Arkansas PoliticsTax Reform

Sorry Arkansas, Our Taxes Still Suck

I know y’all have already heard about the incredible tax cuts Arkansas passed last year — and that, combined with the immense, nearly immeasurable economic growth that’s coming from Medicaid expansion, we will soon be surpassing Texas’s economy. Unfortunately, our friends at the Tax Foundation have deflated these hopes and dreams.

According to the group’s latest report, Arkansas currently ranks #2 in overall sales tax burden. Number 2 — as in: the second most burdensome taxes in the nation. Out of all 50 states (or 57 states, depending on who’s counting).

Here’s a nifty map so you can see how we compare to our neighbors:


Just a year ago, Arkansas ranked 6th in the nation for worst tax burden.

I think this means we are moving in the wrong direction.

Of course our state legislature isn’t completely to blame: despite growing the state budget, they have reduced taxes in some areas. Much of the problem rests with interest groups like the Arkansas Municipal League who run around the state convincing cities and counties that the best way to promote economic growth is to, yes, raise taxes! City councils and quorum courts have been taking their (bad) advice for years. And here we are.

But not all hope is lost: AAI put a book out that’s full of great ideas about how the legislature can pursue meaningful tax reform that will spur real economic growth. I encourage everyone to check it out here. We’ll be producing an updated set of recommendations later this year.

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6 thoughts on “Sorry Arkansas, Our Taxes Still Suck

  • This is why the people of each state should come together, organize, and then all states combine forces and cause a revolution to take back what is ours, America. This government leadership is like a dictatorship and it needs to be sunken. I would participate with everything I have within me. The politicians are greedy and are traitors and are good for nothing but maybe alligator bait.

    • You ask for comments. I said exactly what I wanted to say. Where’s the freedom of speech. I will never say something somebody else thinks I should say. I will fight for what I believe everytime.

      • Linda, I’m really not sure what you mean by this comment. But thanks for reading!

  • David Witte

    This is why we need Curtis Coleman as Governor. He just released his Tax Reform plan today and he has details on how he wants to lower the state income tax every year for the next 8 years. He also has a plan on how to create jobs within this Tax Reform plan. None of the other candidates for governor have a clue on how to create jobs while lowering taxes.

  • Arkansas Toothpick

    That map is fascinating–note that 4 of the top 5 states in terms of HIGH sales taxes are contiguous with Arkansas right in the middle (Tennessee, Louisiana, Oklahoma). I don’t know if that is just coincidence or the epidemic spread of bad governance.

  • Charles Johnson

    I agree we need Curtis Coleman as Govenor. Why support a candidate annoited by the Republican Party that was a lobbyist from DC with DC connections. Or his counterpart, annointed by our friends in the Democratic Party the Arkansas voters has already rejected once. New ideas and a constitutional outlook would be fresh air to an overburdened state like ours. As Curtis has said “let Arkansas prosper”.


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