State Tax Update Archive
[2003 - 2004] [2002 and Older]

Arkansas: A legacy of tax increases? 
Last May, a special election was called by Little Rock Mayor Jim Dailey, who encouraged citizens to accept a 1% sales tax to help pay for the Bill Clinton Presidential Library.  Despite the fact that all past Presidential Library's have been established with private funds, and even though the voters overwhelmingly (69%) rejected the tax, Dailey is up to his old tricks again by doing whatever it takes to help Bill Clinton build his legacy-enduring library.

After losing national accreditation, being forced to close two-thirds of its bathrooms because of lack of funding, and going as far as "selling off its animals" to raise money, the Little Rock zoo is now at the center of attention.  It appears the city wants to divert money from the already cash-stripped parks and zoo budget to help pay for the library land.  Says PETA's Ingrid Newkirk, "Those poor animals are starving and abused. The idea that money is going to be taken away from them to fund Clinton's library is an abomination." (Walls, MSNBC, 12/14/99).  In addition, in order to obtain all the land needed for the library, City Attorney Tom Carpenter plans to confiscate land for a "recreation park" from homeowners like Eugene Pfeifer.  While it is legal in Arkansas to take land by eminent domain for a park, Little Rock considers the private library a park; but taking land away for private purposes makes the condemnation illegal.  While this issue is still unresolved, it represents yet-another tax-raising scheme to pay for a project that could, and should, be paid for by the private sector.  President Clinton began his term by giving Americans the largest tax increase in history and is trying to end his political career with another tax increase, this time for a library that will help build his legacy.

Kentucky singing the blues
Gov. Paul Patton (D-Ky.) unveiled his legislative agenda last night, calling for a gas tax increase of 7 cents a gallon. The plan would increase state tax revenues by $222 million next year and $312 million in 2002. They would get the extra money by raising the gas tax, applying the 6% sales tax to the cost of labor for vehicle repairs and repairs of other personal property, taxing interstate telephone calls, and increasing the tax on real estate.

In a statement the governor weirdly contends that this would not be a tax increase because it "constitutes a comprehensive tax-reform package that will be revenue-neutral when considered over my four years as governor." Republicans quickly countered with their position.  "I'd still like to see the whole package be revenue-neutral, and let's just do a few less  services," said Rep. Mark Treesh (R-Philpot).

Sizemore continues to harass Oregon governor
In a testy response to activist Bill Sizemore's plans to place anti-tax initiatives on the ballot, Gov. John Kitzhaber (D-Ore.) exclaimed: "This is madness; this is madness."

Little more than a year after Democrat Kitzhaber defeated Sizemore, a Republican, in the 1998 governor's race, the two are at it again. This time, the debate is about Sizemore's initiative that would let Oregon income tax payers deduct all the federal taxes they pay. The governor went on to challenge Sizemore to a debate, throwing his weight behind an effort to defeat the initiative.  The challenge by the governor, readily accepted by Sizemore, creates an unusual situation. Tim Hibbitts, a Portland pollster recently asked, "When in American history has a governor who defeated his opponent 2-to-1 challenged him to a series of debates on public policy 14 months later?"

Enemy Award
On a recent trip to California, Secretary of Defense William Cohen visited Camp Pendleton, where he announced plans to increase housing allowances. A few hours later, Cohen and his entourage checked into the Four Seasons Hotel in Beverly Hills, where the secretary's room alone cost $10,000 for four nights. Pentagon spokesman Kenneth Bacon said that Cohen's meetings with celebrities such as Julia Roberts and Stephen Spielberg, plus his attendance at the People's Choice Awards, were simply "taxpayer business."