Matt Campbell at Blue Hog Report does a detailed analysis of the U.S. constitutional failing of Rep. Ed Garner’s capital gains tax exemption bill. It would rain a windfall down on millionaires only for holdings in Arkansas property, not other property. Profits on sales of Walmart stock? Good for a tax break. GM stock? No such luck. Campbell lays out the case for how this violates the commerce clause. The proposal is also damaging to the state budget; unfair to poor people and demonstrably worthless in creating jobs based on rich previous experience here and elsewhere. But don’t let the facts get in the way of a Republican or Chamber of Commerce executive seeking to put some money in the pocket of a tycoon. And the Republican-led and dominated House Revenue and Tax Committee is reportedly unwilling to pass Gov. Mike Beebe’s tax cut on groceries, something the working stiffs CAN appreciate.
Tax cheat Garner (he’s repeatedly failed to remit taxes he owes the state on his bakery business) has passed the House a bill, should it be adopted, that will cost the state a huge sum in defending an unconstitutional law. Take it to the bank: A lawsuit will be filed if it passes.