Sales taxes are not deductible. Arkansas is headed in that direction. We have a three-pronged system based on property taxes, income taxes and sales taxes. We have rates that rank from moderately low to extremely low. As the economy fluctuates, sales taxes are the most volatile.
Property taxes are the most stable from year to year.
And it doesn't take a policy wonk to realize revenue stability is vital to providing services to our citizens and maintaining a balanced budget. This doesn't mean we don't have inefficiencies in government. I've spent four years as governor trying to wipe out as many inefficiencies as possible. The way to cut taxes is to focus on these inefficiencies, not to destabilize a proven tax system. These were the first major tax cuts in our state's history.