Comments on: Guest blog (Tom Daxon): Putting tax expenditures on the right TRACC http://okpolicy.org/blog/taxes/guest-blog-tom-daxon-putting-tax-expenditures-on-the-right-tracc/ Oklahoma Policy Institute Sun, 12 Feb 2012 11:30:46 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Evan Stair http://okpolicy.org/blog/taxes/guest-blog-tom-daxon-putting-tax-expenditures-on-the-right-tracc/comment-page-1/#comment-1312 Evan Stair Fri, 12 Mar 2010 04:55:04 +0000 http://okpolicy.org/blog/?p=4387#comment-1312 You cannot save your way to prosperity. Essentially, the state has tied its fiscal arms behind its back by forcing any tax increase to a vote of the people. The legislature has shown a reluctance since that bill was passed to even consider sending a tax increase proposal to the people. 1) There is no guarantee such would pass and... 2) the ballot box retribution for such would mean political suicide. The concept of permanent tax cuts in Oklahoma is therefore fiscal suicide but some seem ready to try this. Eliminating tax loopholes is a good plan but as with any plan it must be monitored to show effectiveness and the money must be distributed to those government agencies and projects that most benefit the people, not just the corporation or a collective of corporations. The people of Oklahoma nearly universally buy into the concept that their taxes are too high because the ruling party in the state says they are. This is echoed by local and national talk radio outlets. It is the tired worn out statements that claim placing money back in the pockets of the corporation will naturally generate a vibrant economy because corporations will freely hire more employees. In the 30 years since the Reagan revolution there is no evidence that such is true. The evolution of a global economy also shows that these corporations have an itchy trigger finger when it comes to moving out of state or out of the nation. It is a vastly more complex game. It is not a time to play a political social engineering game so that one party can beat the other as if this were some kind of football game. There is evidence that our infrastructure, completed in the 1970s is deteriorating to the point where something must be done. The I-35 bridge collapse in Minneapolis is a sad and sobering example. However, Oklahoma can and should get more out of the tax-dollars it collects. State agencies must come under closer scrutiny from the legislature. For anyone who travels beyond state borders you know how deplorable state roads and bridges are in comparison. There is really no excuse. ODOT is a $1.4 billion state agency. It on average spends more than the Kansas Department of Transportation, a $600 million annual state agency. Still, Kansas roads are far superior to Oklahoma roads. The land mass of Kansas is nearly a quarter larger than that of Oklahoma. Something is afoul in this equation. However, are state legislators looking at this enigma; or are they avoding the difficult questions by attempting to legislate morality through Ten Commandment monuments, modifications to marriage laws, and making illegal the donation of women’s eggs? None of these are controversial subjects in conservative Oklahoma. The really difficult fiscal subject of taxpayer stewardship and oversight seems to be a lost art. Oklahoma needs a reality check and fast. You cannot save your way to prosperity. Essentially, the state has tied its fiscal arms behind its back by forcing any tax increase to a vote of the people. The legislature has shown a reluctance since that bill was passed to even consider sending a tax increase proposal to the people.

1) There is no guarantee such would pass and…

2) the ballot box retribution for such would mean political suicide.

The concept of permanent tax cuts in Oklahoma is therefore fiscal suicide but some seem ready to try this. Eliminating tax loopholes is a good plan but as with any plan it must be monitored to show effectiveness and the money must be distributed to those government agencies and projects that most benefit the people, not just the corporation or a collective of corporations.

The people of Oklahoma nearly universally buy into the concept that their taxes are too high because the ruling party in the state says they are. This is echoed by local and national talk radio outlets. It is the tired worn out statements that claim placing money back in the pockets of the corporation will naturally generate a vibrant economy because corporations will freely hire more employees. In the 30 years since the Reagan revolution there is no evidence that such is true. The evolution of a global economy also shows that these corporations have an itchy trigger finger when it comes to moving out of state or out of the nation. It is a vastly more complex game. It is not a time to play a political social engineering game so that one party can beat the other as if this were some kind of football game.

There is evidence that our infrastructure, completed in the 1970s is deteriorating to the point where something must be done. The I-35 bridge collapse in Minneapolis is a sad and sobering example. However, Oklahoma can and should get more out of the tax-dollars it collects. State agencies must come under closer scrutiny from the legislature.

For anyone who travels beyond state borders you know how deplorable state roads and bridges are in comparison. There is really no excuse.

ODOT is a $1.4 billion state agency. It on average spends more than the Kansas Department of Transportation, a $600 million annual state agency. Still, Kansas roads are far superior to Oklahoma roads. The land mass of Kansas is nearly a quarter larger than that of Oklahoma. Something is afoul in this equation.

However, are state legislators looking at this enigma; or are they avoding the difficult questions by attempting to legislate morality through Ten Commandment monuments, modifications to marriage laws, and making illegal the donation of women’s eggs? None of these are controversial subjects in conservative Oklahoma.

The really difficult fiscal subject of taxpayer stewardship and oversight seems to be a lost art. Oklahoma needs a reality check and fast.

]]> By: Davo http://okpolicy.org/blog/taxes/guest-blog-tom-daxon-putting-tax-expenditures-on-the-right-tracc/comment-page-1/#comment-1302 Davo Wed, 10 Mar 2010 15:50:42 +0000 http://okpolicy.org/blog/?p=4387#comment-1302 Mr. Daxon- there would need to be alot of details fleshed out before any reasonable person would consider this... You present the classic oxymoron here- "governemnt spends too much" combined with "Taxes are what we pay for a civilized society". Oklahoma does not pay the highest or the lowest tax rates in the country. We do have a very limited population base to generate those revenues from, but that base clearly uses the services of the governement, we all drive on the highways, famlies utilize the eduction systems in the state, those type of uses are clear, but how about how OKDHS has had interactions with 1.2 millon people in our state in the last year, 25% of the children in this state are on food stamps? Or federal farm subsidies in our state that apparently pay out more to farmers than what they generate themsleves as revenues. The state's citizens "like" and "use" the services of the state clearly. They are just not willing to pay for those services. This proposal seems to suggest a strong belief that there is a correlation between the individual tax rates and new business, but I don't know of any legitimate and reputable research studies that would actually tie these two together. None. In principle the idea of plugging holes in the Oklahoma tax code would be an logical and sound move regardless. It is somewhat sad that somehow "doing the right thing", in this case reviewing the questionable tax loopholes and closing them, has to be tied to carrots for the two political parties. It would infer that without a "benefit" to take home and show the citizens our legislators are incapable of doing the right thing. It would imply there is no political will on either side of the asile to deal with the real issues here- the cost of the services that citizens do use. Give the tax breaks a rest until the current budget situation has been rectified. What you suggest should be done regardless because plugging holes that should not be in the tax code, that benefit only a few vested special interest is the right thing to do... and would be a political winner for whatever party has the guts to stand up and just do it no strings attached... Mr. Daxon- there would need to be alot of details fleshed out before any reasonable person would consider this…
You present the classic oxymoron here- “governemnt spends too much” combined with “Taxes are what we pay for a civilized society”.
Oklahoma does not pay the highest or the lowest tax rates in the country. We do have a very limited population base to generate those revenues from, but that base clearly uses the services of the governement, we all drive on the highways, famlies utilize the eduction systems in the state, those type of uses are clear, but how about how OKDHS has had interactions with 1.2 millon people in our state in the last year, 25% of the children in this state are on food stamps? Or federal farm subsidies in our state that apparently pay out more to farmers than what they generate themsleves as revenues.
The state’s citizens “like” and “use” the services of the state clearly. They are just not willing to pay for those services.
This proposal seems to suggest a strong belief that there is a correlation between the individual tax rates and new business, but I don’t know of any legitimate and reputable research studies that would actually tie these two together. None.
In principle the idea of plugging holes in the Oklahoma tax code would be an logical and sound move regardless.
It is somewhat sad that somehow “doing the right thing”, in this case reviewing the questionable tax loopholes and closing them, has to be tied to carrots for the two political parties. It would infer that without a “benefit” to take home and show the citizens our legislators are incapable of doing the right thing. It would imply there is no political will on either side of the asile to deal with the real issues here- the cost of the services that citizens do use.
Give the tax breaks a rest until the current budget situation has been rectified. What you suggest should be done regardless because plugging holes that should not be in the tax code, that benefit only a few vested special interest is the right thing to do… and would be a political winner for whatever party has the guts to stand up and just do it no strings attached…

]]>