There has been much discussion in this legislative session about how to provide tax relief for low-income families. Two proposals are currently being debated in the legislature. One is to immediately cut the grocery tax by 3% and gradually phase it out completely in future years. The second proposal is to establish a state earned […]
In February 2005, President Bush signed the Deficit Reduction Act (DRA) of 2005 which was the result of the administration’s call to reduce federal spending by approximately $35 billion by 2010. Medicaid, one of the nation’s largest federally funded programs, was an obvious target. Since Medicaid was an entitlement program, across the board cuts could […]
What is a rainy day fund? A rainy day or budget stabilization fund is similar to a savings account for a family. You put aside a little extra cash each month so that in an emergency you don’t have to use money that you need for basic expenses such as food or rent. This philosophy […]
The current Arkansas budget surplus, which is expected to be between $800 and $900 million, provides a unique opportunity to have a public debate about severance tax reform. Arkansas’ severance tax is the lowest in the country. Unlike most states which levy severance taxes based on market value, Arkansas’ severance tax on natural gas is […]
Over the past two decades, the benefits of economic growth have been skewed heavily in favor of Arkansas’ wealthiest families. Income inequality is shown by dividing the population into five categories by income level with 20 percent in each. By doing so, the research shows: From the early 1980s to the early 2000s, adjusted for […]
The average ($500) payday loan comes with an interest rate on the high side of 500 percent APR (Annual Percentage Rate) for 14 days. Comparatively, the average credit card cash advance from a bank-issued card carries an interest rate close to 100 percent APR for 14 days while a cash advance from a credit union […]
Widgets, Inc. has the hottest New Gadget to hit the market in an age. Widgets has stores in Louisiana, Illinois, New York, and Georgia, but has not yet opened a “bricks and mortar” store in Arkansas. Mr. Hitech lives in Jonesboro and the New Gadget is at the top of his wish list. He doesn’t […]
A report released today by Arkansas Advocates for Children and Families (AACF) describes how Arkansas families are faring after the recession and subsequent economic recovery that have gripped the U.S. for the first half of the decade. The 2005 State of Working Arkansas analyzes these recent economic trends and details how Arkansas families are faring […]
The last six years have been an unpredictable rollercoaster ride for the Arkansas economy, Arkansas workers, and families. During the last part of the 1990s, a thriving national economy led to near record employment (by recent historical standards), growing wages for most workers and families, and flush tax revenues for most state governments. This was […]
Congress was still in session late in December, 2005 debating the USA Patriot Act, drilling in the Arctic National Wildlife Refuge, and how to fund the federal government for the next fiscal year. Congress is rarely still in session that late in December – a telling sign, not only of the importance of the issues […]