Rep. Ed Garner, the Republican sales and income tax deadbeat from Maumelle, grabs a headline by getting to the front of the legislation-filing queue with another run at completely exempting capital gains from income tax. They are now subject to a 4.9 percent rate on assets held a year or more. ADD: Garner’s bill would apply only to Arkansas property.
The millionaires who live off capital gains earnings in Arkansas investments? They’d pay zero in taxes. Execs of publicly held companies given huge blocs of stock for nothing, when they sold them and reaped big gains? They’d owe nothing. The checker at the Wendy’s drive-thru? He’ll keep paying on his Arkansas income.
If cutting capital gains taxes created jobs, as George W. Bush claimed when he pushed through his tax cut on investment income, we’d be rolling in them.
But the more obvious question is where Easy Ed will come up with the money — $100 million the first two years was the estimate in 2009 — to pay for another giveaway to the rich?
Who needs a law? Just follow Garner’s past examples. Don’t pay. Doesn’t turn out to be a bar to legislative service.
Care for some deep research into the fallacy that this tax cut would create jobs? Check out Blue Hog Report.