Texas has so many additional taxes that its burden is actually higher than California’s for middle-class people.
— Matthew Sheffield (@mattsheffield) May 23, 2021
Trumplican dogma in Arkansas now holds that you could eliminate the state income tax, which produces more than a third of state general revenue, and still operate state government.
None of the politicians espousing this theory — proven a disaster in Kansas — provide any specifics on how services are continued with the loss of $2 billion a year at current levels. Efficient government is about the best they’ve got.
Should you ever encounter Sarah Huckabee Sanders in person or get a chance to question Leslie Rutledge, Tim Griffin, Trent Garner or the other income tax fabulists, you might ask them if they’ve seen this information about much-cited Texas. Texas makes up for lack of income tax with a high property tax and a variety of other fees that hit the middle class hard. They also enjoy a windfall from oil and gas production.
Facts? Who needs ’em in Darkansas?
Here’s some more from a Bloomberg writer on the subject.
Lower-income people have been leaving California for places like Texas, it’s true. And taxes on the rich in California are decidedly higher. But:
it’s awfully hard to argue that taxes have been the main thing driving the California exodus, given that (1) it has been concentrated among the less affluent, (2) their No. 1 destination has been Texas, according to 2010-2018 Internal Revenue Service data that I tallied up early last year and (3) lower-income and middle-income people face higher effective tax rates in Texas than in California.
Our income tax rate in Arkansas, by the way, is already very attractive to millionaires compared with California — topping out at 5.9 percent versus 12.3 percent (it’s 9.3 percent for income over $58,000 in California). We have no estate tax. California will take a bite from estates worth more than $11.58 million. And still the rich prefer to live in California. Perhaps we’d do better in Arkansas to focus on why that might be than to further deplete poor public services with still more tax breaks for the ultrarich.