Child Advocates Call For $640M Tax Increase - KAIT Jonesboro, AR - Region 8 News, weather, sports

State School Crisis

Child Advocates Call For $640M Tax Increase

August 26, 2003 - Posted at: 1:55 p.m. CDT

LITTLE ROCK, Ark. -- A children's advocacy group today proposed generating $640 million for a first wave of funding for improvements to public schools.

The group wants to address court-ordered education upgrades by raising income and severance taxes, taxing exempt services and adding a half-penny to the state sales tax.

The plan offered by Arkansas Advocates for Children and Families provides for targeted sales tax rebates or a refundable state earned-income tax credit. That would offset the effect of a sales tax increase on low- and middle-income families, and increase the personal income tax credit for all taxpayers.

The group says the plan would cover the first year of education reforms ordered by the state Supreme Court. The group acknowledged that more funding could be needed in later years.

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