OKPOLICY.ORG
• This column originally ran in the Journal Record on Feb. 7, 2024
• OK Policy Advocacy Alert: Tell lawmakers to oppose tax cuts that benefit the wealthy and risk critical services
Oklahomans pay among the least in taxes when compared to folks from other states. And we get what we pay for – or in this case don’t pay for. While our taxes are low, so is our quality of life when stacked up against other states. You don’t have to look hard to find neighbors who are suffering.
Oklahoma has one of the nation’s highest poverty rates, with 1 in 5 Oklahoma children living in poverty – unsure where their next meal may come from. Nearly 1 in 3 households would be financially devastated if they faced an unexpected car repair or other emergency. And 1 in 8 Oklahomans remain uninsured.
Despite these unmet needs, many elected officials want to slash state revenue through across-the-board personal income tax cuts that give the same percentage of benefit to millionaires as it does to everyday Oklahomans. While they are saying it would put money back in pockets, it results in pennies a day back to most folks, while the top 1 percent get back thousands of dollars a year.
To support their position for revenue cuts, lawmakers have pointed to the size of state savings accounts. However, a recently released report from the Legislative Office of Fiscal Transparency showed state leaders should be concerned that our savings accounts are insufficient for anything more than a mild economic downturn, especially because we’re so reliant on the petroleum industry. We can see warning signs ahead as oil and gas revenue was down nearly 40 percent during the past year.
Some lawmakers say revenue reduction via income tax cuts is the easiest way to shrink state government. The reality of that approach means squeezing vital state agencies through attrition, as opposed to making thoughtful decisions on how to best allocate public resources for the betterment of our state.
We don’t have to look far to see how public investments can dramatically turn around communities. Oklahoma City residents chose to make investments in their community through taxes for MAPS projects that have been a resounding success. Oklahoma CIty thrives today not because they cut their way to success but because they invested in themselves and their community.
So, until the quality of life improves for all Oklahomans – not just those at the top – there is much work to be done. And until our state has resources to weather future financial storms without another catastrophe, it’s premature to consider cutting state revenue.
