Why would a state House tax committee vote to give up money? The simple answer is probably: It wouldn't. And won't when it comes down to it.
For some reason known only to certain politicians, the state House's tax committee balked earlier this week on legislation that would require out-of-state companies to collect taxes on their online sales to folks in this state, and send that sales tax to the government.
A tax committee. Balking to collect legal taxes. And millions of dollars in taxes, at that.
It might not be too hard to get your head wrapped around that if we just remember that birds gotta fly and politicians gotta make deals.
The article in the newspaper said that Democrats wanted to first earmark the new money. For government programs, of course. You got your police and and rural fire department grants, your after-school grants, the occasional pre-K program, etc., etc. The Republicans didn't want these earmarks--although some of us believe any new money surely would help pay for the tax cuts the Ledge has already approved.
And if there's money left over, why, there's always that idea to suspend income taxes on newcomers to this state for five years, and make Arkansas even more attractive to retirees and young couples and everybody in-between. And improve the growth rate in this state that appears more like a stagnant rate.
We're going to put our faith in our betters at the Arkansas General Assembly, and trust they'll eventually compromise on the tax bill. And collect taxes from online companies.
Because to keep up this standoff, and possibly lose millions until the next regular session, makes very little sense.
Editorial on 02/16/2017