\nThe
\npast week was full of new developments that possibly signals the start of a new
\nemphasis on the major pre-session issues of Medicaid and tax reform. Those are
\nthe two key questions that everyone expected to consume the General Assembly in
\n2013, but which have not been the topic of much official debate. Although,
\napparently, legislators have been hard at work behind the scenes on both issues.<\/p>\n
\nBy
\nhelping these neediest of Arkansans obtain insurance coverage with federally
\nsubsidized private insurance 250,000 Arkansans could receive insurance coverage
\nwhile the state would not grow its Medicaid rolls and hospitals will be able to
\nreduce losses from charity care. <\/p>\n
<\/p>\n
\nThis
\nis the first person in legislative leadership to offer a value for total tax
\nreductions. Governor Beebe has proposed cutting the grocery tax, but only as
\nselected state funding commitments expire (like desegregation funding for
\nPulaski County public schools).<\/p>\n
\nThere
\nare a number of other tax cut options on the table as well. The Chamber
\nendorses two tax cuts that support manufacturing in Arkansas and we encourage
\nyou to join us in advocating for their passage.<\/p>\n
HB1218<\/a> – Eliminates the state sales tax on utilities used <\/a>SB334<\/a> – Eliminates the sales tax on parts used to <\/p>\n
\nby manufacturers. Only one of our surrounding states tax manufacturer’s
\nutilities, which places Arkansas at a competitive disadvantage in both
\nrecruitment and retention of manufacturers. In order to have a diverse economy,
\nNorthwest Arkansas must continue to support and protect its manufacturers by
\ncreating an operating environment that allows them to be the most competitive
\nin the world. This bill continues a steady reduction in this tax and improves
\nour ability to recruit and retain jobs.<\/p>\n
\nrepair or replace equipment used by manufacturers. This reduction is important
\nto retain industry in Northwest Arkansas since many of our local manufacturers
\nnot only have competitors from around the world, they also have other
\nfacilities in the United States When a company is looking to expand production
\nor make their facilities more efficient we want them to choose their Northwest
\nArkansas location to improve and expand instead of moving production to
\nsomewhere less costly. Reducing the sales tax on repair and replacement parts
\nand equipment gives the state an advantage that might save hundreds if not
\nthousands of existing jobs. <\/p>\n
\nACTION – I ENCOURAGE YOU TO JOIN WITH US AND CONTACT YOUR LEGISLATORS IN
\nSUPPORT OF HB1218 AND SB334. WE MAKE IT EASY TO SUBMIT AN EMAIL TO THE REVENUE
\nAND TAX COMMITTEE.<\/strong><\/div>\n