This week the Arkansas Legislative Task Force on Reducing Poverty and Promoting Economic Opportunity released thirty-one recommendations for reducing poverty in the state. Rich Huddleston, co-chair of the task force and Executive Director of Arkansas Advocates for Children and Families said, "Poverty hurts individual Arkansans, but it also has a long-term impact on our economy. Our businesses need a healthy, educated work force. To get there, we need to ensure that our children are in good shape and get a quality education."
Not surprisingly, the panel found that tax policy has a role to play in poverty reduction. The panel recommended a variety of policy changes including: creating a state Earned Income Tax Credit, fixing the Arkansas low-income tax threshold, and continuing efforts to cut the state sales tax on food. See the panel’s full recommendations here.
Arkansas, of course, is not alone in having sensible options for using the tax code to reduce poverty. To read about more effective anti-poverty strategies in your state, read ITEP’s report: Credit Where Credit is (Over) Due.