Monday, June 17, 2024

Econ 101: AACF On Capital Gains

Lest you think that Blue Hog Report is the only entity vehemently opposed to Ed Garner’s prefiled HB 1002, Arkansas Advocates for Children and Family offers its take on the bill:

Cutting Arkansas’ already generous capital gains taxes would benefit only the super wealthy, with three quarters of the tax break going to the top 1 percent of taxpayers, according to an analysis by Arkansas Advocates for Children and Families.

Taxpayers making more than $352,000 a year would pay on average $7,142 less per year in taxes if capital gains taxes were eliminated in Arkansas. That compares to a tax break of $2 per year for middle-income workers.

(emphasis added).  Even more starkly:

Under House Bill 1002, the top 1 percent of taxpayers would see an average tax cut of $4,220 a year. Middle class taxpayer would receive an average tax break of just $1 per year, showing how dramatically cutting capital gains benefits the super wealthy (see chart below). In Arkansas, the top 1 percent of wage earners includes just 13,000 tax filings.

The entire article and the accompanying report are definitely worth a read by everyone who is still even considering supporting this bill.

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