ARRA News Service
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. Content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for or by this site - no paid ads - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: editor@arranewsservice.com (Pub. Since July, 2006)
    Home Page
   

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Friday, December 19, 2014

New Day In Arkansas: Fiscal Policy Recommendations For Arkansas

On Tuesday, January 13, 2015, Arkansans will celebrate "A New Day in Arkansas" when Republican Asa Hutchinson is sworn in as Governor and Republicans are sworn for "every" Constitutional Office in Arkansas. In addition, the Republicans will be in greater control and thus have more responsibility in both chambers of the legislature. When Arkansans voted they also had expectations.  They were and are looking forward to positive changes in how things are done across the board by state government. In addition to expecting a rollback in taxation and in government control of people's lives, Arkansans want "a wall of separation" maintained by their state to protect them from the excessive programs of various Federal agencies both now and into the future. The below article by the Arkansas Policy Foundation suggests "fiscal policy recommendations." However, this is only a beginning of many recommendations that the people of Arkansas have for prudent policies for our new administration. One of the greatest things this new administration can do is to lead in manner which believes in and supports the core values and decency of the majority of Arkansans. ~ Dr. Bill Smith, Editor
----------------------

Greg Kaza, executive director,
Arkansas Policy Foundation, an
economic think tank in Little Rock
.
by Greg Kaza, Arkansas Policy Foundation: Prudence should guide fiscal policy. Public services should be provided in an efficient, cost-effective manner. Savings should be used to encourage economic growth and make Arkansas competitive in terms of jobs creation and income growth. The Murphy Commission, a Policy Foundation project spent three years (1996-1998) studying state government before advancing ideas to make government cost-effective and accountable to taxpayers. Several ideas have advanced, including a performance-based budgeting pilot, and income and capital gains tax cuts. But more needs to be done.

Declare a Jobs Emergency
Incoming Gov. Asa Hutchinson inherits a weak labor market. Nonfarm payroll employment is the broadest state level indicator. Total Arkansas NPE was 1,201,200 (January 2007) and 1,195,300 (October 2014). U.S. employment increased 1.3% in the same period, U.S. Bureau of Labor Statistics data show. Governors have little influence over some policies1 that affect jobs. But they can lead in areas such as tax policy and regulation.

Continue Reducing the Capital Gains Tax
Some policymakers have recognized for 15 years that Arkansas fiscal policy discourages capital investment. After the Murphy Commission, the 82nd General Assembly (1999) approved a measure by state Sen. Jim Hill, D-Nashville, to exempt thirty percent (30%) of a capital gain from the state income tax. The Fluor GLS report, commissioned by the Assembly, also noted Arkansas' competitive disadvantage. The 89th Assembly cut another twenty percent (20%). The tax (3.5%) should be phased-out over a decade so Arkansas can compete against low-tax states with higher jobs creation.

Reduce the Income Tax Rate
Arkansas has the highest income tax rates of any border state.2 Mr. Hutchinson has proposed a middle-class tax cut, lowering the top rate from seven (7%) to six (6%) for those earning between $34,000 and $75,000.3 The proposal, advanced as an idea to spur jobs creation has greater potential to grow income. Arkansas per capita personal income increased from 78.4% (2007) to 82% (2013) of the U.S. after the grocery tax was cut. PCPI stagnated between 75.4% (1983) and 77.4% (2006) of the U.S. after sales tax and spending increases that failed to deliver much income growth.

An overlooked factor is the state of the business cycle. Arkansas general revenues tend to expand in national expansions and contract below trend in recessions, with a lag. Use of a trigger mechanism that reduces or freezes tax cuts in recessions, while funding vital services, is prudent public policy.

Dynamic Analysis
Dynamic analysis is an attempt to measure the full impact of tax proposals, on revenue estimates. It can also provide legislators with more information when considering proposals. One example is the 2008 severance tax increase: the static analysis failed to consider a decline in natural gas prices.

Activities-Based Costing and Performance-Based Budgeting
Activities Based Costing should be linked to the state's accounting system with spending tied to costs and measurable performance outputs. Performance-based budgeting, discontinued after a 1999 pilot program should be reconsidered. Mr. Hutchinson should name a performance director and volunteer advisory group for oversight purposes. ABC can be a vital management tool if tied to performance outputs and reporting to Arkansans. State constitutional offices would benefit from these reforms.

Deregulate Policies That Harm The Poor, Reevaluate Quick Action Fund
Poor and low-income households should not be punished by laws that prevent gainful employment. One example are restrictions on hair braiders. The $50 million Quick Action Closing Fund, by contrast, serves the politically-connected and trails the U.S. since its inception.4 The guiding policy should be low rates for all businesses, not taxpayer-funded privileges.

1 Arkansas and U.S. data seasonally adjusted.
2 Governors can praise or question International trade and monetary policies but they cannot lead in these areas.
3 State Individual Income Taxes (rates for 2014, as of January 1, 2014): Arkansas (7%); Louisiana and Missouri (6%); Oklahoma (5.25%); Mississippi (5%); Tennessee (dividends and interest only); Texas (no tax). Federation of State Tax Administrators.
4 Gov.-Elect Hutchinson has also proposed cutting the 6% rate to 5% for those earning between $20,400 and $33,999 annually.
5 Payroll employment: (Arkansas) 1,202,000 (July 2007) to 1,194,000 (September 2014); U.S. 137,984,000 to 139,466,000.

Tags: Arkansas, Fiscal Policy Recommendations, New administration, Governor Asa Hutchinson, Greg Kaza, Arkansas Policy Foundation, Bill Smith, expectations, New Day in Arkansas, wall of separation,  To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 8:10 AM - Post Link

0 Comments:

Post a Comment

<< Home


View U.S. National Debt

Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You will receive a verification email
& must validate you subscribed!

You Then Receive One Email Each AM
With Prior Days Articles / Toons / More


Also, Join us at:
Facebook.com/ARRANewsService


Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru - @arra
#Christian Conservative; Retired USAF & Grad Professor. Constitution NRA ProLife schoolchoice fairtax - Editor ARRA NEWS SERVICE. THANKS FOR FOLLOWING!

Action Links!
State Upper & Lower House Members
State Attorney Generals
State Governors
The White House
US House of Representatives
US Senators
GrassFire
NumbersUSA
Ballotpedia

Facebook Accts - Dr. Bill Smith
Pages:
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire 4 Life
Republican Liberty Caucus of Arkansas
The Gold Standard
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.

Patriots
Exchange
Links

Request Via
Article Comment

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
ARRA News Twitter
As The Crackerhead Crumbles
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Common Cents
Conservative Voices
Defeat Obama's Agenda
Diana's Corner
Greater Fitchburg For Life
Lasting Liberty Blog
Liberal Isn't Amy
Maggie's Notebook
Marathon Pundit
Patriot's Corner
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sultan Knish
The Blue Eye View
The Born Again Americans
TEA Party Cartoons
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
The War on Guns
TOTUS
Twitter @ARRA
Underground Notes
Warning Signs
Women's Prayer & Action
WyBlog

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
Accuracy in Media (AIM)
American Action Forum (AAF)
American Committment
American Culture & Faith Institute
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
CATO Institute
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Declaration of Am. Renewal
Eagle Forum
FairTax
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Freedom Works
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Heritage Action for America
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Intercollegiate Studies Institute
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
OathKeepers
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Truth in Accounting
Union Facts



Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer


Thousands of Deadly Islamic Terror Attacks Since 9/11


FairTax Nation on FaceBook
Friends of Israel - Stand with Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to The Free Dictionary

Powered by Blogger


  • To Exchange Links - Email: editor@arranewsservice.com!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting beliefs associated with the former Arkansas Republican Assemblies (ARRA), this blog/site is controlled and supported by the editor. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2018 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.