Debate on reducing state income tax

[urbanity]

Creating a boomtown in OKC
http://www.okgazette.com/oklahoma/ar...wn-in-okc.html

Bad tax model
http://www.okgazette.com/oklahoma/ar...tax-model.html

[lasomeday]

OK, so they got someone that has a clue about business to write the boomtown article and an English professor to write the bad tax model article. I wonder which one knows what they are talking about?

[HewenttoJared]

The one who realizes that roads cost money. Kurt's a pretty bright guy and he welcomes visitors in his office hours. If you think you know more than him about regressive tax restructuring I encourage you to go have a word.

[adaniel]

Of the states that have no income tax, only New Hampshire has a lower unemployment rate than OK, and several, such as Nevada and Florida, have appreciably higher unemployment rates, so color me skeptical that Oklahoma would explode if the income tax was repealed.

Like many things politicians in this state have promised would bring perpetual prosperity to Oklahoma (Right-to-work, casino gambling, lottery, etc.), this will help with some businesses on the fence but will not be the silver bullet that saves this state. Why? Economics are much more complicated than one or two things, and the things keeping Oklahoma from moving to a good state to a great state are muti-faceted and need to be dealt with differently.

How are we going to fix infrastructure? What are we going to do about our schools? Can we scale down some of this state's bureaucracy, with 500+ school districts, nearly 40 tribes, etc. Those are things that need to be dealt with, but handling these things require thinking and intelligence, things that don't get you reelected here.

A company that moves to Oklahoma because its cheap and there's no income tax and no other reasons will be here 5 years max, before bailing to China, Mexico, or India where its even cheaper and they will pay even less taxes. If this state is to have a real reason for outside businesses to come here, we need to make Oklahoma a worthwhile place to stay, raise a family, and have a good quality of life. I fail to see how an income tax repeal and the subsequent spending reductions will do this.

[Midtowner]

What a dumb idea. And the only people who would arguably experience a seriously tangible benefit would be the very well-off. Even if you make $100K, you're only paying 5K in state income tax. 5% is probably too low.

[Bellaboo]

You no want income tax ? Or would you like to double or triple your property tax ?

This horse has been beaten to death more than once....

I rememeber back in the late 70's or early 80's a couple of state reps had this big proprosal and it got nowhere fast. This seems to come up every few years.

[Bunty]

I don't seem to get any impression that Republicans have anything in mind to replace the state income tax. Maybe nothing while hoping for the best.

[Bellaboo]

Like I said, this keeps getting brought up ever so often, as much as I'd like a simpler tax structure, there are way too many jobs that would be affected.....

It's not gonna happen.

[windowphobe]

As has been pointed out, states without income tax are making it up with other taxes, and we're not so flush with funds right now that we can afford to throw away that component of state revenue, unless they're planning to take a machete to state services - and to do that, they're going to have to pass a whole lot of constitutional amendments, since so many services are mandated in the state constitution.

Doc Hoc and I don't agree on a whole lot, given my only-slightly-peccable Vast Right-Wing Conspiracy credentials, but we're pretty much on the same side on this matter.

[ljbab728]

Does everyone know what they're planning to do with the extra $88.00 in three years. LOL

In three years, you'll get $88: Oklahoma House passes income tax measure | News OK

[betts]

It will buy me about 3 weeks of morning coffee. One week a year, I guess.

[ThomPaine]

What a dumb idea. And the only people who would arguably experience a seriously tangible benefit would be the very well-off. Even if you make $100K, you're only paying 5K in state income tax. 5% is probably too low.

i.e., the same people who write large checks to candidates and the Republican party.

[onthestrip]

What a dumb idea. And the only people who would arguably experience a seriously tangible benefit would be the very well-off. Even if you make $100K, you're only paying 5K in state income tax. 5% is probably too low.

Only 62% will benefit from this tax break, and most of that 62% will see just a nominal break. So this "tax cut" will not cut any taxes of 38% of the population. Kinda sucks to be the bottom 40% in Oklahoma, no tax cut and less government services. Guess you just need to learn to be a small business owner or something...

Also absurd to tie our hands now for something 2 years away. We have no idea what will happen with the economy in the meantime.

[onthestrip]

Btw, this should probably be moved to the politics page.

[venture]

Does everyone know what they're planning to do with the extra $88.00 in three years. LOL

In three years, you'll get $88: Oklahoma House passes income tax measure | News OK

I'm sure we'll end up seeing increases in property taxes that will take that plus some away anyway.

Btw, this should probably be moved to the politics page.

Eh, overall this hasn't got too political yet so I think we are good.

[kelroy55]

I'm sure we'll end up seeing increases in property taxes that will take that plus some away anyway.

Which makes a bigger burden on property owners. Income and sales tax spreads it out more evenly to everybody.

[Bunty]

Does everyone know what they're planning to do with the extra $88.00 in three years. LOL

In three years, you'll get $88: Oklahoma House passes income tax measure | News OK

Buy one or two of the 4 new tires I will need from the wear of the poor roads in Oklahoma. Is the turnpike between OKC and Lawton still in sorry condition for a toll road?

[Bunty]

Which makes a bigger burden on property owners. Income and sales tax spreads it out more evenly to everybody.

Texas people don't seem to mind their high property taxes. They think doing something about it by going to a state income tax would be a bigger nuisance to put up with. For instance, unlike property taxes, the income tax probably would not be figured for you.

[venture]

Which makes a bigger burden on property owners. Income and sales tax spreads it out more evenly to everybody.

Indeed. I definitely would rather see things spread more evenly through a sales tax and start reducing the property taxes. Income tax really isn't that big of a deal to me, especially on the state level. Of course I grew up where you also had local income tax which just made it annoying doing 3 individual tax returns.

[rlewis]

Which makes a bigger burden on property owners. Income and sales tax spreads it out more evenly to everybody.

Even renters bear the burden of the higher property tax in Texas; it's passed on to them through the rent. That's why rent for a simple one bedroom apartment is $600-$700 a month in Dallas-Ft. Worth, compared to $400-$500 a month here. The renters there just don't think about it. It's a very regressive tax system there;the wealthy benefit greatly there.

[ou48A]

Very good food for thought

https://twitter.com/FBNStossel/statu...08968393015298

In the past 15 yrs, 9 states with no income tax gained $146 billion, while 9 states w/ the highest income tax lost $104 billion.

[venture]

Very good food for thought

https://twitter.com/FBNStossel/statu...08968393015298

In the past 15 yrs, 9 states with no income tax gained $146 billion, while 9 states w/ the highest income tax lost $104 billion.

Your source is a 140-character tweet? Really? I'm with Sid, what about the other states. Perhaps you can provide the completely set of data for us to look at and discuss.

[ou48A]

Your source is a 140-character tweet? Really? I'm with Sid, what about the other states. Perhaps you can provide the completely set of data for us to look at and discuss.

That’s pretty normal….question the source when you don’t like what you see.
I doubt he would put this out there without checking its authenticity.

[venture]

That’s pretty normal….question the source when you don’t like what you see.
I doubt he would put this out there without checking its authenticity.

I have no problem with the results, so I don't see why you would say that. I just question a source, with no backing up documentation, that even Wikipedia would reject as a credible source. Now if he linked the report in the tweet that would be a completely different story so we could look at the full data.

Also, wouldn't you want to check the authenticity of the information yourself? Or is fact checking just a dying trait and we truly are destined to become sheep.

[ou48A]

What happened with states like us with low income tax rates?

I haven’t seen any information on the other states.
But it’s pretty clear about what model works and what model doesn’t work for the people.