logo

 
Home » Articles » News » Government » Legislation station
. . . . . .
January 23rd, 2012 - Kelley Chambers

Legislation station


State leaders look to make Oklahoma more business-friendly in the upcoming legislative session


 

Building on initiatives in the areas of workers’ compensation reform, lawsuit reform and lowering the personal income tax passed last legislative session, leaders in the state House of Representatives and Senate hope to further those efforts in the session that begins Feb. 6.

The Republicans have a perfect storm with their party holding majorities in the House and Senate, as well as all statewide offices. They hope to use that advantage to create jobs; lure new businesses; help existing businesses to succeed and grow; repair and modernize infrastructure, roads and bridges; and eventually do away with personal income tax.

While Democrats have little chance of derailing popular Republican efforts, or even having their voices heard in final legislation, House Minority Leader Rep. Scott Inman of Del City says Democrats will play the watchdog role that Republicans played for years when the state was dominated by Democratic leadership. As minority leader, Inman says he wants his caucus to serve as the conscious of the Legislature.

“Republicans can do whatever they want. We can’t stop you; however, just because you can, doesn’t mean you should,” he says. “We’re going to stand up this year and ensure that whatever legislative issues or ideas that come forward are done so in a way that’s fair for the people of Oklahoma.”

House Speaker Kris Steele of Shawnee agrees with Inman’s assessment.

“Our job is to hold each other accountable,” he says.

BUDGET WOES
Despite Republicans having an advantage, they still will be forced to deal with what Senate President Pro Tem Brian Bingman of Sapulpa calls a “standstill budget.” Last session, some one-time monies and stimulus funds helped balance the budget. That money is gone, and despite growth in state revenues, Bingman sees a lean budget for 2013 with little room for growth.

This year, and in coming years, Bingman predicts the Legislature will work to increase revenues, eliminate the income tax and provide tax incentives to businesses, but he says it must be legislation that does not penalize anyone along the way. If the state eliminated the income tax, those funds will need to come from somewhere.

The minority leader in the Senate, Sen. Sean Burrage of Claremore, says the Legislature must tread lightly when looking to award tax credits so it is in the best interest of the state. He says many tax credits in place now are not providing jobs.

“When we look at these tax incentives, tax credits, we need to look at what is really doing something good for Oklahoma, what is truly providing economic growth and jobs, versus being a handout to special interests,” he says.

Inman warns that with the elimination of the income tax, and the possible jump in property tax to help fill that gap, it could hurt many.

“If you eliminate $2.2 billion out of the state budget — a third of the state budget — and say it’s gone, you can’t fund roads and bridges,” he says. “We don’t want anybody to pay any more tax than is absolutely necessary, and we certainly don’t want to see the state’s budget being balanced on the backs of the poor.”

Bingman says there are no hard-andfast rules for tax credits and elimination of the income tax, and he has no plans to do away with it quickly. He instead favors a gradual decrease like the one passed during the last legislative session that reduced the income tax from 5.5% to 5.25%.

“Nobody wants to pay taxes, but at the same time, we want to make sure we can fund all the necessary things that we think government should provide for to make our state strong,” he says. “There are some great ideas out there, and we will look carefully at each one.”

Gov. Mary Fallin says elimination of the income tax is just one effort to make the state more business friendly. In advance of the session, she has been meeting with business leaders in the state to promote her agenda, and clarify her stance on issues such as income tax-elimination efforts.

“My goal is that we gradually reduce our income tax so we become more competitive with other states in our marketplace,” she says.

 
  • Currently 3.5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
 
 
Close
Close
Close