ARKANSAS STILL RANKS 49TH DESPITE TAX INCREASES LINKED TO INCOME GROWTH
Arkansas per capita personal income for 2004 was $25,725, or 0.78 percent of the U.S. ($32,937). Mississippi, which ranks 50th, had a per capita personal income of $24,650, or 0.75 percent of the U.S. Both states were well below the Southeast region ($29,769).
Per capita personal income in Arkansas was 0.75 percent of the U.S. in 1983 when then-Gov. Bill Clinton linked a 33 percent sales tax increase to income and economic growth. (Arkansas Gazette: June 1, Aug. 25, Sept. 20-21, Oct.14, 1983 and Aug. 1, 1984). The tax increase did not improve Arkansasí long-term per capita rank.
By contrast, Mississippi per capita personal income has grown at a rate greater than Arkansasí. Per capita personal income in Mississippi was 0.68 percent of the U.S. (1983) and 0.75 percent (2004).
BEA calculates per capita personal income by dividing the personal income of the residents of a given area by the resident population using Census Bureau annual midyear population estimates. Following are state rankings based on the 2004 preliminary data.
State Rankings, Per Capita Personal Income (2004)