Anyone else worried about the barrage of tax cuts making their way through the General Assembly this session? In addition to the three passed by the House last week — capital gains, single parents’ income and manufacturers’ utility bills — the Senate passed its own triplet yesterday targeting the grocery sales tax, while doubling the state sales tax exemption and lowering the sales tax manufacturers pay on utilities.
Aside from the half-cent grocery sales tax reduction, which will reportedly cost the state $20.8 million a year, the list of proposed tax cuts continues to grow on a near daily basis with Gov. Mike Beebe frantically pulling his hair worried about the devastation to his perfectly-balanced budget.
For all those out there watching the legislative session like the bloody sport it’s become, Andrew DeMillo does a pretty comprehensive rundown of the $141.4 million in proposed cuts — most of which, ironically, will end up being cut out to keep from devastating the state budget.
You can bet Beebe is starting to slowly feel the rug pulled out from under the feet of the state’s balanced budget.
UPDATE: Not mentioned above, but certainly newsworthy, Rep. Matthew Shepherd’s proposed tax holiday for school supplies and clothing from sales tax the first Saturday and Sunday of every August will now move out of committee and to the House for a vote.