Who do you trust to handle your money: the government or yourself? It’s clear that individuals manage their money far better than any politician ever could. That’s why I made a commitment to responsibly phase out our state income tax upon entering office. In my first year, I collaborated with our legislature to cut taxes twice, returning over $300 million to hardworking Arkansans. This is about empowering individuals, not expanding government control.
This week, I convened a special session of the Arkansas legislature to push for another round of tax cuts. In a rare moment of bipartisan cooperation, Republicans and Democrats agreed to reduce personal income tax by $384 million and corporate income tax by nearly $100 million. This puts almost half a billion dollars back into the pockets of the people of Arkansas. This significant tax relief benefits 1.1 million Arkansans, representing the majority of our state’s taxpayers.
Consider a young couple, both starting their careers as public school teachers. Thanks to Arkansas LEARNS, their starting salaries are now $50,000 each. With the three tax cuts I’ve signed, they will take home an additional $954 each year. This extra money can be used for rent, car payments, or grocery bills. More importantly, it’s more money circulating in our economy, stimulating growth and prosperity. This is the essence of conservative economic policy: allowing individuals to keep more of their hard-earned money to fuel economic expansion.
Arkansas’ economy is at a crucial juncture. On the positive side, our pro-growth policies have led to record employment, population growth, and an improved credit rating from S&P, which upgraded Arkansas’ outlook from “stable” to “positive.” However, we also face significant challenges due to economic mismanagement in Washington. Since President Biden took office, prices have surged by 20%, creating an inflationary spiral reminiscent of the Jimmy Carter era. The average Arkansas family now pays nearly $800 more per month for the same goods and services compared to when Biden took office. Eggs, chicken, and bread have all seen substantial price increases.
In contrast to the economic chaos in Washington, we have exercised fiscal discipline in Little Rock. In my first 18 months in office, we slowed the growth of government spending to just 1.76% annually, well below our historical average of 3%. These savings have been passed along to taxpayers, reducing our state income tax to 3.9% and our corporate income tax to 4.3%. With more money in their pockets, Arkansans are better equipped to handle the rising cost of living. Our state, once losing families and businesses to zero-income-tax states like Tennessee and Texas, is now attracting them back. Today, Arkansas has the lowest income tax rate among Southern states that levy one.
This favorable economic climate is drawing businesses and people to Arkansas. Mississippi County is now the top steel-producing county in America, Camden is home to expanded defense company facilities, and Walmart is completing its new and expanded headquarters in Bentonville. Just last week, I celebrated two business expansions in Central Arkansas, totaling over $330 million in investments and paving the way for more than 900 jobs. My administration’s efforts secured over $1 billion in investment last year alone. Polls indicate that Americans are fed up with Democratic mismanagement in Washington. There is a better way: fiscal responsibility, smaller government, and lower taxes. This approach is working in Arkansas, it’s working in other Republican-led states, and it can revive our national economy if implemented in Washington.
