When the Arkansas General Assembly convenes in December to reform the state’s education system, they will have tough choices to make about how to pay for these reforms (estimated
at $847 million). One of the options the legislature will likely consider is raising the corporate income tax.

• What would be the impact on state economic development?
• Would it hurt the economy as some would claim, or would it provide new revenue for education that would fuel long-term state economic growth?
• Who would bear the burden of a corporate tax increase?