Marching Toward Zero: Arkansas Senator Jim Dotson at the ALEC Annual Meeting

When Arkansas broke into the top 10 of ALEC’s Rich States, Poor States economic outlook rankings for the first time, State Sen. Jim Dotson called it “an awesome thing.” But, as he explained at the 52nd ALEC Annual Meeting in Indianapolis, the real goal is zero – as in zero state income tax.

“We’ve cut our top rate from 7 percent to 3.9 percent in the last 13 years,” Dotson said. “The march continues.”

That march, he stressed, isn’t about flipping a switch. Arkansas still has to fund core responsibilities like schools and roads without the luxury of running deficits like the federal government. After all, it’s not as if they can print their own money. Instead, they must rely upon a strategic plan of attack.

“It takes a methodical approach,” Dotson explained, pointing out that every percentage point cut from the income tax now represents a much larger share of the state’s total budget than it did a decade ago.

The challenge is a touch more difficult thanks to Arkansas’s unique tax mix. The state has some of the lowest property taxes in the country, but one of the highest sales taxes. Income tax and sales tax each account for roughly half of state revenues, so cutting one requires growth in the other.

“It is kind of like the Laffer Curve. When you lower the rates, you get more revenue coming in with the remaining rate because you’ve broadened the base.”

Growth, Dotson believes, comes from making Arkansas a more attractive place to invest and work. That means regulatory reform, smarter spending, and investing in quality state employees.

“We reduced the regulatory rules on the books by 25 percent,” he said. “It was 15,000 pages of red tape – a stack of paper as tall as me. If you make it easier to do business, more people come, buy more things, and you grow your sales tax base.”

The senator’s record also extends deep into education policy. Arkansas has long allowed students to transfer between districts. This year, lawmakers expanded that freedom to allow transfers within the same district if space is available. With charter schools, private school options, and a growing education freedom account program, Arkansas offers families a “robust menu” of choices.

“I deal a lot in the education arena,” he said. “That’s one of the things that I’ve been focused on for the last several years.”

Dotson has been an ALEC member since 2013, state chair since 2017, and board member since 2021. He credits ALEC with providing policy tools and real-world experience that help Arkansas advance education policy and more.

“You have access to a wealth of experience from legislators all across the country who have dealt with the same issues,” he said. “Maybe ran their head into the same brick walls that you’re running into and successfully got past it. Or maybe they haven’t, and they can tell you what did or didn’t work.”

For Dotson, it’s all part of the same march. A steady push to make Arkansas a place where economic growth is built on common sense and sound policy. As tax rates fall, red tape clears, and education options expand, he sees a future where the state’s competitive edge is an opportunity every Arkansan can count on.