Over time, the state's tax code has become riddled with loopholes and exemptions to benefit the few, while income and capital gains tax rates have grown to the highest in the region. These high tax rates have had a detrimental effect on capital formation, high-wage job growth and productivity.
Not only are Arkansas' tax rates (Income tax 7 percent) high when compared to neighboring states, but objective measurements of the taxes Arkansans pay as a percentage their incomes show that the state's citizens are working a lot of hours to pay their tax bill. Growing wages and lowering the tax burden is the answer.
Higher taxes are not only a drag on the state's citizens and the broader economy, but they mask the state's economic condition by making things appear rosy when they're not. The major accepted measurement of economic weakness or strength is the government's revenue reports.