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Huckabee has mixed record on taxes
McClatchy Washington Bureau ^ | November 29, 2007 | David Lightman

Posted on 11/29/2007 1:49:57 PM PST by Graybeard58

WASHINGTON — Mike Huckabee was an early signer of the Republicans' no-tax-hikes pledge, and he's campaigning for the Republican presidential nomination by touting the 90 different taxes he cut as the governor of Arkansas.

He doesn't mention how, during his 10 and a half years as governor, he presided over $505 million worth of tax increases. Sales taxes were raised. So were gasoline taxes, and the per-capita tax burden on the state's residents grew by about 50 percent.

"He always talked against taxes, but he wanted all these spending programs," former Democratic state Rep. Boyd Hickinbotham said. "So he'd treat taxes like a rotten egg. He'd hold his nose, but he liked being able to spend the money."

Richard Weiss, who ran the Arkansas Department of Finance and Administration for eight years of Huckabee's administration and heads it today under a Democratic governor, has a different view. Huckabee, he said, "reacted to the times and the issues. He put the state first."

Huckabee's fiscal record doesn't lend itself to one-word, bumper-sticker politics, said Janine Perry, the director of the Arkansas Poll. His record, she said, is "somewhere in the middle between his opponents' charges and his defense."

Huckabee, whose campaign didn't respond to requests for comment, was the governor of Arkansas from July 1996 until last January, and he was in the same position as almost every other governor in the United States: The state constitution required him to balance the budget each year.

In the late 1990s, as the nation's and Arkansas' economies boomed, that wasn't difficult, and Huckabee presided over substantial tax cuts. In 1997 and 1998, state lawmakers approved $97.9 million in income-tax relief, and another $14.1 million in smaller tax breaks.

About 65 of Huckabee's 90 tax reductions were enacted from 1997 to 1999. The centerpiece was $90.6 million annually in individual income-tax breaks, but most of the cuts were small and highly specialized.

Among them: exempting residential lawn care from the gross receipts tax, a Salvation Army sales-and-use-tax exemption and an exemption for sales of biomass to produce electricity.

Huckabee came to Washington in 1999 and boasted about his record. "The big battle was no longer, 'Which taxes will we raise and by how much?' but 'Which taxes will we cut and by how much?' " he told the Heritage Foundation, a conservative research center.

"To shift the mentality of the legislators — to change the paradigm, if you will — was singularly, I think, the most significant thing that has happened (in Arkansas) in the past two and a half years."

But as the economy soured early this decade, Huckabee found himself in the same situation as many other chief executives: Massive spending cuts weren't enough to balance the budget, so he had to find new revenue.

The State Supreme Court handed him another problem when it ruled that Arkansas' education-funding system wasn't meeting student's needs and had to be revamped.

So in 2003, Huckabee had a very different message. In his State of the State speech that year, he warned lawmakers that, "If you deem that all new revenue sources, your proposals or mine, are indeed dead on arrival, then you'll be saying that teacher pay increases are dead, scholarships are dead, medicine for the elderly is dead, that long sentences are dead and that we'll have a massive early release of thousands of inmates from the (prison) system."

His proposals included a five-eighths of a cent increase in the sales tax. After months of wrangling, the legislature approved increasing the sales tax by seven-eighths of a cent to pay for education, a measure designed to raise $378 million that fiscal year.

Hickinbotham, then the chairman of the House Revenue and Taxation Committee, was highly critical of Huckabee, saying that while he wanted the education changes, he never actively suggested ways to fund them.

"He never knocked on my door," Hickinbotham said in an interview this week.

Huckabee, who was upset because he thought the increase didn't include sufficient school revisions, let the bill become law without his signature.

But Weiss, who headed the state's revenue agency, countered that Huckabee wasn't reluctant to raise taxes if he thought it was necessary.

"These people who say you should never raise taxes are plain nuts," Weiss said.

Huckabee's tax record is coming under increasing fire during the presidential campaign, particularly as he's beginning to be regarded as a more serious candidate. Former Tennessee Sen. Fred Thompson, for instance, charges that "He was a very high-tax governor."

Activist groups are divided on whether Huckabee is a true-blue tax cutter.

Grover Norquist, the president of Americans for Tax Reform, which sponsors the no-tax pledge, called Huckabee's tenure as governor "problematic in terms of tax and spending," but said it shouldn't necessarily be used to gauge how he'd act as president.

"My position is that the Roman Catholic Church maintains market share by accepting converts," Norquist said, "and the anti-tax movement needs to take elected officials and say because you've done something problematic in the past doesn't mean you can't commit."

Huckabee also gets a warm reception from Americans for Fair Taxation, which is pushing for a "fair tax," which would replace all income and Social Security taxes with a national retail-sales tax.

"Whatever his record, anyone who advocates for the fair tax is definitely a tax cutter and a tax reformer," said Ken Hoagland, Americans for Fair Taxation spokesman.

But David Keating, the executive director of the Club for Growth, a low-tax advocacy group, is sharply critical of Huckabee's record.

"He didn't even try to stop the tax increases," Keating said. "He could have vetoed it (tax increases). He could have gone directly to the people."

Perry, who's also a political science professor at the University of Arkansas, argued that Huckabee's choices weren't that simple. Arkansas' legislature is dominated by Democrats, she said, and a simple majority can override a governor's vetoes.

"He is not an anti-government Republican, and to get things done, he knew he had to play ball," she said.

Like most governors, she said, Huckabee had to build coalitions to make the state work, and his re-election margins are evidence that the tax increases had widespread popular support.

In 2002, for instance, state voters soundly defeated a bid to repeal taxes on food and medicine.

In October 2003, the Arkansas Poll asked state residents how they felt about increasing taxes to fund education improvements. Forty-one percent said they approved of higher sales taxes, while 57 percent disapproved. But they were only slightly more enthusiastic about cutbacks in other services: 49 percent approved and 42 percent didn't.

"People saw education as the most important function of government," Perry said. Huckabee, she said, understood that, and understood his state.

To learn more about Huckabee's fiscal record:

http://www.factcheck.org/elections-2008/huckabees_fiscal_record.html

http://www.clubforgrowth.org/2007/11/updated_huckabee_white_paper.php


TOPICS: Extended News; Politics/Elections
KEYWORDS: huckabee
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1 posted on 11/29/2007 1:49:59 PM PST by Graybeard58
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To: Graybeard58

Funny, this wasn’t what Dick Morris said in his article yesterday, but I don’t put too much faith in Dick Morris anyway. I’ll stick with this source as well as others.


2 posted on 11/29/2007 1:53:26 PM PST by GOP_Lady
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To: All
"These people who say you should never raise taxes are plain nuts," Weiss said.

I'm plain nuts.

3 posted on 11/29/2007 2:00:23 PM PST by Graybeard58 ( Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Graybeard58
His record, she said, is "somewhere in the middle between his opponents' charges and his defense."

That is a fair assessment of his record.

4 posted on 11/29/2007 2:01:22 PM PST by HAL9000 (Fred Thompson/Mike Huckabee 2008)
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To: Graybeard58

Huckabee did 90M in tax cuts during an expansion and 505M in tax increases during a recession. Even after massive budget cuts they still had to raise taxes that much? I want to know how much spending went up in the 90’s.


5 posted on 11/29/2007 2:07:07 PM PST by Free Vulcan (No prisoners. No mercy.)
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To: Graybeard58

Mixed ? Huckster never met a tax he didn’t hike.


6 posted on 11/29/2007 2:09:29 PM PST by fieldmarshaldj (~~~Jihad Fever -- Catch It !~~~ (Backup tag: "Live Fred or Die"))
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To: fieldmarshaldj
My pick is Fred but I could vote for Huckabee in the general, if he's the nominee. I can't say the same for Rudy/Mitt.
7 posted on 11/29/2007 2:11:19 PM PST by Graybeard58 ( Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Graybeard58

My very favorite is Hunter, but I will gladly vote for Huckabee


8 posted on 11/29/2007 2:27:15 PM PST by reflecting
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To: reflecting

“My very favorite is Hunter, but I will gladly vote for Huckabee”

I find that position difficult to square as Hunter is a solid conservative and other than on a few social issues Huckabee is a liberal.


9 posted on 11/29/2007 3:01:59 PM PST by traderrob6
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To: Graybeard58

Get ready for the Hucka-bigots to show up...


10 posted on 11/29/2007 3:02:54 PM PST by Amalie (FREEDOM had NEVER been another word for nothing left to lose...)
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To: fieldmarshaldj

“Mixed record on taxes”

Yeah,right. UP.UP.UP. Higher. Higher. Higher. UP.UP.UP.

Mixed?! Huck’s a huckleberry.


11 posted on 11/29/2007 3:06:09 PM PST by ncphinsfan
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To: Graybeard58

Huckster is the illegals bestest friend. Any pro-illegals candidate will NEVER get my vote.


12 posted on 11/29/2007 3:15:53 PM PST by fieldmarshaldj (~~~Jihad Fever -- Catch It !~~~ (Backup tag: "Live Fred or Die"))
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To: Amalie
Get ready for the Hucka-bigots to show up...

Does that include all of us Arkansas FReeper conservatives who know the Huckster far better than the vast majority of others on FR and wouldn't give a plug nickle for him?

13 posted on 11/29/2007 3:21:47 PM PST by OB1kNOb (Support Duncan Hunter for the 2008 GOP presidential nominee. He is THE true conservative candidate.)
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To: Amalie
Get ready for the Hucka-bigots to show up...

So in your little world people who tell the true about the nanny stater are bigots?? Tell me how?

14 posted on 11/29/2007 3:28:50 PM PST by org.whodat (What's the difference between a Democrat and a republican????)
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To: GOP_Lady

Mike Huckabee is a Fiscal Conservative

http://www.townhall.com/columnists/DickMorrisandEileenMcGann/2007/11/28/mike_huckabee_is_a_fiscal_conservative?page=1

In Arkansas, the income tax when he took office was 1 percent for the poorest taxpayers and 7 percent for the richest, exactly where it stood when he left the statehouse 11 years later. But, in the interim, he doubled the standard deduction and the child care credit, repealed capital gains taxes for home sales, lowered the capital gains rate, expanded the homestead exemption and set up tax-free savings accounts for medical care and college tuition.

Most impressively, when he had to pass an income tax surcharge amid the drop in revenues after Sept. 11, 2001, he repealed it three years later when he didn’t need it any longer.

He raised the sales tax one cent in 11 years and did that only after the courts ordered him to do so. (He also got voter approval for a one-eighth-of-one-cent hike for parks and recreation.)

He wants to repeal the income tax, abolish the IRS and institute a “fair tax” based on consumption, and opposes any tax increase for Social Security.


15 posted on 11/29/2007 3:52:13 PM PST by dotnetfellow
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To: dotnetfellow

The Fair Tax is a bad deal.


16 posted on 11/29/2007 4:45:00 PM PST by GOP_Lady
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To: GOP_Lady

The fair tax is a great deal.

http://www.townhall.com/columnists/NealBoortz/2007/11/27/the_fairtax_—_the_truth?page=full&comments=true

“Implementation of the FairTax would constitute the biggest transfer of power from the government to the people in the history of this Republic.”


17 posted on 11/29/2007 4:51:55 PM PST by dotnetfellow
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To: dotnetfellow

Oh, no it’s not.


18 posted on 11/29/2007 4:53:47 PM PST by GOP_Lady
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To: GOP_Lady
I am not saying you are wrong - I am only about 60% convinced that the fair tax is the way to go, but Donnetfellow provided links and information to back up his statements.

Do you have more informations or a link beyond "The fairtax is not great" or "Oh, no it's not"?

19 posted on 11/29/2007 5:06:14 PM PST by commish (Freedom tastes sweetest to those who have fought to protect it.)
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To: commish

If it were so great, other GOP Presidential candidates would be discussing it. It’s a bad idea.


20 posted on 11/29/2007 5:15:52 PM PST by GOP_Lady
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