“Capital flight is an economic problem in Arkansas. Entrepreneurs have fled Arkansas, which has the highest top income tax rate (6.9) among border states. Three in the region … do not levy an individual income tax.” Policy Foundation column, Arkansas Democrat-Gazette, December 28, 2018
(January 2019) Various factors such as a skilled work force, infrastructure and tax rates influence economic development. The current economic expansion started in mid-2009. How does Arkansas’ performance fare versus the region? Payroll employment is the broadest state-level economic indicator. U.S. Bureau of Labor Statistics (BLS) data1 show job-creation rates in Texas (23.1 percent), Florida (22.9 percent) and Tennessee2 (18.7 percent) outpace Arkansas (8.0 percent) in the current expansion, which dates to June 2009.3 The three do not levy a state income tax.
| State | June 2009 | November 2018(p)4 | Growth Rate |
| Texas | 10,320,600 | 12,703,400 | 23.1% |
| Florida | 7,222,000 | 8,873,000 | 22.9% |
| Tennessee | 2,602,600 | 3,089,000 | 18.7% |
| South Carolina | 1,809,100 | 2,138,000 | 18.2% |
| Georgia | 3,898,300 | 4,581,200 | 17.5% |
| North Carolina | 3,894,400 | 4,537,900 | 16.5% |
| Kentucky | 1,754,200 | 1,940,200 | 10.6% |
| Virginia | 3,652,200 | 4,031,700 | 10.4% |
| Oklahoma | 1,565,500 | 1,704,200 | 8.9% |
| Missouri | 2,685,400 | 2,911,900 | 8.5% |
| Alabama | 1,901,900 | 2,054,800 | 8.0% |
| Arkansas | 1,161,400 | 1,254,100 | 7.98% |
| Mississippi | 1,096,200 | 1,172,800 | 7.0% |
| Louisiana | 1,897,000 | 1,991,100 | 5.0% |
| West Virginia | 749,400 | 753,600 | 0.6% |
| –Greg Kaza |
