Arkansas’ Republican Governor Sarah Huckabee Sanders has signed into law the State’s latest round of individual and corporate tax cuts. “Finance officials” say that

the cuts will cost about $483 million the first year and $322 million a year after that.

Sanders also has signed into law a different tax cut, this one in the form of a tax credit increase. This one

increases the homestead tax credit from $425 to $500, retroactive to January 1.

“Finance officials” piped up again:

That cut will cost $46 million.

Cost whom, exactly? The money isn’t the State government’s after all. The money belongs to the citizens of Arkansas, they just remit it in the form of tax levies. It doesn’t cost the government a single copper penny to not get what doesn’t belong to it.

Beyond those “financial officials'” distortion, there’s another item missing from their pseudo-analysis.

Those officials are ignoring the impacts of the increased economic activity in the State’s private economy from all that money now being left in the private hands of the State’s citizens and private businesses. There are two primary impacts. One is the increased prosperity of those citizens both from their being able to hold onto more of their money and from that increased economic activity. The other is the increased tax receipts the government will receive, on net despite the reduced tax rates, from the increased aggregated revenues flowing from all that increased economic activity.