Governor Advocating Repeal of Tax Surcharge

SEPTEMBER 8, 2004 - Posted at 4:45 p.m. CDT

LITTLE ROCK, AR - Governor Mike Huckabee is now advocating repeal of the state's three percent income tax surcharge.  The surcharge was enacted last year when he and legislators were desparate for new revenues to cover a $250 million budget shortfall.

Now that tax collections are up, Huckabee is criticizing the surcharge as ill-conceived and bad for business.  During his monthly call-in radio show this morning, he told a caller that the surcharge amounts to a tax on a tax.  The governor didn't mention that the law already provides that the surcharge will be reduced or will expire altogether as tax collections increase in an improving economy.

Representative Phillip Jackson of Berryville sponsored the surcharge legislation and said that Huckabee did not object to the idea at the time.  Jackson says the Governor supported doing what needed to be done to get the state out of its financial hole.

(Copyright 2004 by The Associated Press.  All Rights Reserved.)