Why Do Arkansas’s Business Taxes Now Rank 46th out of the 50 States?

By Caleb Taylor Arkansas dropped three spots from 43rd to 46th from 2018 to 2019 in the Tax Foundation’s annual Small Business Tax Climate Index. The report was released on September 26th and is authored by the Tax Foundation’s Jared Walczak, Scott Drenkard and Joseph Bishop-Henchman. According to the authors, the index is “designed to […]

Legislators Move on Proposals from ACRE’s “Road Map to Tax Reform”

By Caleb Taylor Arkansas Tax Reform & Relief Legislative Task Force members voted August 22nd to approve a report that recommends reducing the top personal income tax rate to 6.5 percent, consolidate its three rate schedules, and more. The top personal income tax rate is currently 6.9 percent. The plan would cut taxes for individuals […]

Stepping Back from the “Tax Cliffs”: Tax Reform Plans Take Shape for Arkansas

By Caleb Taylor Legislators took a big step towards finalizing their tax reform priorities for the 2019 session. Arkansas Tax Reform & Relief Legislative Task Force members voted August 7th to pursue a comprehensive tax reform proposal that would reduce the top personal income tax rate to 6.5 percent and consolidate its three rate schedules. […]

Tax Reform Task Force Takes a Good Look at 3 Ways to Cut the Income Tax

By Caleb Taylor And then there were three. Three tax reform proposals were selected by the Arkansas Tax Reform & Relief Task Force as worthy of further study by outside consultants on June 26th. Income Tax Proposals The three proposals include a plan previously announced by Gov. Asa Hutchinson and two new plans. Hutchinson’s plan […]

The Supreme Court Just Handed States a New Power to Tax. Should Arkansas Use it?

By Caleb Taylor Will a recent Supreme Court decision on state taxation of remote online sales (like through Amazon or Etsy) help or harm Arkansas’s recent tax reform efforts? ACRE Scholar and UCA Assistant Professor of Economics Jeremy Horpedahl was quoted in two statewide outlets on Thursday, June 21st about the effect of the South […]

Arkansas’s Property Tax is Low, But What Does That Mean For Income and Sales Tax Rates?

By Caleb Taylor Arkansas has the third highest combined state-local sales tax rate in the nation and the highest personal income tax rate of its surrounding states. But there is one area of taxation where Arkansans enjoy a relatively low burden: property taxes. According to the Tax Foundation, Arkansas has the third-lowest state and local […]

Learning From Other States On Tax Reform

By Caleb Taylor What can Arkansas learn from other states’ work on tax reform? UCA Assistant Professor of Economics and ACRE Scholar Jeremy Horpedahl and Nicole Kaeding, Director of Special Projects at the Tax Foundation, answer this question and more in a just-released research paper Learning from Other States’ Successes and Failures in Tax Reform. […]

Sales Tax Exemption Gimmicks Mask High State Income Taxes

By Caleb Taylor Arkansas should consider ending its counterproductive tax-exemptions, and instead lower income taxes, according to ACRE Scholar and UCA Assistant Professor of Economics Dr. Jeremy Hopedahl. Horpedahl discussed the latest tax-policy news on Capitol View this Sunday with Jessi Turnure, KARK Political Correspondent. Topics included the grocery tax exemption, back-to-school sales tax holidays, […]

Out of 43 recommended tax reforms, legislators move forward on only 7

By Caleb Taylor Seven. That’s the number of sales tax exemptions members of the Arkansas Tax Reform and Relief Legislative Task Force recommended for further study on April 25th and 26th. Sales Taxes According to a Department of Finance & Administration report, there are currently at least 115 state sales tax exemptions. Some of these […]

‘Road Map to Tax Reform’ Co-Author Kaeding to Discuss Income Taxes Thursday

By Caleb Taylor Is it time to reduce Arkansas’s income taxes? Nicole Kaeding, Arkansas: The Road Map To Tax Reform co-author and Director of Special Projects for the Tax Foundation, will speak to members of the Arkansas Legislative Tax Reform and Relief Task Force about reforming Arkansas’s income taxes on Thursday, April 26th. Arkansas: The […]