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Issue Position: Cutting Taxes, Balancing the Budget

Issue Position

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As Governor, Mike Beebe has met the mandate for a balanced budget every year he's been in office. In lean times, when the economy required it, he made sure that state government tightened its belt, just like families across Arkansas have done. Mike Beebe's had to make tough choices, doing the right thing to cut what must be cut, yet protecting essential services at the same time. And Mike has made record tax cuts, too, helping Arkansas families keep more of their money in these tight economic times.
Ending the Food Tax

In 2006, Mike Beebe promised to end the grocery tax in Arkansas with a gradual phase-out of the state's most regressive tax. As Governor, Beebe kept his word and implemented the largest tax cut in state history. He cut the food tax in half in his first legislative session and cut the tax again in his second regular legislative session. So far, the tax has been reduced from six cents on the dollar to two cents on the dollar. Thanks to Mike's leadership, Arkansans are saving more than $230 million per year on the sales tax on food. And as Governor for a second term, Mike Beebe will continue his effort to achieve a complete phase-out of the tax.
Reducing Property Taxes

Mike Beebe believes that the three most important places in the lives of most Arkansans are where they work, where they worship, and where they lay their heads at night. That's why Mike Beebe expanded the Homestead Property Tax Credit from $300 to $350 annually, increasing the exemption and reducing property taxes for homeowners in the Natural State.
Cutting Taxes for Employers

To save existing jobs at Arkansas facilities and attract new manufacturers to the State, Governor Beebe led the creation of a $20.2 million cut in the taxes manufacturers pay on utilities. By lowering the taxes on electricity and natural gas, Mike Beebe is not only helping the struggling manufacturing sector keep and maintain jobs in Arkansas, but he is also working to attract more industries here.

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