Tax-cut friction heats governor debate

Republican candidate for governor Asa Hutchinson (left) and Democratic candidate Mike Ross (right) participate Friday in a debate moderated by Capitol View host David Goins (second from left) and KARK-TV, Channel 4 news anchor Bob Clausen.
Republican candidate for governor Asa Hutchinson (left) and Democratic candidate Mike Ross (right) participate Friday in a debate moderated by Capitol View host David Goins (second from left) and KARK-TV, Channel 4 news anchor Bob Clausen.

Gubernatorial candidates Mike Ross and Asa Hutchinson jousted Friday night about their tax-cut plans, their records in Congress and negative campaign ads during a debate that Hutchinson called "a little heated."

During the first statewide televised debate of the campaign, Hutchinson said his proposed $100 million income-tax cut would benefit "the heart and soul of Arkansas" by cutting the state's income-tax rate from 7 percent to 6 percent for individuals earning between $34,000 and $75,000, and from 6 percent to 5 percent on those earning between $20,400 and $34,000.

"I think the defining question in this race is who can do best to really help the middle class and this is a way to do it," Hutchinson said during the debate in the KARK-TV, Channel 4 studio in Little Rock.

"If you want to promise something to everybody, Mr. Ross has a $565 million tax plan [for overhauling the state's income tax brackets]," he said.

But Ross said he "never thought I would see the day that a Republican candidate, Congressman Hutchinson here, would criticize me for wanting to cut people's taxes too much.

"My tax-cut plan is ... we are going to balance the budget first and fund education, Medicaid and public safety and then as we have revenue growth -- and we always do -- we are going to implement my plan for lower and fair taxes," Ross said.

Ross said Hutchinson "has promised every voter in this state that he will cut taxes $100 million in his first year in office when the Department of Finance [and Administration] will tell you that at best we are going to have a $50 million net revenue growth.

"That leaves a $50 million deficit," he said. "That's the Kansas model. Record deficits, a credit rating downgraded."

But Hutchinson said the state's tax revenue grows by about $200 million a year, and his proposed $100 million tax cut would go into effect, starting July 1, 2015, so "it's really manageable."

"Mr. Ross has promised something to everyone, " Hutchinson said, and he asked Ross what tax cuts he would propose to the 2015 Legislature and how much the tax cuts would cost.

"I think we owe it to the voters of Arkansas to be specific, particularly when we talk about the middle class," Hutchinson said.

In addition to proposing phasing in an overhaul of the state's income-tax brackets, Ross has proposed slashing certain sales taxes paid by manufacturers at a cost of about $40 million a year and eliminating income taxes on military retirement benefits at a cost of at least $17 million a year. He also wants to expand the state's pre-kindergarten program at a cost of $37 million a year.

"I think we can do some of all that," Ross said when a moderator of the debate pressed him on his top priority.

"Those are my priorities and we are going to do them as we have revenue growth."

Hutchinson said he supports adequately funding the pre-kindergarten program and targeting it to those who need it the most.

But Ross said Hutchinson voted against pre-kindergarten in Congress, called Ross' proposed expansion of the state's program "the wrong direction for Arkansas" and now says he's for expanding access to the program.

"I get confused," Ross said. "Is this the Washington Asa or is this the Arkansas Asa? I wish the real Asa Hutchinson would stand up."

In response, Hutchinson said Ross "spent 12 years in Washington in Congress ... and he voted for [U.S. House Democratic leader] Nancy Pelosi for speaker four times and he voted against her twice."

That prompted Ross to declare, "Now wait a minute. The only time Nancy Pelosi had an opponent, I gave the nominating speech for her opponent with her sitting in the front row."

Hutchinson later countered, "Don't be so defensive about the flip-flopping on Nancy Pelosi. Those are just the facts, Mike."

Asked about the television ads in the governor's race, Hutchinson said voters want positive messages and he's "very disappointed whenever I think the negative ads just turn our voters off."

But Ross said Hutchinson "and his wealthy out-of-state friends" are spending millions of dollars "trying to convince you I am something that I am not, misrepresenting the facts, distorting the truth, lying about me and my record.

"I have really been disappointed with that," he said.

Hutchinson said his campaign's own TV ads have been positive, and Ross is referring to an ad from "an out-of-state group that we have no control over," and Ross has attacked Hutchinson's character in one of Ross' television ads.

Ross replied: "Now wait a minute, Asa wants to say poor me and look, he says he can't control the ads being run by the Republican Governors Association unfairly and untruthfully attacking me" for the sale of the Ross family's pharmacy in 2007 to USA Drug.

He said his wife sold the family's pharmacy business "for a profit in America," and the Republican Governors Association started airing a television ad criticizing the sale of the business when the association's chairman, New Jersey Gov. Chris Christie, was in Arkansas raising money for Hutchinson's campaign.

Hutchinson "could have said this ad is not fair," but he's declined to do, although the U.S. House Ethics Committee reviewed the transaction and concluded there was no wrongdoing, Ross said.

"I think he owes my wife an apology right here," he said.

In turn, Hutchinson asked Ross whether he controls the Democratic Governors Association's ads attacking Hutchinson.

"You know better than that," Hutchinson told Ross. "Of course, I have no control over that. It is illegal to coordinate those and I don't know anything about the facts of the sale of the pharmacy. ... I have never ever attacked you on that issue."

Hutchinson of Rogers is a former 3rd District congressman, undersecretary of the federal Department of Homeland Security and director of the U.S. Drug Enforcement Administration.

Ross is a former 4th District congressman, state senator and Nevada County Quorum Court member.

They are vying to succeed Democratic Gov. Mike Beebe in the Nov. 4 general election. Beebe is barred from seeking re-election by the state's term limits amendment.

Green Party nominee Joshua Drake of Hot Spring and Libertarian nominee Frank Gilbert of Tull also are running for governor. They were not part of the debate.

A section on 09/20/2014

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