GOP presidential long-shot Mike Huckabee, assailed by some fiscal conservatives unhappy with his record as governor of Arkansas, has endorsed the "Fair Tax" concept of replacing personal income taxes and corporate taxes with a national sales tax. Endorsing the Fair Tax may help Huckabee escape the criticism of his record on taxes that dogs his efforts to become the main conservative alternative to the not-so-conservative Big Three of John McCain, Rudy Giuliani and Mitt Romney...
GOPUSA reports on Huckabee's endorsement of the Fair Tax, which has long been championed by Georgia congressman John Linder and syndicated radio talker Neil Boortz...
GOPUSA:
"You get rid of income tax, you get rid of all of the withholding, you get rid of corporate taxes completely, totally," he said. "You replace it with a 23 percent consumption tax. It will bring business back to the United States that's leaving our shores because our tax laws make it impossible for an American-based business to compete."
Huckabee said the findings of a bipartisan commission that it would take a 34 percent sales tax to replace current federal taxes were "flawed."
Huckabee defended his tax-cutting record while governor of Arkansas, despite getting a grade of "D" from the Cato Institute, a conservative think tank, and being faulted by the Americans for Tax Reform for raising sales, fuel and cigarette taxes.
"Ninety-four times we cut taxes in Arkansas, including the first-ever broad-based tax cut in the history of my state in 168 years," he said.
But Huckabee also raised taxes in his last years as governor of Arkansas - specifically, the gasoline tax, a point critics always raise when assailing Huckabee's claims to be a fiscal conservative tax-cutter. I've never thought it was a very intellectually sound knock on Huckabee's fiscal record, and here's why:
The gas tax increase was approved overwhelmingly by Arkansas voters in a statewide referendum, in order to fund much-needed improvements to the state's highways. If you ever drove across Arkansas before Huckabee's administration and now after it you know the money was needed and was well-spent. And it's hard to criticize Huckabee for a tax increase that was submitted to voters.
The Washington Post looked at Huckabee's record on taxes and tax cuts back in March. Here's some of what they found:
Some of his fiscal decisions were driven by court-ordered spending increases or increase for federal entitlement spending for programs "over which you don't have executive control," Huckabee said.
Only the third Republican governor of Arkansas since Reconstruction, Huckabee enjoyed relatively strong support among voters during his time in office. He might not have been as popular if he had promoted himself as an "anti-government conservative," University of Arkansas political scientist Janine Parry said.
Huckabee's record on taxes also reflects the fact that he leads an impoverished state that has faced tax increases to pay for needs, including an ongoing school funding battle, Parry said.
Among the increases Huckabee advocated while in office was a 1/8-cent increase to pay for conservation programs, a $60 million-a-year fuel tax increase to pay for road construction, and a 1/2-cent sales tax rise. The sales tax increase was tied to a voter-approved constitutional amendment that trimmed property taxes by $180 million.
And, he allowed a 7/8-cent sales tax increase go into effect without his signature in 2004 in response state Supreme Court order to improve schools.
But Huckabee also signed into law nearly $100 million in income tax breaks and other relief measures targeting poor and middle-income taxpayers _ the largest tax cut in Arkansas history at the time. He later signed into law a 30 percent cut in Arkansas' capital gains tax.
Huckabee successfully pushed for a Property Taxpayers' Bill of Rights intended to clarify how property taxes are calculated and how the money is allocated to schools, local governments and other purposes. The law made it easier to challenge tax bills, including provisions for after-hours meetings to accommodate working people. "We improved test scores and accountability and increased teacher pay while maintaining fiscal responsibility," Huckabee wrote in a recent fundraising letter to supporters. "When I left office on Jan. 9 of this year, Arkansas had a surplus of almost $850 million."
This year, Huckabee's successor, Gov. Mike Beebe, a Democrat, has signed nearly $200 million worth of tax cuts, including the reduction of the state sales tax on food from 6 percent to 3 percent. The $121 million cut is the largest tax cut ever passed by state government. "I can guarantee that if they didn't have a surplus, they wouldn't be doing it," Huckabee said.
Huckabee's got his defense of his tax record as governor down to a good campaign soundbite, as in this AP story after a recent GOP candidates' debate.
More substantively, he deftly answered critics who call him a serial tax-raiser. He said he cut taxes 94 times as governor - "that's a pretty doggone good record." He defended a voter-approved gas-tax increase to improve roads and a sales-tax increase following a court order to improve schools.
"Do I apologize for going along with what 80 percent of the people of my state supported? No. Nor do I, in any way, apologize for building roads," he said. "Do I apologize for complying with a Supreme Court order to improve education in (a) state that desperately needed it? Of course I don't."
Huckabee's record on taxes isn't politically perfect for a Republican trying to run as a Reaganite fiscal conservative - he did support some tax increases - but some of his biggest tax increases were either driven by federal or court mandates or approved by voters. And Huckabee both spent the money effectively, cut some taxes, and left the state in good fiscal shape, allowing for even more tax cuts by his successor.
I'd trust him to govern the country like President Ronald Reagan did when it comes to taxes and and spending. After all, while Reagan cut taxes overall, he also raised some taxes halfway through his second term.
Huckabee's political rivals can easily if inaccurately caricature him as a serial tax-increaser. His endorsement of the bold Fair Tax concept is a good way to try the change the nature of the debate on taxes away from the competing spin over what he did in Arkansas to a new debate over what he and the other candidates believe would be the best tax policy for the country as a whole.
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