Why Huckabee Raised Taxes
The Arkansas constitution, in a measure that should be lauded by all fiscal conservatives, requires that the state budget be balanced.
More than 90% of the state’s budget is spent on education, Medicare, prisons, and human services.
Naturally, cutting spending is always the first response of conservatives, as it was for Governor Huckabee. But that solution is inadequate when there is very little discretionary spending available in the budget.
Unable to resort to deficit spending (as other candidates are able to do) the Arkansas Legislature was forced to raise taxes to pay for infrastructure repair, conservation efforts, court-mandated education expenditures, and unfunded federal mandates.
Governor Huckabee returned almost $400 million to Arkansas taxpayers. He believes it is immoral to take more money from taxpayers than is needed to run the government, and if a surplus occurs because of growth in the economy and good fiscal policy, it should be returned to the people.
He was the first Governor of Arkansas to pass a broad-based tax cut in the history of the state.
He also doubled the standard deduction to $2,000 for individuals and to $4,000 for married couples, as well as the childcare tax credit and eliminated the marriage penalty.
He eliminated the capital gains tax on the sale of a home.
He eliminated the state income tax for families below the poverty line.
He reduced the capital gains tax for businesses and individuals.
He indexed the income tax to protect people from paying higher taxes because of “bracket creep.”
Governor Huckabee left the state with almost a $1 billion surplus- a state record, setting the stage for further tax reductions. The “Huckabee Surplus” enabled his successor to follow Huckabee’s lead to begin the elimination of the state sales tax on food.
He urged that the surplus should go back to the taxpayers in the form of a rebate or tax cut.
He cut welfare rolls by almost 50 percent.
With respect to the tax and spending that he had under his control, spending rose about six-tenths of one percent a year during his ten-and-a-half year tenure.
Thank you for posting that!
More on Huckabee and taxes:
Sales Tax Hike (1996): Voters approved 1/8 cent sales tax increase to fund conservation and park services to preserve Arkansas natural and cultural heritage.
Gas and Diesel Fuel Tax Hike (1999): Arkansans supported a 3 cent per gallon fuel tax increase that allowed Arkansas to completely rehabilitate the interstate highway system, changing the interstate system from one of the worst in the country to the best according to Truckers Magazine.
Cigarette Tax Hike (2001): The cigarette tax increase of 25 cents per pack was used to fund state healthcare obligations. Arkansas tobacco taxes are still low, 33rd in the U. S.
Nursing Home Bed Tax (2001): The bed-tax on private nursing home patients was instituted to generate revenue for a nearly 3-to-1 match in federal Medicaid funds. Without this revenue low-income patients would not be able to find beds in nursing homes.
Grocery Tax: Huckabee opposed repeal (2002): This was actually a soft drink tax that Governor Huckabee opposed abolishing because it would drain $168 million from the state’s Medicaid budget.
Income Surcharge Tax (2003) – In 2003 there was a temporary increase in the income tax to offset the economic recession our country was facing in the aftermath of the terrorist attacks of September 11, 2001. They were needed for one year, and unlike most “temporary taxes,” Governor Huckabee made sure that the legislature kept its promise to the people that it was eliminated after two years.
Tobacco Tax Hike (2003) – This is the tax from the video clip that the Club for Growth uses in their attack ad. In 2003 the state’s chief financial officer projected a $62.3 million revenue shortfall that would result in cuts in state services, possible layoffs, tax increases or the possible repeal of late 1990s tax cuts. The Legislature was presented a series of options and chose to increase the tax on tobacco.
Taxes on Internet Access – Governor Huckabee has always been staunchly opposed to any tax on Internet access.
Beer Tax: Huckabee opposed letting the tax expire (2006) – The tax was used to fund programs for abused and neglected children. Without the tax there would be no funds for those programs.
Bullcrap. You're saying it's someone else's fault that Huckabee begged the Arkansan Legislature to raise taxes. You wouldn't accept that for any other candidate. We'll put you down in the "irrational Huckabee supporter" camp. You neglected to mention his expansion of ArKids was huge (not court mandated). And when Huckabee had the chance to eliminate the state sales tax on food, he said "no." Then when the Democrat governor following him did eliminate the tax, Huckabee TOOK CREDIT FOR IT. DESPITE OPPOSING IT WHILE HE WAS GOVERNOR. You're either a shill or a naive Christian or both.