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Ethics Reform: Expand Lobbyist Transparency  

The Policy Foundation’s interest in ethics reform dates to 1998 when it made recommendations to prevent double-dipping in terms of compensation.  Double-dipping has reemerged in the past year following media reports that Arkansas government officials returned to work after “retiring” to draw taxpayer-funded salary and retirement benefits.  A lack of transparency, in this episode contributed to the problem. […]

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Continue to Phase-Out the Grocery Tax

Democratic Gov. Mike Beebe in 2007 proposed a 50 percent reduction in the state sales tax on groceries. The tax cut, enacted by the General Assembly reduced the grocery tax from six to three cents. The grocery tax was reduced from three to two cents in 2009.  Gov. Beebe would like to cut the grocery tax by […]

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ARKANSAS EMPLOYMENT AT 2004 LEVEL Job Losses Follow 4 Years of Subpar Growth

“The long-suffering people of Arkansas deserve policies that create a vast, stable and prosperous middle class, not ideas that create more poverty. They deserve the opportunity to achieve the American dream through good-paying private sector jobs that provide upward mobility.” Policy Foundation, „Road Map for Arkansas Prosperity‟ (December 2008)   (June 2010) Total Arkansas payroll […]

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THE ARKANSAS INFORMATION ECONOMY OBSTACLES AND OPPORTUNITY

Economic Overview   Information is classified by the U.S. government as a private service- providing sector.   The sector, despite adjusting for recession, has barely grown in a two- decade period. There were 17,200 Information sector employees in Arkansas in January 1990 when the employment time series began. The Information sector employed 17,800 in December […]

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Reduce State Income Tax Rates

The following chart prepared by the Federation of State Tax Administrators shows that the Arkansas state income tax rate (top bracket) is higher than the six states that share its border: State Top Rate Arkansas 7.0% Louisiana 6.0% Missouri 6.0%  Oklahoma 5.5% Mississippi 5.0% Tennessee Income tax limited to dividends and interest Texas No state […]

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Use Dynamic Analysis in Revenue Estimation

  Dynamic analysis is an attempt to measure the full impact of fiscal policy revisions, including tax proposals, on revenue estimates. It can also provide legislators with more information when considering fiscal proposals. One example is the 2008 increase in the severance tax. The state revenue estimate was based on an $8 natural gas futures contract […]

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