By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.
When people have a lengthy agenda to complete, they can start with the easier stuff or the harder stuff. The Arkansas Legislature this session understandably started with the easier stuff.
The easier stuff is cutting taxes. Gov. Asa Hutchinson is determined to cut Arkansas’ top rate to 5.9 percent so it won’t be the highest in the region. He says it sticks out like a sore thumb when he’s trying to recruit business and industry.
The hard part was working out the details and making sure the budget didn’t take too big a hit. Both pretty much have been accomplished. It still has to get through the House after passing the Senate, but while there still may be small hurdles to overcome, it eventually will happen.
The tax cuts are easier because the state has some extra money. That’s happened because policymakers here govern relatively responsibly – way more so than in Washington, D.C. – and the state is benefitting from a strong national and global economy and a seemingly generous federal government.
None of those should be seen as permanent realities, including the last two. We’re experiencing one of the longest economic expansions in modern memory, and what goes up will eventually level off. The Brits’ increasingly messy divorce from Europe is just one of many factors worldwide that could gum things up. If the global economy slows down, it will affect Arkansas. Continue reading Tax cuts – that’s the easy part