Rep. Charlie Collins, R-Fayetteville, has come under fire from the state Democratic Party for a Jan. 5 letter to the editor published in the Arkansas Democrat-Gazette.
In the letter responding to an editorial in the newspaper, Collins said wages in Arkansas have stagnated since state income tax rates rose in 1971.
“If we had left tax rates alone in 1971 and remained on the pre-tax-rise trend, the Arkansas Policy Foundation found that Arkansas median incomes would be at or above the national average by now,” he wrote.
Collins argued for eliminating the 2.5 percent and 7 percent rates.
“This approach lowers the rate by 60 percent on low-income workers and 14 percent on workers making more than $33,000,” he wrote.
Collins also wrote, “We’re regularly ranked near the bottom of all states for median income. We haven’t made substantial progress in decades.”
In a news release issued Thursday, Democratic Party spokeswoman Candace Martin said politicians shouldn’t use the sluggish economy “as an excuse to falsify facts or mislead Arkansans.”
“Rep. Charlie Collins condemned Arkansas for making no economic progress when in reality USA Today ranked our state 11th in the nation for personal income growth,” she said.
Collins is expected to announce soon that he is seeking re-election in House District 84 to a second two-year term. The only announced candidate is Democrat Adella Gray, a Fayetteville City Council member.
Candidates have from noon on Feb 23 to noon on March 1 to file for election.
I welcome AR Dems to the discussion about turning AR into a Good Jobs Magnet by cutting the income tax on working people. AR median incomes grew from 44% to about 75% of national incomes over a period of 30-35 years, outpacing national income growth dramatically for 3+ decades. My point is that this progress stopped when we increased the income tax 40 years ago (long before Candace Martin was born, so nothing personal).
According to 2011 Arkansas Labor Market and Economic Report page 7 (published by Department of Workforce Services), US Census data has 2009 AR median Household income at 75.4% of national or comparing to the 78% per capita figure the DPA cites in the press release for that period, the trend we were on before the tax hike would have put us at or over 100%. Can we agree that the size of the prize for Arkansas families is large, using either set of numbers if we can lower the income tax rate?
Also, while I applaud all improvements and am excited for Arkansas, I know we can do better than 44th place. The growth in median income in the most recent year to 82% of national is encouraging. Success like 20.6%* 2010 job growth in the AR Oil and Gas Extraction Industry (Fayetteville Shale driven primarily) in a tough global economy was a contributor to that result.
Let’s build on the momentum by lowering the labor cost in our state and putting more of each worker’s paycheck in his or her pocket by simplifying and reducing our income tax to a level competitive with surrounding states.
*US Census Bureau data, same Dept of Workforce Services Document
Thank you,
Charlie Collins
(R- Fayetteville)