Of all the possible forms a tax can take, an income tax is one of the worst. The income tax is a tax on productivity. The income tax is the government telling people “If you work harder, I will take more of your money.” It is not a good thing. There are many alternatives to an income tax. The government could replace it with a value-added tax on sold goods, or maybe even tariffs. Economists debate often about the best course of action. One reliable option is to simply reduce government spending. Income taxes should go down, and there is no excuse. Lower income taxes also drive economic growth, which is why Arkansas Governor Sarah Huckabee Sanders decided to take the hammer to the state income tax in June.
George Behizy posted on X that “Arkansas Governor Sarah Huckabee Sanders has signed a law drastically reducing property & income taxes, and plans to get rid of the income tax altogether soon.”
He continues to state “This is her third tax cut as governor and has done so without cutting any agencies, foolproof that government is forced to be efficient the less money it collects to spend. Specifically, the law will reduce the state’s top income tax rate from 4.4 percent to 3.9 percent and the top corporate rate from 4.8 percent to 4.3 percent.”
The people of Arkansas should rejoice. They will get to keep more of the money that they made going forward. The state will also get wealthier. Lower corporate taxes will allow more business to develop across the state. Behizy concludes: “This is what red states need to be doing. There are no good excuses why states like Arkansas can’t be attractions for the biggest businesses in the world. The best way to bring wealth to an area is to make the government broke and efficient.”
This post originally appeared at https://www.phyllisschlafly.com/constitution/taxes/arkansas-reduces-the-income-tax/
