Eliminate income taxes over 10 years?

[Ed W]

From the Owasso Reporter:

HB 3038 would repeal Oklahoma's progressive personal income tax without necessitating increases in other tax rates or cuts in funding to core government services.

Were Oklahoma to eliminate its personal income tax without raising or expanding any other tax rates, the state would have the lowest overall tax burden in the continental United States.

"When you consider the many other positive reforms Oklahoma has made in recent years, like becoming a Right-to-Work state and phasing out our death tax, and then add in one of the lowest tax burdens in America, it's fair to say we would have one of the top business climates of any state," said Rep. Tom Newell, another author of the legislation.

HB 3038 would phase out the state personal income tax through a process of simplifying the tax code, making modest reductions in wasteful, inefficient and non-essential state spending at the outset of the phase-out process, and utilizing growth revenue from other sources as Oklahoma's private sector grows in response to the state's dramatically improved tax climate.

Yep, they're gonna eliminate wasteful spending, like education, roads, parks, health care, and all those other frivolities.  What did TPD lose in the last year, something like $5 million?  And it's going to get worse.

[carltonplace]

From the Owasso Reporter:

HB 3038 would repeal Oklahoma's progressive personal income tax without necessitating increases in other tax rates or cuts in funding to core government services.

Were Oklahoma to eliminate its personal income tax without raising or expanding any other tax rates, the state would have the lowest overall tax burden in the continental United States.

"When you consider the many other positive reforms Oklahoma has made in recent years, like becoming a Right-to-Work state and phasing out our death tax, and then add in one of the lowest tax burdens in America, it's fair to say we would have one of the top business climates of any state," said Rep. Tom Newell, another author of the legislation.

HB 3038 would phase out the state personal income tax through a process of simplifying the tax code, making modest reductions in wasteful, inefficient and non-essential state spending at the outset of the phase-out process, and utilizing growth revenue from other sources as Oklahoma's private sector grows in response to the state's dramatically improved tax climate.

Yep, they're gonna eliminate wasteful spending, like education, roads, parks, health care, and all those other frivolities.  What did TPD lose in the last year, something like $5 million?  And it's going to get worse.

I think the most wasteful spending is on this congress's salaries. Can we phase that out over 10 years commiserate with the income tax reduction?
I'm not against lower taxes, who would be? But I don't want to jeopardize the future, or education or infrastructure or parks to get there.

One quick point of clarification: how does "no personal income tax" equate to "more business friendly"?
One other quick point of clarification: If we are so business friendly where are all of the new enterprises knocking each other down to move into OK?

[TheArtist]

 Personally I think its fine if the State eliminates the income tax and cuts state government to the bone.  Heck you could eliminate the state government for all I care.  Let each municipality/city/county tax and spend as it pleases and allow them to do the things the state government might do, if they want.  Would be better for Tulsa imho.  Less of my money going to OKC to support jobs there, and more of it staying here in Tulsa, the better.  

 Tulsa is just as capable of spending its money on education, parks, etc. in Tulsa as the state is... if not better.  At least we have the potential for better oversight and control of the spending when it's here.  This is one issue where I am more than happy to let the state Republicans have their way.  And while we are at it lets eliminate some wasteful, meddling, state regents out of the university picture as well.

[sgrizzle]

One quick point of clarification: how does "no personal income tax" equate to "more business friendly"?
One other quick point of clarification: If we are so business friendly where are all of the new enterprises knocking each other down to move into OK?

Larger companies will look at tax rates and cost of living when considering a location. Lower taxes and cost of living means they can pay people less. Since personnel costs are often the greatest portion of what a company spends in a year, the savings can be significant.

[Townsend]

Larger companies will look at tax rates and cost of living when considering a location. Lower taxes and cost of living means they can pay people less. Since personnel costs are often the greatest portion of what a company spends in a year, the savings can be significant.

On the other hand if the companies have to pay their employees more because they don't want to live here...

Bad roads, education, failing mass transit, no health care, parks are trashed, etc.

[erfalf]

On the other hand if the companies have to pay their employees more because they don't want to live here...

Bad roads, education, failing mass transit, no health care, parks are trashed, etc.

They wouldn't necessarily be worse. What evidence do you have to conclude that. Look at the states that don't have income tax, are there roads/services terrible? No. Of the nine or so states that don't have a personal income tax (some have no corporate tax as well) 7 are the fastest growing in the county.

I have always felt that government should be as local as possible. It increases accountability. That is why the federal government is such a problem. There is literally zero accountability, and it shows.

[Townsend]

They wouldn't necessarily be worse. What evidence do you have to conclude that. Look at the states that don't have income tax, are there roads/services terrible? No. Of the nine or so states that don't have a personal income tax (some have no corporate tax as well) 7 are the fastest growing in the county.

I have always felt that government should be as local as possible. It increases accountability. That is why the federal government is such a problem. There is literally zero accountability, and it shows.

Compare other tax levels.  How's the property tax look?

[nathanm]

Compare other tax levels.  How's the property tax look?

As I mentioned in a previous thread where this came up, Texans pay more per capita in tax than we do, despite the lack of an income tax. The justifications used make zero sense. It's all about ideology, not practical governance.

[AquaMan]

As I mentioned in a previous thread where this came up, Texans pay more per capita in tax than we do, despite the lack of an income tax. The justifications used make zero sense. It's all about ideology, not practical governance.

I get tired of people ignoring the facts and ignoring past threads on this very subject.

Zero state income tax will be about as successful in bringing in new business as right to work has been. Maybe as successful as the lottery has been to increase per pupil education funding and probably as successful as our liquor laws are in controlling alcoholism and DWI's. Heck, maybe we'll get the stellar results we have with building more prisons to fight the proliferation of drugs.

Yeah, Oklahoma, we really got it going now. Everyone wants to locate business here.

[Townsend]

Yeah, Oklahoma, we really got it going now. Everyone wants to locate business here.

Private prisons seem to like us.

[TheArtist]

As I mentioned in a previous thread where this came up, Texans pay more per capita in tax than we do, despite the lack of an income tax. The justifications used make zero sense. It's all about ideology, not practical governance.

I don't care if it is all about ideology, it still works for me if its a first step in allowing say Tulsa to decide where, when how, on what to spend any tax dollars it raises on things it wants vrs us going to the capital to beg and plead for our portion back and asking them how we can be allowed to spend our money, and on what, etc.  

I would rather the state go ahead and strip itself of all kinds of taxing powers and authority "smaller state government" and let the local municipalites choose what taxes it wants, how much to tax, and where to spend that money.  

Why cant we Tulsan's build the roads we want with our money? Keep the state out of it. Why cant we build our own colleges (heck TCC is one of the largest universities in this region of the country) etc.   Not having the state do those things shouldn't mean WE can't do those things.  It doesn't mean that there has to be any more or less money for us to do those things, just means we don't have to filter our money through OKC (helping out their economy while draining ours).  Wipe out the entire state goverment for all I care, let us tax or "fee" as we want and use it how we will for... healthcare, roads, prisons, mental services, universities, museums, dams, etc. etc.   We could build all those institutions here with our money and help our economy and keep a better eye on efficiencies, etc.

[AquaMan]

I wish I could be as optimistic as Artist is in hoping for complete local control. I do believe that local is probably easier to manage than statewide or nationwide. Problem is there is no synergy to be obtained by walling yourself off from those who take advantage of your ineptness as the feds and the state has done to Tulsa. You simply become less relevant. In fact you're better off staying in the tournament and improving your game rather than hanging your head and playing ball with your little sister.

More importantly, the first thing the state would do is raise the tax on drivers licenses, car purchases and tags etc. Then they would enact new laws to constrain the smaller local kingdoms. They are the mob. They never go away. You don't eradicate the mob, you learn to minimize, marginalize, manipulate them.  

[godboko71]

I am not very optimistic this will make more new businesses come to Oklahoma, because to replace the income tax, property tax will have to go up, so will other taxes and fees. At the end of the day sure we may cut some of the fat, and at the end of the day sure we might save a little money but its not going to be enough to offset the lose in revenue. Hell in the Governors Address she mentioned the very fact by talking about diversifying revenue streams.  That is political speak for shifting the taxes around, guess what citizens and businesses will make up that diversification and I don't necessarily mean new businesses.

[sauerkraut]

Yep, this is a real good postive step for our state. Mary Fallin is doing an outstanding job, her bill is working it's way thru the state house. With no state income tax Oklahoma is ready to boom and became a powerhouse economy attracting jobs from other states. The state's income will grow as the economy expands and more people & companies move to Oklahoma, thus feeding a boom times.

[Townsend]

Yep, this is a real good postive step for our state. Mary Fallin is doing an outstanding job, her bill is working it's way thru the state house. With no state income tax Oklahoma is ready to boom and became a powerhouse economy attracting jobs from other states. The state's income will grow as the economy expands and more people & companies move to Oklahoma, thus feeding a boom times.

You had me at "yep".