Some states don’t care about the Constitution. They’ll pass unconstitutional, extraterritorial sales taxes, trying to bully innovative businesses into knuckling under.
Not Arkansas Governor Asa Hutchinson. He wants to do something about sales taxes in his state, but he wants to respect the Constitution as he does so.
In Quill v. North Dakota, the Supreme Court majority weakened the restrictions on states coercing out-of-state businesses into collecting sales taxes for them, but those restrictions were far from removed. Some states don’t care, and just pass laws anyway, but Asa Hutchinson wants to do it right, and will let the Congress act.
Not only that, but Hutchinson will ensure that the new taxation doesn’t grow government, according to KATV:
J.R. Davis, spokesperson for Gov. Hutchinson, wouldn’t go as far as saying the governor necessarily supports the tax that has been co-sponsored by northwest Arkansas Rep. Steve Womack. But Davis said if the federal government were to pass an online sales tax, Hutchinson would like to set those funds aside to help drive down the state income tax rate.
“If you look around at the states that surround Arkansas – we have the highest income tax rate,” said Davis. “The lower the income tax rate, I think the more competitive we can be not only to businesses but just bringing people to Arkansas.”
Hutchinson, who has been a vocal opponent of Donald Trump and only released a backhanded statement of support after Ted Cruz dropped, shows how you improve a state’s economy while respecting the Constitution.