Greater Oklahoma City Chamber - State Income Tax Reform

State Income Tax Reform

State Income Tax Reform
The Chamber applauds the efforts of Gov. Mary Fallin and legislative leaders to reform Oklahoma’s tax structure and to responsibly reduce the state income tax to a level that will make our state more competitive. However, the Chamber believes the following tax reform guidelines should be followed in order to preserve and enhance our state’s business climate:

  • A tax system most conducive to economic success will maintain diverse revenue streams to fund core services and provide a broad tax base at the lowest practical rates, rather than a narrow tax base that would subject state revenues to increased economic volatility. 
  • Given the inherently cyclical nature of the state’s economy and the constitutional limitations on increasing taxes, tax reform decisions should not include multi-year tax reduction formulas. This will provide certainty and predictability for companies in our state by requiring that future changes to the tax code are considered in the context of the then-existing economic environment.
  • Elected officials should maintain revenue neutrality and adequately fund core government services that are essential to economic development, such as a transportation system that will meet the state’s infrastructure needs for future expansion, an education system that will produce a skilled workforce and a health-care system that provides adequate care and promotes a healthy workforce.
  • The Chamber supports retaining the state’s premier economic development incentive programs, such as the Quality Jobs Act and the 21st Century Quality Jobs Act, which are supported by the state income tax.
  • The Chamber will only support changes to the income tax code that will not have the effect of shifting the burden of generating or collecting future revenues onto Oklahoma companies.

 

For more information, please contact a member of our Government Relations staff.

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