Smaller GovernmentTax Reform

Sales Tax Study: We’re Number Seven! We’re Number Seven!

Tax Foundation state and local sales tax map
Click for closer look at Tax Foundation map

A new study from the nonpartisan Tax Foundation ranks states for combined state and local sales tax rates, and ye olde Natural State checks in with one of the lowest rates in the nation!

No, of course that’s not true. Arkansas clocks in with a combined state and local sales tax rate of some 8.5 percent, putting us at number 7 in the entire United States. Hooray!

But fear not! Your state and local governments are hard at it putting taxpayer dollars to work on behalf of the people, with a deep commitment to careful oversight and accountability.

Or perhaps not.

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3 thoughts on “Sales Tax Study: We’re Number Seven! We’re Number Seven!

  • David,

    Thanks for the great coverage on AR high taxes and other subjects. Let me know when you are ready to talk about the top job killing tax– The income tax. AR has a top rate of 7% on working folks making about $33K. That’s higher than any state that borders us.

    We’re regularly ranked near the bottom for median state income (measure of good jobs). We haven’t made substantial progress in decades. It wasn’t always this way. From about 1940 to the early 70’s AR improved from about 44% of national per capita income to about 75%– Huge progress in 30+ years. Then we jacked our income tax throught the roof in 1971 (top rate up 40% from 5% to 7%) and progress stopped. Today our per capita income remains in the 75% range– No progress for decades, since the new rates smothered growth. If we had remained on the pre tax hike trend, AR per capita income would be ABOVE the national average by now.

    I’ve outlined a plan to cut the tax on work and turn AR back into the Good Jobs Magnet we are meant to be!

    Charlie Collins

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