Advocacy group proposes taxes for education reform

(August 27, 2003) — (Little Rock-AP) -- A children's advocacy group proposes generating about 640 (M) million dollars for court-ordered education improvements by raising income and natural gas severance taxes, taxing exempt services and adding a half-penny to the state sales tax. Arkansas Advocates for Children and Families came up with the plan. It also provides for targeted sales tax rebates or a refundable state earned-income tax credit to offset the effect of a sales tax increase on low- and middle-income families. In addition, it would increase the personal income tax credit for all taxpayers. The proceeds would cover a first phase of education reforms ordered by the state Supreme Court.