End Oklahoma’s Tax on Work Continue reducing, and eventually eliminate, Oklahoma’s “penalty on work” – our state income tax. This can be accomplished responsibly, without depleting funding for core government services or increasing or introducing other taxes.
Safeguard State Taxpayer Dollars To keep a low burden on families and job creators, Oklahoma state government must practice better restraint, efficiency and prioritization in how it spends taxpayer dollars. This effort can take many forms, such as limiting state government to core functions, pushing back against federal government intrusion in areas like Medicaid, expanding parental choice in education, and pursuing a more sustainable retirement system for hardworking state and local government employees.
FACT: As Oklahoma gradually reduced its personal income tax rate from 2005 through 2012, our state’s economy grew faster than the national economy and faster than many of our surrounding states. This, along with other positive economic factors, helped grow new jobs and increase individual opportunity in our state. (Source: U.S. Bureau of Economic Analysis)
FACT: Oklahoma’s total state government spending has reached record highs each of the past dozen years, even through two national recessions. Total Oklahoma tax collections, coming out of the most recent recession, have also hit record highs in each of the last three fiscal years. Available funds, per-pupil, in our state’s public education system have reached record highs, as well. Oklahoma government does not have a revenue problem, but we do have a spending problem. Income tax reductions have not depleted funds for schools, roads, bridges, infrastructure or public safety. (Sources: Oklahoma Office of Management and Enterprise Services, Oklahoma Tax Commission, Office of the State Treasurer)
FACT: Oklahoma is in what Gov. Mary Fallin has rightly called an “income tax sandwich” between Kansas and Texas. Families, entrepreneurs and job creators can go north or south and keep more of what they earn, making either destination a better climate for personal and business growth, particularly for small business owners. (Sources: Tax Foundation, CNBC, Chief Executive Group, American Legislative Exchange Council)