RACE TO THE BOTTOM, PART TWO(1)

(March 2005) Arkansas advocates of increased spending for K-12 public education claimed in 1983 that tax increases would lead to income growth. In 1983, Arkansas ranked 49th in the U.S. in per capita personal income(2).

In 2003, Arkansas still ranked 49th, ahead of only Mississippi. Between 1983 and 2003, West Virginia (48th), Arkansas (49th) and Mississippi (50th) did not improve in rank while seven other states in the Southeast region improved their ranking.

PER CAPITA PERSONAL INCOME, 1983

United States average $12,618
Virginia $13,038 (#15 in U.S.)
Florida $12,655 (#18)
Louisiana $10,897 (#36)
Georgia $10,874 (#37)
North Carolina $10,527 (#39)
Tennessee $10,329 (#43)
Kentucky $9,915 (#45)
South Carolina $9,806 (#46)
Alabama $9,784 (#47)
West Virginia $9,614 (#48)
Arkansas $9,491 (#49 in U.S.)
Mississippi $8,576 (#50)

PER CAPITA PERSONAL INCOME, 2003

United States average $31,459
Virginia $33,651 (#9 in U.S.)
Florida $29,972 (#24)
Georgia $29,259 (#27)
Tennessee $28,565 (#33)
North Carolina $28,301 (#36)
Kentucky $26,352 (#40)
Alabama $26,276 (#41)
South Carolina $26,138 (#42)
Louisiana $26,038 (#43)
West Virginia $24,672 (#48)
Arkansas $24,296 (#49 in U.S.)
Mississippi $23,343(#50)

-- Greg Kaza

1 “Race To The Bottom,” Policy Foundation research memo, Nov. 18, 2003.
2 The BEA defines per capita income as total personal income divided by total midyear population. The most recent data available is from 2003.