The capital gains tax presents the state with enormous budget concerns.  According to the state Department of Finance & Administration, eliminating the capital gains tax stands to cost the state $65 million in revenue.  That means less investment in Arkansas’s future.

Research consistently shows that tax breaks like this do nothing to lure businesses to the state or stimulate job growth by existing businesses. This is nothing more than yet another tax break for the extremely wealthy.

If the capital gains tax is removed, four out of five Arkansans will see little to no financial benefit.

If the capital gains tax is removed, the top 1 percent of Arkansas tax payers will split almost $50 million in tax savings, robbing middle-class families of investments in their communities like schools and health care.

Arkansas already has one of the most generous capital gains tax codes in the country. There is no critical need to eliminate this state revenue stream.

There is no guarantee–or even evidence to suggest–that those who benefit from the elimination of the capital gains tax will reinvest their money in Arkansas. Eliminating the capital gains tax gives people greater ability to invest outside of Arkansas, hurting our state’s economy.