Editorial

EDITORIAL: The push is on

A couple of taxing questions

Turns out there's an official group now pushing the quarter-percent sales tax in Pulaski County, the one that would grow the transit system. And another group opposing it. Good for them! What a country, what a democracy, and what would the rest of us do without these community leaders? May their tribe increase.

But a tax increase? For the bus system? The group pushing such a thing needs to answer more questions. And from what we saw in the paper the other day, these particular community leaders are only raising more of them.

For example, this from developer Jimmy Moses, who's a member of the Rock Region Metro board, and sounds like he's full of good intentions, too: "Three million people use our transit system every year to go to work, to play, to health care, to school and many other trips back and forth. What would the city be without that? It would be a lot less, I think."

Yes, but is anybody suggesting shutting down the bus system? Not that we can see. A lot of people use buses, sure. The question is whether enough people use them that the bus system should be expanded.

Rock Region Metro gets contributions from cities and the county to the tune of $12.5 million a year. This tax would raise $18 million. Is the bus system so overwhelmed that it needs an increase like that? From what we've seen on a daily basis in both downtowns of Little Rock and North Little Rock, the buses aren't exactly overflowing with people.

According to the papers, supporters say the system would put in Platform Stations that would serve as "magnets for economic development." Somebody is going to have to explain how. Or is that just the fall-back for anybody pushing an increase in taxes these days? Economic development!

Ever-present consultants say the expanded bus system would boost ridership by 40 percent. And supporters say more riders would take the buses if there were more buses and stops available. So, if we build it they will come?

And here's yet another question: If this tax increase is so much of a need, then why not put it before the people when more voters are likely to turn out? That is, in November. The March 1 primary sorta tucks it away, don't you think?

Sales taxes disproportionately hurt the poor, who disproportionately ride buses to work. Does anybody pushing this tax see the irony?

In Little Rock, the sales tax is already 9 percent on goods and services. Yes, 9 percent. Go to Wal-Mart, buy a pair of jeans, and you have to kick in an extra 9 percent. That breaks down to 6.5 percent for the state, 1 percent for Pulaski County and 1.5 percent for the city.

Go out to eat or stay at a hotel and it's more--2 percent more.

It wasn't all that long ago that the Tax Foundation in Washington, D.C., ranked Arkansas No. 2 in its collection of sales taxes when compared to the other 49 states. We were just behind Tennessee. The list showed that the average Arkie paid almost 9.2 percent in sales taxes, depending on where he lived.

If taxes must be raised, aren't there more important things that local and state governments could spend the money on? Such as jails and prisons? Improving downtown streets in both cities? Is expanding the bus system really a priority?

The bottom line is that Arkansas has increased its sales taxes over the years numerous times for education, for highways, cities, counties, you name it. And as a result, our sales taxes are now among the highest in the country.

There are too many questions about this tax proposal. And not near enough answers.

Editorial on 01/25/2016

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