2011 Legislative Preview: HB 1002

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With so many pre-filed bills, we thought it might be a good idea to look at each of them prior to the start of the legislative session, discuss what each bill is designed to do and how it will help/hurt average Arkansans, and take an official position on each proposed measure.  (Official positions are: strongly support; support with recommendations; oppose as written, but with recommendations; oppose as unnecessary; strongly oppose as bad policy.)

Up first, one we’ve covered to death already: HB 1002.

Bill Name: An Act To Create The Capital Gains Reduction Act of 2011

Sponsor: Ed Garner (R-41), 501-663-7880, ed.garner@arkansashouse.org

Purpose: To remove the 4.9% tax on new capital investments in Arkansas.

Pros for Average Arkansans: None.  Unless you consider people like the Stephenses and the Waltons “average.”

Cons for Average Arkansans: Costs over $100M over the first two years alone, which will have to be made up somewhere, even if that means cutting some social services to certain groups; places a higher percentage of the tax burden on lower-income Arkansans; job creation is almost non-existent.

Official BHR Position: Strongly oppose as bad policy