prisons, not to mention the billions of dollars for state wide school facility upgrades, an outgrowth of the Lake View debacle, the politicians in Little Rock are looking for dollars that the people of the state don’t have in abundant supply and can’t afford, no matter what the Arkansas Supreme Court ruled. That ruling should make one wonder if the tail isn’t wagging the dog instead of the other way around. 

There are two questions that need to be answered to help solve the taxing dilemma. The first question is how did we get into this financial mess and the second one is how do we get out of it?  The mess began slowly with the federal government issuing mandates to the states to spend money on ill advised social programs or lose federal funding for all sorts of things. The next one has to do with the idea that we can somehow tax our way to the top of the economic ladder (read that tax those who have more), thus escaping the low economic ranking of the state. And one more of the many idiotic ideas is that taxing those with higher incomes will pay for government initiatives that will somehow help the people who are numbered amongst the poor by the government to rise toward the top.

The programs mandated to the states by the feds only make the lack of tax resources worse for lower income states. Something has to give and it is always the taxpayers who must give more to support the income redistribution schemes. The only way to stop the incessant drumbeat to raise taxes is to eliminate social programs that only create government dependence. The people dependent on social programs need to return to self reliance and by so doing then a lot of problems will disappear.

But there is a road block to changing the status quo which is exemplified by Rep. Mark Martin, R-Prairie Grove who said, "One of the things I don’t favor as a conservative is a progressive tax. But a regressive tax should be considered downright evil because it puts a burden of the government more heavily on the backs of the poor, which is not a right position, either." (Source, Arkansas Democrat Gazette  MICHAEL R. WICKLINE, February 13, 2005)  Here is the attitude that is so pervasive in our society. It is that the poor, as determined by the government, should pay little or none at all while those with more should foot the bill for all the politicians create. What is wrong with everyone paying taxes and sharing in the responsibilities of being a citizen who helps provide for the public services? 

Along with the above, the article points out that, “On a per-person basis, Arkansas’ property taxes are low compared with other states’, while its sales taxes are high and individual and corporate income taxes are slightly lower than most states’. Using the idea that, “since we are taxed less on some things so we should pay more,” by all means raise taxes on those who can afford to pay, especially property owners. That is the mind set of many legislators and citizens and it is wrong.

The state will always have a low ranking since it is by nature attributable to the fact that we don’t have the resources that more populated states possess. But when looked at on the level of resources that are available, Arkansas has a standard of living that is on a par with other states that have comparable resources and demographics of like kinds.

 When taxes are raised on property owners the many who don’t own property are home tax free again. Along this line is the fact that the free ride is enhanced by allowing those who don’t own property to vote for millage increases. Why should non-property   owners have a right to vote to raise the taxes on property owners? It is another form of from those with the most ability to those with the most need. In other words, it is a variation of the socialist/communist thinking that is so pervasive in our nation and has found a roost in Arkansas as well.

Indeed, the tax paying people are facing problems caused by only a few paying for the benefits received by the many. Shouldn’t all who enjoy the benefits of our society pay taxes to help support our way of life?  If they did, the taxing dilemma eventually will be history.

© 07/20/2011 DEC