Statement: Lawmakers should heed Governor Fallin’s call to fix structural deficit

Oklahoma Policy Institute released the following comment in response to Governor Fallin’s State of the State address:

We applaud Governor Fallin’s call to fix Oklahoma’s structural budget deficits and reverse years of funding cuts that are damaging the health and prosperity of our entire state. The Legislature must heed the governor’s calls to reduce incarceration, fund a teacher pay raise, and restore the 5-day school week. Oklahoma knows how to address these problems, and we have no excuse not to do something this year.

Governor Fallin’s tax reform proposals, whch include ending the corporate income tax and the sales tax on groceries while expanding the sales tax base in other ways, has potential to reduce revenue volatility and end one of the most regressive aspects of our tax system. However, these reforms must be carefully assessed for how they would affect families, the economy, and state revenues. Oklahoma’s budget hole grew from years of tax cuts and tax breaks passed without consideration for what they would cost. Going forward, tax reforms need to stick to a more realistic assessment of what our state needs to do its job.

A grand bargain on tax reform should also include other policies to end loopholes, improve funding for the services Oklahomans need most, and make our tax system work for regular families – policies like rolling back cuts to Oklahoma’s Earned Income Tax Credit, restoring a higher income tax rate for very high incomes, and ending the capital gains tax break. Together these reforms would stabilize revenues and provide a strong foundation for all Oklahoma families to build a prosperous future.


Gene Perry worked for OK Policy from 2011 to 2019. He is a native Oklahoman and a citizen of the Cherokee Nation. He graduated from the University of Oklahoma with a B.A. in history and an M.A. in journalism.

2 thoughts on “Statement: Lawmakers should heed Governor Fallin’s call to fix structural deficit

  1. I suggest that we work hard to elect the Lieutenant-Governor to her position so that we ensure the life of this same speech that we have heard for the last seven…this is the only “future” we can look forward to…that of familiarity. alan, retired educator, having served Oklahoma PUBLIC SCHOOL children for 39 years….

  2. How much do corporate taxes generate in revenues? If corporate taxes are done away with what will be the benefit? I am not sure I see any advantage to ending corporate taxes.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.