Op-Ed: Rep. Hodges explains vote of ‘no’ on tax cut

Editor’s Note: State Rep. Monte Hodges (D-Blytheville) penned the following article on the Arkansas House passing the largest income tax cut in the history of Arkansas.

By REP. MONTE HODGES

The Governor called a special session to consider a reduction in income taxes. I’m all for lower taxes, but I voted against his bill because I believe it doesn’t help the economy and it doesn’t improve the quality of life for the majority of the people of the state of Arkansas or the people I represent in my district.

If you do not know about the bill, it calls for a 1 percent reduction for the top income tax bracket over the next few years, combines low- and middle-income tax tables, and creates a $60 tax credit for people making under $24,700 a year.

Arkansas currently has a budget surplus of $1 billion. It is projected that we’ll lose $600 million of this surplus due to these cuts. This is money we cannot afford to waste right now, but they insist on doing so.

There are loads of things in my opinion that we can fund right now that will make many of our lives much better. For example, it would cost just $182 million to make 2 year college tuition free for all Arkansans. $100 million would create 1,000 new pre-k classrooms. $37 million is all we need to take 3,000 Arkansans off the Developmental Disabilities waitlist. If you got on that list today, you would have to wait about ten years before you receive care.

Further, when so many schools are struggling to maintain basic educational requirements, and much of our infrastructure is crumbling, it is baffling to me that we would even consider a top level income tax reduction at this time.

The Governor and other Republicans are arguing that the reduction in the top bracket will make Arkansas “more competitive” for new business compared to other states. In my experience, businesses in this day and age look at a lot more than tax rates when looking to expand or relocate. They look for communities that are safe, that have quality schools, sound infrastructure, and high quality of life such as an inviting entertainment cultures. Tax rates are just a small piece of the puzzle.

Who cares if we have a slightly lower tax rate if our roads are undrivable (Highway 55 or Bassett overpass in Mississippi County) and our schools are understaffed and are not competitive on the National or global stage?

They are also touting a low income tax credit of $60. This is insulting when people have so much need. $60 doesn’t cover a week’s groceries. It is one tank of gas. Frankly, it is an attempt to distract people from the fact that the vast majority of this tax cut is going to the top earners in this state.

Republicans say that the cuts to the top earners will be reinvested back into our economy, but there is NO evidence to back this up. In reality, we will see a lot of this money invested in out of state corporations or simply deposited in accounts.

I am no economist, but there are ways to do economic development right. We could have spent that $600 incentivizing local Arkansas businesses to create jobs and boost the economy. I co-sponsored a bill this session that will create a tax credit to incentivize Steel companies to create new jobs. This is what good economic development looks like, rewarding companies and small businesses that help to build our communities.

This bill does not help working people, it will not help economic development, and it is a complete waste of our $1 billion surplus. That is why I voted no. We need to start doing things that help ALL Arkansans.