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Supreme Court clears the way for Republican-friendly Texas voting maps; In Twin Cities, riverfront development rules get on the same page; Boston College Prison Education Program expands to women's facility; NYS bill requires timely state reimbursement to nonprofits; Share Oregon holiday spirit by donating blood.

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Trump escalates rhetoric toward Somali Americans as his administration tightens immigration vetting, while Ohio blocks expanded child labor hours and seniors face a Sunday deadline to review Medicare coverage.

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Native American tribes are left out of a new federal Rural Health Transformation Program, cold temperatures are burdening rural residents with higher energy prices and Missouri archivists says documenting queer history in rural communities is critical amid ongoing attacks on LGBTQ+ rights.

Tax hikes for rich Arkansans could save federal programs

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Monday, May 12, 2025   

As reports show the Trump administration is considering raising taxes on wealthy Arkansans to pay for its priorities, a new study from American University validates the idea.

It suggests the move could generate revenue without slowing economic growth.

Mary Eschelbach Hansen, associate professor of economics at American University and the report's co-author, said raising tax rates to 44% for people who earn more than $600,000 a year would add 3% to the nation's tax coffers.

"In current budget proportions, that's about enough to pay for some of the biggest, most important programs like food stamps SNAP, Children's Health Insurance Program and also Temporary Assistance for Needy Families," Eschelbach Hansen outlined.

More than 400,000 Arkansas families use federal assistance programs like the Supplemental Nutrition Assistance Program, which provides food stamps. Leaders in Congress, including Rep. Mike Johnson, R-La., the House Speaker, said they would oppose any tax hikes.

Research shows almost 50% of Arkansas households are ALICE, which means they are Asset Limited, Income Constrained and Employed, and do not make enough money to cover basic needs. Eschelbach Hansen pointed out raising the top tax rate would increase the amount of money most Americans get to keep by about 2%. She added years of attempted trickle-down economics have shown only the wealthy benefit from low tax rates.

"If lowering top tax rates was going to trickle down, then you and I would be much richer than we are now," Eschelbach Hansen emphasized. "Because we have had an era of low top tax rates for decades."

Eschelbach Hansen stressed higher personal tax rates have virtually no impact on long-term economic growth and lower personal tax rates lead to less economic growth. She explained the wealthy tend to take advantage of the lower rate by moving their income.

"Instead of reinvesting it in your business, where it will grow your business and grow the economy, you'll be more likely to just take it as personal income, which is not going to stimulate growth," Eschelbach Hansen underscored.


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