Revenue and Taxation
Yesterday was a great day at the state Capitol for school choice. And today will be another good day to hear some debate on Senator Johnny Key’s pro-school choice proposal (SB 65) in the Senate Education Committee. We encourage you to come on by if you are able.
With that said, during the House Revenue and Taxation committee meeting yesterday the Arkansas Department of Finance and Administration were going over various income and corporate taxes. Well, friends, this is as good a time as any to point out where Arkansas stands nationally when it comes to these taxes.
According to the Tax Foundation Arkansas ranks as follows:
Individual Income Tax
Arkansas’ individual income tax system consists of six separate brackets with a top rate of 7% kicking in at an income level of $33,200. That top rate ranks 13th highest among states levying an individual income tax.
That’s right, folks. 7% tax rate while only making $33,200.
Corporate Income Tax
Among states levying corporate income taxes, Arkansas’ top rate ranks 29th highest nationally. In 2010, state-level corporate tax collections (excluding local taxes) reached $132 per capita, which ranked 17th highest nationally.
Do you think the Arkansas Legislature should look into decreasing, phasing out, or eliminating income and/or corporate taxes in the state? Our surrounding states are pretty far ahead of us and we must be able to compete with them. What would you propose?