2026 Policy Agenda

Arkansas has made meaningful progress in reducing the state income tax rate, but AFP Arkansas believes the ultimate destination is clear: zero. The Pathway to Zero initiative would codify automatic, trigger-based income tax reductions tied to measurable fiscal benchmarks, such as sustained revenue growth and recurring budget surpluses. This approach ensures that reductions proceed responsibly — only when the state’s fiscal position supports them — while maintaining a steady, credible trajectory toward a more competitive tax environment. Arkansas citizens, not government, are best positioned to decide how their earnings are invested. A zero income tax rate would accelerate economic growth, attract new businesses and residents, and put more money directly in the hands of the people who earned it.