“Arkansas cannot afford income tax cuts.”

Arkansas can afford responsible, phased-in reductions when they are paired with strong reserve requirements and revenue triggers. Well-designed tax reforms rely on economic growth—not optimistic guessing—to fund each step. Arkansas currently maintains healthy reserves, consistent revenue growth, and one of the most stable budget positions in the region. When tied to real fiscal benchmarks, incremental tax cuts are entirely affordable.

“Income tax cuts will lead to cuts in state services.”

Not when structured correctly. Growth-driven tax relief only occurs when revenues and reserves meet conservative thresholds, ensuring education, healthcare, public safety, and other core services remain fully funded. States like North Carolina and Tennessee successfully reduced income taxes while increasing investment in key services because expanded economic activity broadened the revenue base.

“Income tax cuts will create chaos in state government.”

Instability comes from unpredictable budgeting—not from disciplined tax policy. Trigger-based reforms actually increase predictability by tying every reduction to measurable fiscal conditions. This approach provides agencies, lawmakers, and taxpayers with clear expectations about when changes can occur.

“Income tax cuts endanger the health and well-being of Arkansans.”

A stronger economy improves well-being. When families keep more of what they earn and businesses face fewer barriers to expanding and hiring, communities benefit. Responsible tax reform—grounded in guardrails and focused on growth—supports higher take-home pay, more job opportunities, and long-term prosperity for Arkansas households.

“Income tax cuts conflict with the Arkansas Constitution's balanced-budget requirement.”

The balanced-budget requirement remains fully intact under responsible tax reform. Triggered reductions ensure taxes only fall when revenues and reserves justify it. This prevents deficits and automatically aligns tax changes with the state’s constitutional obligations.

“Revenue surpluses used to pay for income tax cuts are just a temporary economic fluke.”

Arkansas has recorded multiple years of surpluses before, during, and after federal stimulus periods. While stimulus affected collections nationwide, Arkansas’s strong revenue performance is also the result of conservative budgeting, population growth, and an improving business climate. These trends indicate structural strength, not a short-term anomaly.

“Revenue surpluses are a forecasting trick by economists.”

Arkansas uses widely adopted, nonpartisan forecasting practices comparable to those in many other states. Surpluses have occurred consistently because the state’s economy has performed well—not because of accounting gimmicks or manipulated projections.

“Surpluses are only because of federal stimulus spending from the Trump and Biden administrations.”

Stimulus did temporarily boost collections, but Arkansas’s surpluses began before stimulus programs and continued after those effects diminished. States with prudent budgeting and growing economies—Arkansas included—have maintained above-forecast revenues even as federal support receded.

“Income tax cuts endanger Arkansas’s credit rating.”

Credit rating agencies look for stable reserves, balanced budgets, and predictable fiscal policy. A trigger-based framework reinforces all three. Other states that implemented gradual, structured income tax reductions—such as Utah, North Carolina, and Tennessee—maintained or improved strong credit ratings because their reforms emphasized stability and guardrails.

“There is no evidence that income tax cuts improve economic performance.”

Research across states shows that lower income tax burdens can increase investment, attract new residents, expand the labor force, and encourage small business formation. States with no income tax—such as Texas, Florida, and Tennessee—consistently rank among the nation’s leaders in job creation, population growth, and new business activity. While tax policy is not the only factor, it plays a measurable role in competitiveness.

“Income tax cuts are a giveaway to the rich, and they require raising taxes on the poor.”

This is not the case with a responsibly designed reform plan. Structured approaches often include raising the standard deduction, simplifying brackets, and protecting lower-income taxpayers from any increase. A predictable, flatter system can benefit workers, families, and small businesses while maintaining protections for vulnerable households. Growth-driven reforms can expand opportunities across all income levels.