OPINION — Editorial

Found money

It’s just waiting to be picked up

It's been years now since it was estimated that the state of Arkansas--that's We the People--could collect $30 million to $100 million or more by collecting sales taxes due on purchases from out-of-state companies via the Internet. What's more, one of those companies--Amazon--is already gearing up to collect some of this state's sales taxes beginning in March. What are our legislators waiting for?

Lord knows there are more than enough crying needs to be met here in Arkansas, as the leader of the Democrats in the House--John Gray of Augusta--was quick to point out. He would specify that $25 million of the proceeds from these now uncollected taxes would be spent on a variety of causes. Like rural fire and police protection, pre-kindergarten education, after-school activities, and the state's Medicaid program. Of course, more conservative types in the Ledge weren't interested in earmarking anything yet. Maybe the better to pay for tax cuts already approved.

But there's at least one thing on which everybody should be able to agree: Leaving this kind of money on the table while Arkansas is trying to balance the books and the growth rate here is negligible is madness, madness. Whether to earmark is a legit question. Whether to walk away and let these (legal) taxes go uncollected until the next legislative session isn't legit at all. It's irresponsible.

Here in Arkansas, only the biggest out-of-state businesses would be affected by this proposed law--those with a gross revenue of more than $100,000 a year from this state, or who have sold their goods and/or services in Arkansas through at least 200 separate transactions over the past year. These aren't pauper companies that some of our legislators are proposing to burden with more taxes. These companies can afford to pay their taxes just as the rest of us do. And it's all constitutionally kosher according to the law of the land as laid down the Supreme Court of the United States.

The legal foundation for collecting this state's sales taxes on out-of-state companies is solid. As long as one of these out-of-state behemoths has a foothold in Arkansas, it can be required to collect Arkansas taxes. Fair enough, legal enough. And the good taxpaying voters and citizens of this state have been kept waiting long enough for a little help from those outfits that have made a fortune off their customers here in the Wonder State and who can definitely use the money. So thank you, hurry back and don't be a stranger. See you next time, partner. Because a partner is what you've made yourself when you share in the profits. If that's the case, and it is, how about putting something in the kitty?

So long as business is good and getting better, partners in any enterprise aren't likely to have a falling-out. At the moment, all is coming up daffodils for all concerned in Arkansas. Why spoil a good deal? And miss a fine opportunity in this land of opportunity, as this state's license plates used to proclaim and still could?

This is a state on the grow. Why neglect any opportunity to keep it growing? Especially an opportunity that has fallen into our laps. And needs to be seized upon. This state wasn't built by folks who didn't know an opportunity when they saw one. And this one is unmistakable. For there's no need to pass a new tax to take advantage of this opportunity, but just to collect the one that's already on the books.

cc: The state House of Representatives, specifically the Revenue and Taxation Committee.

Editorial on 02/20/2017

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