OKLAHOMA CITY Okla_ 7News has new
information on the push in the Oklahoma House to cut the state income tax rate.
One of the bills
is sponsored by House Speaker T.W. Shannon of Lawton. It would reduce the rate from 5.25% to
5%. The other would drop the rate to 4.99%. Both measures would cost the state
about $120M annually when fully implemented. That's where the opposition comes
in.
Speaker Shannon
and to Democratic Representative Joe Dorman of Rush Springs,
who voted against both bills. Everyone wants the same thing; they just have
completely different ideas on how to get there.
The financial
crisis is a vicious cycle. To help the people, we hurt the state; to help the
state, we hurt the people. As 2012 disappeared, so did some of our money. Everyone
has seen a little less of their paycheck this year, thanks to the payroll tax
increase that kicked in January 1st, and Speaker Shannon said it's not right.
"Each time
the government takes a dollar from you, they are taking a little piece of your
freedom," Shannon said.
He said the
economy problem stems from a government spending issue, and that the problem
shouldn't be fixed by taking more money from the people.
"If you
want capital and investment to flow, the government has to move back and allow
people to work," Shannon said. "Allow private
free market principles to work. We are excited to allow hardworking Oklahomans
to keep more of their hardworking money."
The speaker said
surrounding states have done a great job in eliminating their state income tax
or at least reducing it, and we need to follow suit to stay competitive.
"If Oklahoma is going to be attractive, if Oklahoma
is going to be the place of preference to do business and raise a family, we
have got to keep our tax burden low," Shannon
said.
The opposition said
we need to worry more about the people we already have. While a little extra
change in the pocket would be beneficial for Oklahomans, Senator Joe Dorman said
the extra money most middle class workers would see wouldn't be worth the loss
in state revenue.
"For your average Oklahomans, you're only
going to see a very little reduction in savings from this tax plan,"
Dorman said.
He said your
small savings would badly hurt the state, especially when you consider yearly
inflation and Governor Fallin's plan for an increase in spending in certain
areas. Also, the state has to fund the services it already has.
"We still
have to find a way to fix potholes," Dorman said, "To pay troopers on the road.
We still have to find a way to pay for fire protection and school teachers."
Dorman argues
the numbers just don't add up.
"We've got
to find a way to pay the bills and be responsible for our state budgets before
we go through and make any reductions," Dorman said.
Shannon said the money
would not come from government services, but from growth revenue. That means it
would come from money that is generated above and beyond what the state expects
to have. He said they've already seen $200M in growth this year. Dorman thinks
no matter what, we would only be able to replace about half the money we would
lose.
The income tax cuts would be permanent if they are approved.
