TAX BURDEN: Fact Sheet - 8/28/92 August 28, 1992 U.S. AND ARKANSAS TAX BURDEN, 1983 VERSUS 1990 Between 1983 and 1990, the U.S. total federal tax burden increased by 3.0%. During the same period, the Arkansas total state tax burden increased 5.5%. In other words, the Arkansas total tax burden increased almost twice as fast as the U.S. total tax burden. The following table shows data for the U.S. and Arkansas in 1983 and 1990. Entries for the 1983 and 1990 columns show the total U.S. and Arkansas tax burdens -- total tax payments as a percentage of personal income: 1983 1990 Change % Change U.S. 22.56 23.24 + 0.68 + 3.0% Arkansas 6.41 6.76 + 0.36 + 5.5% (Sources: U.S. data -- Survey of Current Business, U.S. Department of Commerce; Arkansas data -- "A Fiscal Policy Report Card on America's Governors," CATO Institute, January 30, 1992). o It is important to note that statistics for U.S. tax burden include all federal taxes -- individual and corporate income, Social Security and Medicare taxes, and customs fees. Thus, the U.S. total tax burden has been cast in as bad a light as possible, including taxes like Social Security for which individuals will be repaid in retirement. Yet, despite this over-inclusion, the tax burden under Clinton in Arkansas has still increased faster. o These statistics demonstrate that either personal income in Arkansas under Governor Clinton did not increase to keep pace with tax rates, or that tax rates under Clinton increased faster than growth in personal income. # # #