Weekly Wonk: Disagreement is natural, but incivility is a choice | The history of the Sales Tax Relief Credit | Anti-immigration laws, policies hurting American businesses

Annie Taylor // July 20, 2024 // Updated: July 20, 2024
Weekly Wonk

What’s up this week at Oklahoma Policy Institute? The Weekly Wonk shares our most recent publications and other resources to help you stay informed about Oklahoma. Numbers of the Day and Policy Notes are from our daily news briefing, In The Know. Click here to subscribe to In The Know.

This Week from OK Policy

Policy Matters: Disagreement is natural, but incivility is a choice: The question of civility in the face of disagreement has been on my mind, especially given the heightened toxicity and divisiveness in our politics and culture. It seems that every day, public discourse becomes more vitriolic. The attempted assassination of former President Trump this past weekend demonstrates the dangerous consequences. We can be better. [Shiloh Kantz / Journal Record]

The history of the Sales Tax Relief Credit (Capitol Update): House Minority Leader Rep. Cyndi Munson, D-Oklahoma City, has requested an interim study this year aimed at examining the benefits of modernizing the state Sales Tax Relief Credit. The credit is meant to help low-income workers partially offset the sales tax paid during the year. The study will look at the benefits of expanding eligibility and raising the amount of the credit for middle and low-income Oklahomans. [Steve Lewis / Capitol Update]

Weekly What’s That

Minimum Wage

The minimum wage is the lowest wage per hour that may be paid by law to most employees in most jobs. The U.S. federal government first adopted a national minimum wage in 1938 as part of the Fair Labor Standards Act, and it has been raised by Congress over twenty times since then.

The federal minimum wage was set as $7.25 per hour effective July 2009. As of 2023, the federal minimum wage has remained unchanged for over 14 years, the longest stretch ever without an increase. During this period, the minimum wage has lost over 27 percent of its value when adjusted for inflation, and some 40 percent of its value compared to its peak in 1968.

As of 2023, Oklahoma is one of 20 states that has a minimum wage set at the federal minimum wage of $7.25 per hour. Meanwhile, 30 states and D.C., including four of Oklahoma’s neighbors (Arkansas, Missouri, New Mexico and Colorado), have set a higher minimum wage, of which all but two are at or above $10 per hour. In addition, 48 cities have set a local minimum wage higher than their state minimum. However, the Oklahoma Legislature in 2014 passed a preemption law prohibiting municipalities from setting their own minimum wage.

Some employees may be paid less than the minimum wage, also known as the subminimum wage. For example, an employer in Oklahoma may pay a tipped employee as little as $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips, and the employee customarily and regularly receives more than $30 a month in tips. Employers may also gain authorization to pay subminimum wages to workers who have disabilities for the work being performed. Certain young workers and full-time student workers may also be paid less than the standard minimum wage.

Look up more key terms to understand Oklahoma politics and government here.

Quote of the Week

“It’s been humbling to be part of a solution to a problem that is faced by so many hard-working Oklahomans, and that’s what I love most about the initiative petition process is knowing I played a vital role in changing a policy that politicians didn’t have the courage to tackle themselves.”

– Cindy Alexander, volunteer signature collector and lead trainer for Yes on SQ 832, said regarding the success of the SQ 832 signature drive and the significance she feels about volunteering her labor and expertise to the signature gathering efforts. [The Black Wall Street Times]

Opinion-Editorial of the Week

Opinion: Anti-immigration laws, policies hurting American businesses

Have you noticed an increase in restaurant prices lately? Restaurants are not just businesses; they are the heart and soul of our communities.

For generations, immigrant families have enriched our dining experiences, bringing their diverse traditions and cultures to our tables. This sector has long been a sanctuary for immigrants, helping them to forge new lives and realize the American Dream.

Unfortunately, the flaws in our current immigration system hinder these contributions. An anti-immigrant stance is fundamentally anti-business, undercutting a sector pivotal to our economy and cultural life. It is imperative that Congress enact comprehensive immigration reform, and Oklahoma needs to play a significant role in these efforts.

Three years post-COVID-19 pandemic, the economic incentive to overhaul this system has never been clearer. Legal immigration is crucial to fostering a robust workforce, essential for our continued growth and prosperity.

The National Restaurant Association and the Oklahoma Restaurant Association advocates for bipartisan, sensible immigration reforms based on the following principles:

1. Providing a pathway to legalization: With over 11 million undocumented individuals who contribute significantly to our economy, it is critical to offer a clear path to legalization.

Of the undocumented population, about two-thirds (66%) have been in the U.S. for at least a decade, according to a Pew Research Center report in 2018. That is up from 41% in 2007, showing a majority of this population wants to make their home in our country long-term. They need a route to make that happen.

Allowing a legal pathway is a move widely supported by the public and would allow these valuable workers to fully integrate into our economic fabric without the constant threat of deportation.

2. Creating a viable essential worker program: The restaurant industry thrives on the diversity and dedication of immigrant workers. We propose a new visa program that matches willing workers with willing employers, facilitating legal year-round employment for foreign-born workers in the service sector.

Throughout my 25 years in the hospitality industry, I’ve witnessed firsthand the indispensable contributions of co-workers who were born into or came to this country under challenging circumstances. Their resilience and commitment embody the spirit of the American Dream and are vital to the success of every establishment I’ve been part of.

U.S. Sen. James Lankford of Oklahoma has been a key advocate for comprehensive immigration reform. Despite the often-divisive nature of politics, we must rally support for these reforms, showing that being pro-business is synonymous with being pro-immigrant.

The restaurant industry, heavily impacted by the pandemic, urgently needs a stable, dependable workforce to recover and expand. Effective immigration reform will ensure that restaurants nationwide have access to the labor they need to prosper, which will in turn stimulate economic growth, enrich our communities, and preserve the rich mosaic of cultural contributions that define American cuisine.

In conclusion, opposing immigration reform is not merely a political stance — it is a stance against business. For the restaurant industry and many others, fixing our broken immigration system is essential for a sustainable and prosperous future.

It is time for Congress to act, implementing sensible immigration policies that reflect our nation’s values and needs. Let’s unite in support of this critical cause, ensuring that our communities and businesses continue to thrive. [R. Jared Jordan / Tulsa World]

Numbers of the Day

  • 6.3% -Percentage of household income that Oklahoma’s top 1% of earners pay towards state and local taxes, which is almost half the rate payed by the lowest-income 20 percent of taxpayers. [Institute on Taxation and Economic Policy]
  • 15 – Number of years since Congress last raised the federal minimum wage in 2009. This is the longest period of time without an adjustment since the minimum wage was first created in the 1930s. [U.S. Department of Labor]
  • 576,000 – Estimated number of Oklahoma households that would be eligible for a tax reduction if Oklahoma modernized its Sales Tax Relief Credit. Nearly half of those households would be seniors. [OK Policy]
  • 22% – The share of workers in the South (2021) who are paid less than $15 per hour is substantially higher than that of any other region. [Economic Policy Institute]
  • 59% – Percentage of young children (ages 3 and 4) in Oklahoma who are not in school. This is higher than the national average of 54%. [KIDS COUNT]

What We’re Reading

ABOUT THE AUTHOR

Annie Taylor // ataylor@okpolicy.org

Annie Taylor joined OK Policy as a Digital Communications Associate/Storybanker in April 2022. She studied journalism and mass communication at the University of Oklahoma, and was a member of the Native American Journalists Association. She earned her bachelor’s degree in Strategic Communications from the University of Central Oklahoma. While pursuing her degree, she worked in restaurant and retail management, as well as freelance copywriting and digital content production. Annie is an enrolled member of the Choctaw Nation, and holds a deep reverence for storytelling in the digital age. She was born and raised in southeast Oklahoma, and now lives in Oklahoma City with her dog, Melvin.