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Arkansas Private Option Funding Vote Fails Again

Fri, 21 Feb 2014 14:39:33 -0500

Day four of the legislative fight over funding Medicaid Expansion via the “Private Option” in Arkansas saw House Speaker Davy Carter call another vote – and for the fourth time in a row, the House of Representatives failed to gain the 75 votes it needs to pass the appropriation.

Armed with a flawed and biased study from the Arkansas Chamber of Commerce and tax preparation firm Jackson-Hewitt, Speaker Carter and Private Option proponents have repeatedly forced votes in an attempt to badger legislators into accepting a massive and unaffordable expansion of the entitlement program. Writing in the Arkansas Democrat-Gazette and The Federalist, I have repeatedly pointed out serious issues with the metrics of the Jackson-Hewitt study – including the base assumption that without Medicaid Expansion, no Arkansas businesses will cover employees falling into Obamacare’s Medicaid gap:

In defense of the Private Option, the Arkansas Chamber of Commerce released a study by the tax-prep firm Jackson-Hewitt claiming that without Medicaid Expansion, Arkansas businesses would see a tax increase between $27 and $40 million. Already, the study has been exposed as little more than fear mongering.

First, the base assumption of the study is that no employer in the state would provide insurance coverage to an employee who would qualify for Medicaid if expansion were to occur – yes, it assumes zero, zilch, none. That is a wildly irresponsible assumption. Why not assume that businesses would cover 100 percent of qualifying employees?

Even more troubling is this post from the Advance Arkansas Institute noting the detrimental impact the Private Option will have on Arkansas hospitals.

During today’s vote, a legislator fled the House floor, prompting Speaker Carter to call on the State Police to find and return the lawmaker to the legislative chamber – the move prompted some observers to note that the move was akin to Kevin Spacey’s character, Frank Underwood, on the television show House of Cards. Perhaps the better comparison is with a Dread Pirate. It has become apparent that Speaker Carter will continue to force votes until the 75 “yea” votes needed materialize – a strategy akin to saying, “The floggings will continue until morale improves.” Dread Pirate Davy Carter, maybe that moniker will stick. When “no” vote lawmakers are summoned to the Speakers Office they may feel like they are being summoned to Dread Pirate Davy Carter’s “locker.”

At this juncture, the battle over the Arkansas Private Option continues and it appears that tomorrow there will be yet again another vote (number 5 in the House) on funding the unaffordable entitlement expansion.

ATR Urges Illinois Lawmakers to Vote No on the Soda Tax

Wed, 19 Feb 2014 11:23:00 -0500

Americans for Tax Reform issued a letter today to the Illinois State Senate opposing a new tax on soda being pushed by Democrat Senator Mattie Hunter. Senate Bill 3524 imposes a "rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Provides that the distributor shall add the amount of the tax to the price of sugar-sweetened beverages sold to a retailer, and the retailer shall pass the amount of the tax through to the consumer."

In the letter, ATR's president Grover Norquist noted:

Aside from the negative economic impact associated with raising taxes, soda taxes do not help to decrease obesity or caloric intake. The non-partisan Tax Foundation released a study which found that “soda and candy taxes do not necessarily decrease caloric intake. One recent study finds that when adolescents switch away from soda due to price increases, the drop in calories is offset by an increase in calories consumed in other food and drink.

To read the full letter, click here.

Another Frack Tax in Ohio?

Tue, 07 Jan 2014 13:08:09 -0500

The 2014 Ohio General Assembly will be faced with a new tax on oil and natural gas extraction in the state in the form of H.B. 375, or some version of it. The bill, introduced by Rep. Matt Huffman (R – 4^th District), would create a new and separate severance tax on horizontal wells as opposed to vertical wells. This new tax legislation, it is hoped, will generate new revenues for the Department of Natural Resources and for plans to continue to reduce the state income tax burden.

In the past, industry groups in Ohio have been sympathetic to state regulation and taxation of the oil and gas industry in order to avoid greater federal EPA intervention. H.B. 375 should raise alarm bells for Ohio taxpayer advocates and those who want to see increased natural gas production and competition with neighboring states like Pennsylvania.

The current language of H.B. 375 would enact a 1-percent gross proceeds tax on each horizontal well that, after a period of time, would then jump to 2-percent. The rate would then drop back to 1-percent as well production declines. H.B. 375 does make an honest attempt to address a concern that was raised during the last legislative session, that many of the entities that would pay the new severance tax aren’t the well operators but the land-owners (many of whom are Ohio farmers). A series of income tax credits are created in H.B. 375 with the aim to make the land-owners liable for the severance tax whole.

What the overall revenue impact of H.B 375 is remains to be seen. The legislation is due for an initial committee hearing this Wednesday and a fiscal note should follow. Americans for Tax Reform urges lawmakers who have signed the Taxpayer Protection Pledge to be mindful of what is shaping up to be a tax hike. While robbing Peter to pay Paul is never a sound policy, if Ohio lawmakers do move forward with H.B. 375, it would behoove them to ensure the legislation is revenue neutral by offsetting the tax increase with revenue equivalent rate reductions in the Ohio personal income tax.

Republican Governor Tax Cuts Since 2011

Thu, 02 Jan 2014 12:35:00 -0500

Writing in Forbes, ATR's Patrick Gleason notes it will be governors’ races that tell the tale of a GOP revival in 2014. It has been on the state level that the GOP has been able to enact transformative and pro-growth reforms. Since the Republican election wave in 2010, 19 GOP governors have reduced taxes in their state, amounting to a net $38.33 billion in total tax relief. On the other hand, Democrat governors have increased the tax burden in their states by $43 billion.

Americans for Tax Reform has produced a full breakdown of tax relief legislation passed by 19 Republican governors. Click here to view a pdf of the breakdown.

Taxpayers Win Big in Kansas City, Missouri

Wed, 06 Nov 2013 15:47:58 -0500

ATR Calls on Missouri Legislature to Override Gov. Nixon’s Veto of HB 253

Wed, 04 Sep 2013 13:37:00 -0400

Today Americans for Tax Reform issued a letter to members of the Missouri House of Representatives calling on them override Gov. Jay Nixon’s veto of HB 253, legislation that would begin the process of reforming Missouri’s tax code. With neighboring states like Kansas and Oklahoma moving towards lower, more competitive tax rates, lawmakers in Jefferson City must begin their own process of reform to keep Missouri economically competitive and encourage job creation.

On behalf of Americans for Tax Reform (ATR) and our members across Missouri, I write today in support of HB 253 and urge you to OVERRIDE Gov. Nixon’s veto of this important piece of legislation. HB 253 would represent a significant reduction of the tax burden on Missouri businesses and families. Currently, Missouri’s tax climate is a hindrance to economic growth and job creation. HB 253 would take important steps towards keeping Missouri competitive with her neighbors, many of whom have enacted large tax cuts in the past several legislative sessions.

Presently, the corporate income tax rate that businesses in Missouri face is 6.25%. HB 253 would nearly cut this in half over a ten year period, reducing it to 3.25%. In addition, the top individual rate would be brought down to 5.5% over the same ten year window. Under HB 253, these measures are only to be implemented if the state is collecting revenues that rise by $100 million or more annually. Contrary to claims, HB 253 takes tax cuts from future growth in state revenue, and returns it to businesses and hard-working taxpayers.

HB 253 represents not only an important step forward for the Show-me-state, but also a very critical move in order to remain economically relevant in an increasingly competitive region. Neighboring states such as Kansas and Oklahoma have significantly reduced the tax burden on businesses and taxpayers. Iowa, Nebraska and Indiana have enacted tax cuts as well, and many of them are just getting started. In order to stay on pace with her neighbors, Missouri must allow businesses to keep more capital so that they may invest further and create jobs. Taxpayers, too, would be accorded more take home pay under HB 253.

ATR urges you to support HB 253 and override Gov. Nixon’s veto. Legislators in Jefferson City should continue to focus on policies that allow the private sector to grow and create jobs; reducing the tax burden that they face is an excellent way to do so. ATR will be following this issue closely and educating your constituents as to how their legislators in the House of Representatives vote on this important matter.

You can read the full letter here.

Virginia Governor Bob McDonnell’s Transportation Tax Hike Takes Effect Today

Mon, 01 Jul 2013 17:31:06 -0400