Why does Arkansas have such a high sales tax rate?

By Caleb Taylor Arkansas is tied with Tennessee for having the highest average state and local sales tax rate at 9.47 percent, according to a midyear 2019 state and local sales tax report by the Tax Foundation. ACRE Scholar and Assistant Professor of Economics Dr. Jeremy Horpedahl discussed the relationship between Arkansas’s high sales tax […]

The Next Steps for Arkansas’s Tax Code

By Caleb Taylor Arkansas legislators made many improvements to the tax code during the 2019 legislative session, but is there more to be done? ACRE Scholar and UCA Assistant Professor of Economics Dr. Jeremy Horpedahl and the Tax Foundation’s Vice President of Federal and Special Projects Nicole Kaeding answer in the affirmative in “Talk about […]

ACRE Scholar Quoted on State Tax Code Changes

By Aaron Newell Comprehensive reforms – not special tax incentives – are key to making Arkansas a  more economically competitive state says Jeremy Horpedahl, ACRE Scholar and UCA Assistant Professor of Economics, who recently discussed Act 822 with Paul Williams at Law360. This act, sponsored by Sen Bart Hester (R-Cave Springs) and signed by the […]

Arkansas’s Tax Code Gets an Update

By Caleb Taylor What were the major tax reforms passed by Arkansas legislators during the 2019 session? ACRE Scholar and UCA Assistant Professor of Economics Jeremy Horpedahl and the Tax Foundation’s Vice President of Federal and Special Projects Nicole Kaeding outlined the recent “series of tax reforms to improve the competitiveness of the state’s tax […]

The Costs of Special Elections

By Aaron Newell On February 13th, Rep. Justin Gonzales, R-Okolona, presented House Bill 1402 in front the House State Agencies Committee, which would limit special elections to just two dates a year – either at a primary or general election, or their corresponding dates in off years. Dr. Jeremy Horpedahl was invited to testify to […]

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 […]