We Punch Above Our Weight in Arkansas – Rep. David Ray at SNPS

Washington, DC – When it comes to preparing for the 2025 legislative session, there was no better place to be than the American Legislative Exchange Council’s (ALEC) States and Nation Policy Summit. With a high-powered lineup of speakers, including Vivek Ramaswamy and renowned pollster Scott Rasmussen, the event drew legislators from across the country. Among them was Arkansas State Rep. David Ray, who shared key insights on what to expect in Little Rock this year.

“We punch above our weight in Arkansas, we really do,” Ray said with a grin, listing off notable Arkansans such as Al Green, Johnny Cash, and Sam Walton. But it’s not just the famous names that put Arkansas in the spotlight—the state’s recent tax-cutting success is earning national attention as well.

“We cut our personal income tax three different times in the last 18 months, and it’s actually dropped significantly since the last time we spoke,” he emphasized, referring to the 2024 ALEC Annual Meeting in Denver, CO. He highlighted how the state’s top income tax rate had fallen to “3.9% total,” a dramatic decrease from “7% a decade ago.” This marks the lowest rate since the state’s income tax was first enacted and delivers much-needed relief to families in the Natural State.

“It allows people to keep more of their hard-earned money… it gives them a pay raise. It incentivizes work and labor and productivity—all things we want more of in our economy, not less.”

While these tax cuts will provide long-term benefits, families are still grappling with the relentless inflation of the past four years. Ray underscored the widespread impact of rising costs on household budgets.

“Families across Arkansas and across America are really being crushed by inflation. They feel it at the grocery store. They feel it at the gas pump. They feel it acutely in the housing market.”

To address this, Ray discussed his bill to eliminate Arkansas’ outdated tax bracket cap, ensuring tax brackets accurately reflect inflation rates. This measure would shield residents from “bracket creep,” a phenomenon where inflation pushes taxpayers into higher brackets without a real increase in purchasing power.

However, taxation remains a broader challenge for Arkansas, particularly for remote workers. The state currently ranks “45th out of 50” in the National Taxpayers Union’s evaluation of states’ taxation of mobile workers.

“If you earn $1 of income in a calendar year in Arkansas, our law requires you to file a state income tax return, even though you have no tax liability,” Ray explained. “Your business is technically, by law, required to start withholding… then you’ve got to file your income tax return just to get that withholding refunded at the end of the year.”

The solution, he suggests, lies in establishing a tax obligation threshold. Citing California’s $1,500 minimum as a potential model, Ray is confident this issue can be resolved before year-end.

His passion for Arkansas was evident—both in his words and in his unwavering commitment to policies that benefit the state. He spoke with pride about Arkansas’ contributions on the national and international stage, highlighting the influence of its leaders.

“We have two great Arkansans chosen for perhaps two of the most important ambassadorships in the entire world,” he said, referring to former Governor Mike Huckabee and Arkansas businessman Warren Stephens.

“He (Huckabee) has been to Israel so many times. He leads delegations of visitors from America over to Israel… at least dozens, if not hundreds of trips.”

Regarding Stephens’ nomination to the Court of St. James, Ray emphasized the significance of the U.S.-UK alliance.

“That is another one of America’s most crucial allies in the world, one of our oldest allies, and we have that special relationship that Winston Churchill so eloquently described with the UK.”

As the summit concluded, Ray’s message was one of optimism and proactive governance. His focus on tax reform, economic growth, and workforce-friendly policies signals a state not merely reacting to economic shifts but shaping its own destiny.

“We’re committed to policies that promote growth, fairness, and economic freedom,” Ray concluded. His vision for Arkansas is both clear and ambitious, reflecting the broader mission of every ALEC member at the States and Nation Policy Summit.