PRESS RELEASE

For Immediate Release March 21,  06

American Family Association of Arkansas

Forty-Two States Pay Less  in Total Taxes as Percent of Income Than Does Arkansas.

"Governor Mike Huckabee said Monday that he supported a set of proposed changes in state education law that include $309 million in increased school funding."  Some additional government employees would be added.  As legislators and Arkansans consider this information to determine their  position on this issue, the following information should be considered.

• The number of  government employees in the state grew by 10% from 1997 to 2004 and  salaries for government employees increased 74% from 1997 to 2004. ¹  These  figures do not include public school teachers and administrators.
• Arkansas ranks #49 among the states in per capita income. ²
• BUT Arkansas ranks 8th in the nation in the percent of income paid in total taxes.  In other words, Arkansans pay a larger portion of their income in all taxes combined  than do 42 other states in the nation.  ³
• Arkansas pays more in local and state revenue as a percentage of income than does Massachusetts. ⁴
• Arkansas ranks #1 in the nation in the amount allowed for state and local sales tax (up to 11.5 cents.) ⁵
• Arkansas ranked 9th in state tax revenue growth compared to income growth from 1992 to 2002.  In 2001-2002 Arkansas ranked 5th in the nation.  That was before the big tax increase in education in 2003. ⁶
• Arkansas was one of the three states in the country that raised taxes by more than 5% in 2004 according to the study by the National Conference of State Legislatures. ⁷
• A two-parent family of four living at the poverty line paid $406 in Arkansas state income tax in 2005, the third-highest in the nation. ⁸
• The state of AR is the largest employer in Arkansas with over 50,000 employees. ⁹

 See documentation below: 

Contact Person:

Bobby L. Hester

American Family Association of Arkansas

P. O. Box 9076

Jonesboro, Arkansas 72401

Phone 870-932-5065  Cell 870-243-5612

1.  Arkansas Democrat Gazette Jan 9, 2005 in a chart in an article by Michael Wickline, "Arkansas state government payroll"

Total Jobs Increase 1997-2004     4,662 (10.3%)

Total Salaries Paid Increase, 1997-2004 $1,103,221,692 (74.1%) Also confirmed by the Budget Office

2. Arkansas ranks 29th on income per capita in nation.http://www.taxfoundation.org/files/7aa0853f85671331ca0cfe2d1eb04bdd.pdf

 3. Arkansas ranks 8th in the nation in the percent of their income paid in total taxes.  http://www.taxadmin.org/fta/rate/04taxbur.html

4.  Arkansas pays more in local and state revenue as a percentage than does Massachusetts http://www.taxadmin.org/fta/rate/02stl_pi.html

5. Arkansas ranks #1 in the nation in the amount allowed for combined  state and local sales tax.  (up to 11.5 cents.) ⁵ http://www.taxadmin.org/fta/rate/sl_sales.html

6.  Arkansas ranked 9th in state tax revenue growth compared to income growth from 1992-2002. In 2001 to 2002 it ranked 5th in the nation in this area.    That was before the big tax increases in education. http://www.taxfoundation.org/taxdata/show/349.html

7.   Arkansas was one of the three states in the country to raise taxes by 5 percent in 2004  plus study finds.  From Arkansas News Bureau, "Arkansas one of three states to raise taxes by 5 percent-plus, study finds" by Doug Thompson, July 21, 04.

8. A two-parent family of four living at the poverty line paid $406 in Arkansas state income tax in 2005, the third-highest in the nation.    Arkansas Democrat Gazette, State's poor paying 3rd-costliest taxes, research group says, http://www.nwanews.com/adg/News/146820/ and original source for this article:

   http://www.cbpp.org/states/2-22-06sfp-fact-ar.pdf 

9.  Arkansas has 50,055 government employees in 2004 - Arkansas Democrat Gazette Jan 9, 2005 in a chart in an article by Michael Wickline, "Arkansas state government payroll"