Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax
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2 Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax Data Collected by Southeastern Institute of Research, Inc. Report Prepared by Joanne Binette Copyright 2002 AARP Knowledge Management 601 E Street NW Washington, DC Reprinting with Permission
3 AARP is a nonprofit, nonpartisan membership organization for people 50 and over. We provide information and resources; advocate on legislative, consumer, and legal issues; assist members to serve their communities; and offer a wide range of unique benefits, special products, and services for our members. These benefits include AARP Webplace at AARP Modern Maturity, and My Generation magazines, the monthly AARP Bulletin, and a Spanish-language newspaper, Segunda Juventud. Active in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP celebrates the attitude that age is just a number and life is what you make it. Acknowledgements AARP staff from the Arkansas State Office, State Affairs, Brand Management, Grassroots and Elections, and Knowledge Management contributed to the design and implementation of this study. Special thanks go to AARP staff including Maria Reynolds-Diaz, Arkansas State Office; Sam Sellers, Arkansas State Office; John Luehrs, State Affairs; Clare Hushbeck, State Affairs; Elinor Ginzler, Brand Management; Katherine Brown, Brand Management; Lois Smith, Grassroots and Elections; Gretchen Straw, Knowledge Management; Rachelle Cummins, Knowledge Management; Erica Dinger, Knowledge Management; and Kate Bridges, Knowledge Management. John Fries of Southeastern Institute of Research insured a timely and high quality survey. Joanne Binette, AARP Knowledge Management, managed all aspects of the project and wrote the report. For more information, contact Joanne Binette at (202)
4 Background Currently, the tax on food and over-the-counter medicines generates $393 million annually to the Arkansas general revenue fund for state services such as public education, law enforcement, highways, and social services. The tax on soda pop generates $168 million annually that is specifically allocated to health care for children and long-term care services for older persons and those with disabilities. A constitutional amendment has been proposed in Arkansas to eliminate the tax on food including groceries and restaurant meals; over-the-counter medicines; and soda pop. This amendment also prohibits the taxation of food and over-the-counter medicines in the future. The elimination of these taxes will result in a loss of state and local revenues and reduce the funding and delivery of state services including health and long-term care services. The amendment has no provisions to replace this lost revenue. This survey measures the opinions of Arkansas registered voters age 18 and older about eliminating the tax on food, medicine, and soda pop used to generate money for state services in Arkansas. Specifically, this telephone survey of 801 randomly selected Arkansas registered voters explores: Opinion about the adequacy of current state funding for health and long-term care services Opinion about the importance of maintaining current levels of state funding for health and long-term care services Support for or opposition to getting rid of the tax on food, medicine, and soda pop, even if it means a reduction in the funding and delivery of state services such as public education, law enforcement, and social services Support for or opposition to getting rid of the tax on food and medicine and keeping only the soda pop tax which generates money specifically for health and long-term care services Support for or opposition to seven revenue-generating proposals to help maintain the funding and delivery of health and long-term care services An annotated questionnaire, appended to the report, discloses exact question wording and all responses to the survey. Percentages may not add up to 100 percent due to rounding or non-response. Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 1
5 Highlights More than half (52%) of Arkansas registered voters say there is not enough money in the state budget to meet the need and ensure the quality of health and long-term care services. In contrast, just seven percent say there is more than enough, and 23 percent say there is enough money. More than nine in ten Arkansas registered voters think that it is important to maintain current levels of state funding for health and long-term care services, with about three-quarters (74%) saying it is very important. Almost six in ten strongly (40%) or somewhat oppose (18%) eliminating the current tax on food, over-the-counter medicines, and soda pop, which would reduce the funding and delivery of state services including health and long-term care. When given an alternative proposal to keep the soda pop tax which funds state health and long-term care services and eliminate the tax on food and over-the-counter medicines, two-thirds (67%) strongly support and another 16 percent somewhat support keeping the soda pop tax. Three of seven alternative proposals to generate money to help maintain the funding and delivery of state services are strongly or somewhat supported by the majority of Arkansas registered voters: Increasing the tax on alcohol (70% support) Increasing the tax on cigarettes (63% support) Adding a temporary tax to the current state income tax for people with annual household incomes of $130,000 or more (51% support) The remaining proposals to generate funds are opposed by at least six in ten registered voters: Increasing the property tax (86% oppose) Increasing the vehicle registration and marriage and birth certificate fees (64% oppose) Broadening the sales tax to include services such as lawyers, accountants, and insurance agents (64% oppose) Increasing the sales tax on items they currently pay tax on except food, overthe-counter medicines, and soda pop (62% oppose) Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 2
6 Findings More than seven times as many Arkansas registered voters believe there is not enough money in the state budget for health and longterm care services as believe there is more than enough. Fifty-two percent of Arkansas registered voters think that there is not enough money in the state budget to meet the need for and ensure quality health and long-term care services while seven percent think there is more than enough money. Less than a quarter say there is enough money. Perception of Current State Budget for Health and Long-Term Care Services (n=801) Not Enough 52% Don't Know/ Refused 18% More Than Enough 7% Enough 23% The majority of Arkansas registered voters believe it is very important to maintain current levels of funding for health and long-term care services. Nearly three-quarters of Arkansas registered voters think that it is very important to maintain current levels of funding for health and longterm care services. Another 19 percent think that it is somewhat important. Importance of Maintaining Current Levels of Funding for Health and Long-Term Care Services (n=801) Very Important 74% Somewhat Important 19% Not Very/ Not At All Important Don't 3% Know/ Refused 4% Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 3
7 Arkansas registered voters oppose eliminating the tax on food, medicine, and soda pop if it means reducing the funding and delivery of state services including pubic education, law enforcement, highways, social services, and health and long-term care services. Almost six in ten Arkansas registered voters strongly or somewhat oppose eliminating the current tax on food, over-the-counter medicines, and soda pop if it means reducing the funding and delivery of state services. Less than one in three strongly or somewhat support eliminating the tax. Support for and Opposition to Eliminating the Tax on Food, Medicine, and Soda Pop (n=801) Somewhat Oppose 18% Somewhat Support 4% Strongly Support 24% Strongly Oppose 40% Don't Know/ Refused 14% When given an alternative proposal to keep the soda pop tax and get rid of the tax on food and over-the-counter medicines, over eight in ten registered voters support keeping the soda pop tax that funds health and long-term care services. Respondents were given an alternative proposal to keep the tax on soda pop that is specifically used for health care services for children and long-term care services for older persons and those with disabilities and eliminate the tax on food and over-the-counter medicines. Almost seven in ten strongly support keeping the soda pop tax, and another 16 percent somewhat support this alternative. Only one in ten strongly oppose. Support for Keeping the Soda Pop Tax for Health and Long-Term Care Services (n=801) Strongly Support 67% Refused 6% Strongly Oppose 10% Somewhat Support 16% Somewhat Oppose 2% Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 4
8 Arkansas registered voters support increasing taxes on alcohol and cigarettes to maintain current levels of funding and delivery of state services including public education, law enforcement, highways, social services, and health and long-term care services. Arkansas registered voters were asked whether they support or oppose seven proposals to help maintain current funding and delivery of state services including public education, law enforcement, highways, social sevices, and health and long-term care services. Two proposals are strongly supported by more than half of Arkansas registered voters: increasing the tax on alcohol (59%) and cigarettes (54%). Four proposals are strongly opposed by voters. About three-quarters strongly oppose increasing the property tax (74%). Nearly half strongly oppose increasing vehicle registration and marriage and birth certificate fees (49%); broadening the sales tax to include services such as lawyers, accountants, and insurance agents (47%); and increasing the sales tax on items they currently pay tax on except food, medicine, and soda pop (47%). Although more than half (51%) of Arkansas voters strongly or somewhat support adding a temporary income tax to the current state income tax for people with annual household incomes of $130,000 or more, four in ten (42%) strongly or somewhat oppose this proposal. Support for and Opposition to Proposals to Help Maintain Current Funding and Delivery of State Services in Arkansas (n=801) Increase alcohol tax 59% 11% 7% 17% Increase cigarette tax 54% 9% 6% 24% Add a temporary income tax 37% 14% 13% 29% Increase sales tax 14% 15% 15% 47% Add tax on services 14% 10% 17% 47% Increase vehicle registration & marriage & birth certificate fees 12% 14% 15% 49% Increase property tax 4% 6% 12% 74% 0% 20% 40% 60% 80% 100% Strongly Support Somewhat Support Somewhat Oppose Strongly Oppose Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 5
9 Conclusions Arkansas voters think there is not enough money in the state budget for health and longterm care services. Not surprisingly, they think it is very important to maintain funding for health and long-term care services. Voters oppose eliminating the tax on food, overthe-counter medicines, and soda pop that currently funds a variety of state services including health and long-term care. Moreover, they strongly support keeping the soda pop tax which generates revenues specifically for health and long-term care services if there is an alternative proposal to eliminate the tax on food and over-the-counter medicines and keep the soda pop tax. To replace lost revenues if the tax on food, overthe-counter medicines, and soda pop were eliminated, a variety of alternative funding sources were examined and only two garnered strong support from over half of Arkansas registered voters: increasing the taxes on alcohol and cigarettes. Another alternative, adding a temporary income tax to the current state income tax for people with annual household incomes of $130,000 or more, is at least somewhat supported by a majority of voters. Voters are opposed to a number of other funding sources: increasing the property tax; increasing vehicle registration and marriage and birth certificate fees; broadening the sales tax to include services such as lawyers, accountants, and insurance agents; and increasing the sales tax on items they currently pay tax on except food, over-the-counter medicines, and soda pop. Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 6
10 Methodology AARP commissioned Southeastern Institute of Research to conduct a random digit dial (RDD) telephone survey of registered voters age 18 or older in Arkansas. From a random sample of 4,597, a total of 801 interviews were completed from September 26 October 9, 2002, yielding a 24 percent response rate and 34 percent cooperation rate. 1 The survey has a sampling error of plus or minus 3.5 percent. This means that in 95 out of 100 samples of this size, the results obtained in the sample would fall in a range of 3.5 percentage points of what would have been obtained if every registered voter in Arkansas age 18 or older had been surveyed. Survey responses were weighted to reflect the distribution of age of the registered voter population age 18 or older of Arkansas. Weighted responses to all survey questions are in the attached annotated questionnaire. For more information about this study, contact Joanne Binette, AARP Knowledge Management, (202) The response rate is Response Rate 3 and the cooperation rate is Cooperation Rate 3 from the following publication: The American Association for Public Opinion Research Standard Definitions: Final Dispositions of Case Codes and Outcome Rates for Surveys. Ann Arbor, Michigan: AAPOR. Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 7
11 Annotated Questionnaire Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 8
12 SOUTHEASTERN INSTITUTE OF RESEARCH, INC. MAINTAINING HEALTH AND LONG-TERM CARE SERVICES: A SURVEY ON ARKANSAS FOOD, MEDICINE, AND SODA POP TAX Arkansas Registered Voters age 18+ = 801, Response Rate = 24%, Sampling Error = +3.5% Weighted to reflect age distribution of registered voters ages 18+ in Arkansas (Weighted n = 801) Percentages may not add to 100 percent due to rounding. Start time: Questionnaire # ( - ) Introduction Hello, this is calling from Southeastern Institute of Research, a national opinion research firm. We are conducting a survey in Arkansas to find out your opinion on an important issue facing the state. Your views are important and we would greatly appreciate your participation. Let me assure you, this is not a sales call and you will not be asked to buy anything either now or later. All of your responses are kept entirely confidential. The survey should take only about 4 minutes of your time. I1. RECORD GENDER OF PERSON WHO ANSWERED PHONE: Male Female I2. To make our study more representative of those living throughout Arkansas, I need to speak with the youngest male who is at home right now and is at least 18 years old. 1) Person on phone is youngest male [SKIP TO S1] 2) Other person is youngest male and is coming to phone [SKIP TO I4] 3) Person is not available 4) REFUSED [SKIP TO R1] I3. Then may I speak to the oldest female who is at home right now and is at least 18 years old? 1) Person on phone is oldest female [SKIP TO S1] 2) Other person is oldest female and is coming to the phone [SKIP TO I4] 3) Person is not available [TERMINATE] 4) REFUSED [SKIP TO R1] Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 9
13 I4. Hello, this is calling from Southeastern Institute of Research, a national opinion research firm. We are conducting a survey in Arkansas to find out your opinion on an important issue facing the state. Your views are important and we would greatly appreciate your participation. Let me assure you, this is not a sales call and you will not be asked to buy anything either now or later. All of your responses are kept entirely confidential. The survey should take only about 4 minutes of your time. 1) CONTINUE 2) REFUSED [SKIP TO R1] Screening S1. In order to save time and ensure I only ask you questions relevant to someone in your age group, could you tell me whether you are aged 50 or older, or are you under 50? [PROGRAMMERS: We need 350 respondents age 50+] 52% % 50+ <.5% Refused S2. And could you tell me whether you are registered to vote in the state of Arkansas? 100% Yes No Don t know/not sure Refused S3. Finally before we get started, could you tell me whether or are very likely, somewhat likely, not too likely, or not at all likely to vote in the upcoming November elections? 90% Very likely 10% Somewhat likely Don t know/not sure [TERMINATE] Refused [TERMINATE] Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 10
14 Main Questionnaire Q1. Which of the following best describes Arkansas current funding for health and long-term care services? Do you think.(read ENTIRE LIST AND ROTATE CATEGORIES. ENTER ONLY ONE RESPONSE.) 7% There is more than enough money in the state budget to meet the need for services and ensure quality? 23% There is enough money in the state budget to meet the need for services and ensure quality? 52% There is not enough money in the state budget to meet the need for services and ensure quality? 17% Don't know <.5% Refused Q2. How important is it to you for Arkansas to maintain current levels of funding that help needy people obtain health and long-term care services even if you are not personally eligible for these services? 74% Very Important 19% Somewhat Important 1% Not Very Important 2% Not At All Important 3% Don't know <.5% Refused Q3. In November voters in Arkansas will be asked about an amendment to the state s constitution to get rid of the tax on food, including groceries and restaurant meals; over the counter medicines; and soda pop. If this amendment is passed, the legislature cannot tax food and over the counter medicines in the future. The tax on food and over the counter medicines generates $393 million annually for state services such as public education, law enforcement, highways, and social services. The tax on soda pop generates an additional $168 million annually specifically for health care for children and long-term care services for older persons and those with disabilities. Getting rid of the tax on food, medicine, and soda pop may mean a reduction in the funding and delivery of these services. Do you support or oppose getting rid of the tax on food, medicine, and soda pop, even if it means reducing the funding and delivery of state services including public education, law enforcement, highways, social services, and health and long-term care services? Is that strongly or somewhat? Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 11
15 (IF SUPPORT interviewer probe: Let me make sure I understand your response, you want to GET RID OF the tax on food, medicine, and soda pop which funds state services. IF OPPOSE: Let me make sure I understand your response, you want to KEEP the tax on food, medicine, and soda pop which funds state services.) 24% Strongly support 4% Somewhat support 18% Somewhat oppose 40% Strongly oppose 13% Don't know Q4. A possible alternative for the funding and delivery of health care services for children and long-term care services for older persons and those with disabilities would be to get rid of the tax on food and medicine and keep only the soda pop tax. The soda pop tax generates $168 million annually specifically for these services in Arkansas. Do you support or oppose keeping the tax on soda pop for the funding and delivery of health care services for children and long-term care services for older persons and those with disabilities? Is that strongly or somewhat? (IF SUPPORT interviewer probe: Let me make sure I understand your response, you want to KEEP the tax on soda pop which funds state health and long-term care services. IF OPPOSE: Let me make sure I understand your response, you DO NOT WANT TO KEEP the tax on soda pop which funds state health and long-term care services.) 67% Strongly support 16% Somewhat support 2% Somewhat oppose 10% Strongly oppose 5% Don't know/depends Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 12
16 Q5. If the tax on food, medicine, and soda pop were eliminated this may result in a reduction in the funding and delivery of state services in Arkansas. To maintain current levels of funding and delivery of services in Arkansas including public education, law enforcement, highways, social services, and health and long-term care services, do you support or oppose..(rotate ITEMS AND READ QUESTION FOR EACH ITEM.) Adding a temporary tax on income to the current state income tax. This additional temporary tax on income would only apply to people with annual household incomes of $130,000 or more. 37% Strongly support 14% Somewhat support 13% Somewhat oppose 29% Strongly oppose 7% Don't know <.5% Refused Increasing the sales tax on items you currently pay tax on except for food, over the counter medicines, and soda pop. 14% Strongly support 15% Somewhat support 15% Somewhat oppose 47% Strongly oppose 10% Don't know <.5% Refused Adding a sales tax on services such as lawyers, accountants, and insurance agents. 14% Strongly support 10% Somewhat support 17% Somewhat oppose 47% Strongly oppose 12% Don't know Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 13
17 Increasing the tax on property including homes and cars. 4% Strongly support 6% Somewhat support 12% Somewhat oppose 74% Strongly oppose 5% Don't know Increasing the tax on cigarettes. 54% Strongly support 9% Somewhat support 6% Somewhat oppose 24% Strongly oppose 6% Don't know Increasing the tax on alcohol. 59% Strongly support 11% Somewhat support 7% Somewhat oppose 17% Strongly oppose 6% Don't know <.5% Refused Increasing fees such as vehicle registration, and marriage and birth certificate fees. 12% Strongly support 14% Somewhat support 15% Somewhat oppose 49% Strongly oppose 8% Don't know Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 14
18 Demographics My last few questions are for classification purposes only! D1. What is your marital status? Are you currently. 63% Married 11% Divorced 2% Separated 11% Widowed 12% Or have you never been married? <.5% Living with a partner [VOLUNTEERED] <.5% Don t know D2. What is your age as of your last birthday? [RECORD IN YEARS] 44% % % 65+ 2% Refused D3. Are you or your spouse a member of A-A-R-P formerly known as the American Association of Retired Persons? [IF NOT MARRIED ASK, Are you a member ] 24% Yes 23% No 1% Don t know/not sure 52% Not applicable (Under age 50) D4. Thinking about your state elections for Arkansas Governor and Legislators in the last ten years, which of the following best describes your voting behavior? Would you say you always vote, sometimes miss one, rarely vote, or never vote? 62% Always vote 30% Sometimes miss one 5% Rarely vote 2% Never vote 1% Don't know/not sure Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 15
19 D5. What is the highest level of education you have completed? (READ) 10% Less than high school 28% High school graduate or equivalent 33% Some college or technical training beyond high school 16% College graduate 12% Or, Post-graduate or professional degree <.5% Don t know/not sure D6. Which of the following best describes your current employment status? Are you currently. 49% Employed full-time 6% Employed part-time 26% Retired and not working 3% Unemployed and looking for work 5% Homemaker 6% Disabled 2% Student 3% Or something else? [Specify: ] 0% Don t know/not sure D7. Now, for statistical purposes only, please stop me when I get to the category that includes your household s income before taxes in Was it (READ) 9% Less than $10,000 11% $10,000 but less than $20,000 16% $20,000 but less than $30,000 13% $30,000 but less than $40,000 11% $40,000 but less than $50,000 14% $50,000 but less than $75,000 13% or was your income $75,000 or more 3% Don t know/not sure 10% Refused D8. What is your 5-digit zipcode? D9. And, finally, may I verify that I reached you at: ( ) Thank you for participating! Your Opinion Counts. Respondent gender: 48% Male 52% Female [SKIP TO INTERVIEWER NAME] Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 16
20 Refusal Sequence R1. Thank you for your time anyway. Have a good night. Record GENDER of person who REFUSED Male Female Do Not Know R2. WHEN did person refuse: 1) During INTRODUCTION 2) During SELECTION OF RESPONDENT (Youngest Male/Oldest Female) 3) After HAND-OFF was made 4) OTHER [Specify: ] R3. Record up to THREE REASONS for refusal 1) Doesn't Do Surveys 2) Eating/ Having Dinner 3) Doesn't Have Time/Too Busy 4) Concerned About Privacy 5) Telemarketing or other Laws against surveys 6) No Opinion About Survey Topic 7) Not Interested in Survey Topic 8) Hearing 9) Person Refused for Someone Else 10) Other [Specify: ] R4. Was this a "HARD" refusal? 1) YES 2) NO HARD REFUSAL = Person HUNG-UP IMMEDIATELY Person was ANGRY Person was INSULTING or verbally abusive Person HUNG-UP while you were speaking R5. How COMFORTABLE would you be calling this person back? 1) VERY Comfortable 2) SOMEWHAT Comfortable 3) NOT VERY Comfortable 4) WOULD NOT call back Interviewer name: Date: Time end: Length of interview: Interviewer ID # Maintaining Health and Long-Term Care: A Survey on Arkansas Food, Medicine, and Soda Pop Tax 17
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