Smart Talk Feb. 10 

And the winner is … Belatedly, we’re pleased to announce the winner of the Arkansas Times Governor’s Photo Contest at the Arkansas State Fair last fall. The picture “Boy on dirt road” by Marianne Vollmer of Ward. She won $75 and a blue ribbon for the shot, chosen from among 79 entries. Avoiding the tax man Arkansas’s state financial woes stem in part from the increasing success of corporations at avoiding paying state income tax. This is a national trend. The Citizens for Tax Justice reported last week that 252 of the country’s largest and most profitable corporations avoided paying state taxes on about two-thirds of their pre-tax profits. In other words, where the state income tax rate was 6 percent, corporations paid an effective tax rate of only 2 percent of their reported profits. The percentage has been dropping steadily. The change has had dramatic impact. According to Citizens for Tax Justice, the share of Arkansas’s gross state revenue produced by corporate taxes dropped from 31 to 24 percent between 1989 and 2003. On average nationally, corporations shouldered 29 percent of the state tax payments. Arkansas-based corporations among the 252 largest reflected the trend in the years 2001-2003. (Dillard’s in 2003 and Alltel in 2002 paid no state income taxes in Arkansas despite millions in profits, according to the report.) The top income tax rate in Arkansas is 7 percent, payable on taxable earnings above $25,000 for individuals. Here’s what our biggest corporations paid as a percentage of profits: Company 3-year profit 3-year tax Ave. tax rate Dillard’s $359 mil. $2 mil. 0.5 percent Alltel $4,592 mil. $91 mil. 2.0 percent Wal-Mart $31,733 mil. $818 mil. 2.6 percent Tyson $1,189 mil. $32 mil. 2.7 percent He sure sounds like he’s running There’s a bit of Bill Clinton in Mike Huckabee. We mean that the governor has a desire and a knack for getting national media attention. And why would you try so hard if you weren’t making future plans? Example: He was interviewed by Brian Lamb for an hour on C-SPAN “during one of my recent visits to Washington,” the governor has announced. The result will show at 7 p.m. Sunday and again at 10 p.m.


Subscribe to this thread:

Add a comment

More by Max Brantley

More by Arkansas Times Staff

Most Shared

Latest in Smart Talk

  • Better than Texas

    Arkansas's tax system is slightly more friendly to the poorest people, but only slightly.
    • Aug 24, 2011
  • Small-school champions

    Two Arkansas congressmen are among the 14 sponsors of a bill that would "correct" a provision of the federal school-funding formula they say favors large school districts over small districts.
    • Aug 24, 2011
  • Bipartisan race

    The rise of Republicanism in Arkansas has brought a rare two-party race to the state Senate in Southeast Arkansas, traditionally a Democratic stronghold.
    • Aug 24, 2011
  • More »

Visit Arkansas

Logoly State Park dedicates new visitors center

Logoly State Park dedicates new visitors center

Arkansas’s first environmental education state park interprets the importance of the natural world and our place within it.

Event Calendar

« »


2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31  

Most Viewed

Most Recent Comments


© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation