A five-page analytical report on the economics of the unique tax situation in Texarkana Arkansas. Texarkana Arkansas currently has a state income tax exemption so if you live there you don’t have to pay state income taxes (to match Texas). The state of Arkansas keeps getting proposals to do away with this tax exemption. Assume you are writing your paper to the governor of Arkansas advising him on the best course of action. Make sure you make a recommendation, either to keep the exemption or do away with it. Please think broadly about the impacts of any change and how it will affect all aspects of life in the city and the state. I have attached some documents with basic information. You do not need to use any of this but its available to get you started if you want. You can access most tax and demographic information on the web. There is no correct answer but you will be graded on the depth and breadth of your analysis as well as how much you apply economagnic principles to your thought.
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