Low Taxes = More Jobs
Arkansas is 2nd highest in the tax rate on new investments among 8 central and south-central states, according to an Arkansas State Chamber of Commerce report released to legislators in November, 2011.
Comparing all industry sectors, Louisiana — with an overall effective rate of 12.7% — is the highest and Arkansas is second with its 11.5% rate. Texas, at 9.1%, is lowest. Across the 8 states (Arkansas, Louisiana, Mississippi, Tennessee, Missouri, Kansas, Oklahoma, Texas), the average tax burden was 10.8%.
Such a tax policy makes it difficult to attract high quality, stable companies to our state as compared to our neighbors.
Low taxes “stimulate” the economy in a real way that the mere printing of money does not. Low taxes attract high quality businesses providing jobs for people who want them and so putting money back into local economies.
We urge our State Legislature to keep this thought in mind when they’re working with Arkansas’ financial situation over the next year or few.