OK Policy released the following statement on the latest tax cut proposal by Governor Fallin and Legislative leaders:
Since 2008, Oklahoma public schools have endured the third largest budget cuts in the nation. Out of control tax breaks contributed to a collapse in revenue from oil and gas drilling. We still don’t know what will be the full cost of State Question 766 or what impact federal budget cuts will have on Oklahoma’s core services.
In this situation, it’s not the time for more tax cuts that would do little to help average Oklahomans, take $237 million from schools and other core services, and make Oklahoma more vulnerable to an energy bust or economic downturn. The Governor and legislators have partially recognized these facts by dramatically scaling back tax cut proposals from last year and by deferring more income tax cuts until 2015 and 2016. Yet the proposal announced today would commit us to tax cuts two years from now, when we have no way of knowing what Oklahoma’s needs or economic situation will look like.
The leadership agreement also leaves many sensible tax reform proposals off the table in favor of an unpaid-for tax cut. Over the final weeks of session, there is still time to do away with unnecessary tax breaks, especially the double deduction for state income taxes and the uncapped tax credit for horizontal drilling.
Today Kansas is burning through state reserves and heading towards a more than $500 million deficit due to irresponsible tax cuts. Oklahoma should not follow their bad example.
You can use this form to tell lawmakers that tax cuts at the expense of Oklahoma’s schools and other core public services are unacceptable.