Does anybody know Huckabee’s record as Governor of Arkansas in terms of his views on fiscal conservatism and tobacco?

technopeasant on December 5, 2008 at 8:30 PM

One of the things that is most often reported inaccurately is Governor Huckabee’s tax record. There will always be groups like The Club for Growth, and Cato Institute who will never be satisfied, and who will continue to attack Governor Huckabee.

These groups like to oversimplify an issue, and while Governor, Mike Huckabee learned that many issues were not cut and dried. State government’s job is to provide prisons and state police for public safety, good roads for transportation and public education.

As Governor, that is what he did while being responsible with the revenue and state budget. Keeping the state budget balanced and spending as low as possible wasn’t easy because he also had to deal with a state legislature that had the largest percentage of Democrats of any in the country as well as court mandates from judges who think spending more and more tax dollars is the only solution to any problem.

Tax Cuts

Mike Huckabee is a fiscal conservative who cut taxes almost 100 times in the state of Arkansas.
Mike Huckabee returned almost $400 million to Arkansas taxpayers. He believes it is immoral to take more money from taxpayers than is needed to run the government, and if a surplus occurs because of growth in the economy and good fiscal policy, it should be returned to the people.

He was the first Governor of Arkansas to pass a broad-based tax cut in the history of the state.

He also doubled the standard deduction to $2,000 for individuals and to $4,000 for married couples, as well as the child care tax credit and eliminated the marriage penalty.

He eliminated the capital gains tax on the sale of a home.

He eliminated the state income tax for families below the poverty line.

He reduced the capital gains tax for businesses and individuals.

He indexed the income tax to protect people from paying higher taxes because of “bracket creep.”

Governor Huckabee left the state with almost a $1 billion surplus- a state record, setting the stage for further tax reductions. The “Huckabee Surplus” enabled his successor to follow Huckabee’s lead to begin the elimination of the state sales tax on food.

He urged that the surplus should go back to the taxpayers in the form of a rebate or tax cut.

He cut welfare rolls by almost 50 percent.

With respect to the tax and spending that he had under his control, spending rose about six-tenths of one percent a year during his ten-and-a-half year tenure.

Governor Huckabee established the Murphy Commission by Executive Order (his first as governor) to streamline government to save taxpayers’ dollars and make government more efficient.

Governor Huckabee also led efforts to establish a Taxpayers’ Bill of Rights and a Property Taxpayers’ Bill of Rights, which established a uniform notice and due process procedure guaranteeing all Arkansans they will be treated fairly in the assessment of property taxes.

Tax Increases and answers as to why:

Governor Huckabee worked hard to ensure that any tax increase we needed were supported and approved by Arkansans. We were not going to have a case of the Legislature imposing general tax increases on the people behind closed doors.

He made sure any tax increase was targeted, time-limited, and addressed specific state needs. Huckabee has been outspoken in saying that a significant portion of almost $1 billion in state surplus should go back to the taxpayers. He has always believed that a tax refund or reduction makes more sense than a government spending spree.

In 1996 voters approved an increase in the sales tax to support conservation which was a wonderful investment in Arkansas. 1/8 cent sales tax increase approved by voters to fund conservation and park services to preserve Arkansas natural and cultural heritage.

In 1999, Arkansans supported a fuel tax increase that allowed Arkansas to completely rehabilitate the interstate highway system, changing the interstate system from one of the worst in the country to the best according to Truckers Magazine. The $1 billion project was completed on budget and on time. The legislature passed the gas tax, but it wouldn’t be implemented unless the people voted on, and approved, the bond issue; which was passed by an 80% vote of the people in 1999.

In 2001, a sales tax increase offset revenue lost from constitutional amendment cutting property taxes by $180 million. The sales tax increase and property tax cut were voted on by citizens of Arkansas – they chose how to be taxed.

In 2003, a cigarette tax increase of 25 cents per pack funded state healthcare obligations. Arkansas tobacco taxes are still low, 33rd in the U. S.

In 2003, there was a temporary increase in the income tax to offset the economic recession our country was facing in the aftermath of the terrorist attacks of September 11, 2001. They were needed for one year, and unlike most “temporary taxes,” Governor Huckabee made sure that the legislature kept its promise to the people that it was eliminated after two years.

In 2003, Arkansas had a $110 million hole in the state budget that had to be addressed aggressively. Medicaid, education, and prisons were the main areas that needed funding to keep them operating. Those three services took up to 91 percent of the general revenue fund. Arkansas didn’t have the revenue coming in that was needed to meet the expenses going out and it got to the point where we didn’t have the money to meet basic obligations to the state.

In 2004, he allowed a 7/8 cent sales tax increase to become law without his signature to comply with a Supreme Court order to increase funding for education, which avoided the courts taking over public education in Arkansas. Mike Huckabee was the first governor in state history to oppose a tax increase. He had already cut state budget by 11%.

SPENDING

Club for Growth says that state spending in Arkansas increased 49% during Governor’s ten-year tenure. THIS MUST BE PUT IN CONTEXT – a 49% increase is in line with a 46% increase in aggregate state spending over same time period. It’s still much lower than the 70% increase in federal spending for that period.

The Governor didn’t control higher education spending as that is controlled by the trustees of each institution. Those who want to distort Governor Huckabee’s record of tax and spending includes those in higher education to further their own goals.

Arkansas ranks 43rd so far this decade in spending as a percentage of personal income – this is a fairer judge of spending given disparity between poorer and richer states.

States have to increase spending every year by at least 5-6% just to keep up with rising costs of healthcare, education, and other services.

Spending that Governor controlled, not federal pass-throughs and programs controlled by the Democrat legislature, rose only about six-tenths of one percent a year during his tenure.

Minimum Wage –he increased minimum wage by $1.10 to avoid passage of a constitutional amendment that would have increased minimum wage annually by the amount of inflation. The Governor accepted one-shot deal as price of avoiding regular increases.

jparks1972 on December 5, 2008 at 8:48 PM