Isn't it time for the people of Oklahoma to win?
For too long we've let special interests call the shots at the Capitol, putting business interests before people. Less than 5 months later and we're right back to where we started. From the beginning, the Oklahoma House Democrats were pushing for constitutional, recurring revenue to adequately fund our state.
Now, we're looking at costs for defending bad legislation in the courts and a special session at $30K/day because special interests won out. Isn't it about time for the people of Oklahoma to win?
That's why we're fighting for our state. For over a decade, the supermajority in the State House and Senate, and the Governor have tried to cut their way to prosperity - all the while moving the burden from the wealthiest corporations and people to working middle class families and lower-income Oklahomans. We need a solution that is responsible and sustainable, and we have it in the Restoring Oklahoma Plan.
The Restoring Oklahoma Plan Funding Sources:
Restore the Gross Production Tax (GPT) to 4% and 5%
Restore the top income tax at 6% for income over $100,000 for single filers and $200,000 for joint filers and add a top bracket at 7% for income over $200,000 for single filers and $400,000 for joint filers. These brackets will only affect 3% of all tax payers. The average income in the new top bracket would be $1.4 million annually.
Eliminate Capital Gains Exemption. The state allows an income exemption for profit on the sale of real estate investments and stocks. There is little to no benefit of this exemption to the economy of Oklahoma.
Convert itemized deductions to a credit. This would require tax payers to configure their adjusted gross income prior to itemized deductions
Cap the New Jobs Tax Credit at $25 million annually. An income tax credit is allowed for investment in depreciable capital for manufacturing or processing facilities. The credit has unlimited carryover, allowing investors to hold onto the credits and cash them out on an unpredictable schedule. Capping the credit assures that the state will not be required to pay larger than expected amounts in years of downturn. The state paid over $57million in 2016.
End the Coal Credit. The credit has been known to be one of high rates of transferability, allowing other companies not related to the industry to reduce their state tax burdens.
Eliminate the Vendor Discount on sales taxes. Vendors are allowed to retain a portion of state sales taxes collected in relation to the proportion of their overall sales. This "discount" was placed into law to help mitigate costs of employing or contracting personnel to calculate and remit state sales taxes. This discount no longer applies due to electronic calculation and remittance of taxes. Big box stores that are headquartered out of state receive the largest discounts.
Require Combined Corporate Reporting. Oklahoma does not require businesses with a nexus in the state to report all profits on state income tax forms, effectively allowing large, multi-state corporations to harbor profits made in Oklahoma in other states with lower corporate income tax rates.
Eliminate the Equal Opportunity Education Scholarship Credit. The state should not allow the credit to be claimed in any year where any fund for public education experiences a shortfall or failure, or when the amount of state appropriations is not sufficient to meet the needs of a majority of public school students.
Select Service Taxes on Industry. Remove sales tax exemptions on services to specific industries: oil and gas, construction, and certain entertainment production such as motion picture production. These exemptions are offset by tax credits that are available to these industries.
Increase the Cigarette Tax as a part of the larger budget package. Consider a proportional increase in all tobacco products.
We know that Oklahoma isn't living up to its full potential because of years of budget holes that need to be filled at the last minute. That's not the lesson we want to teach our children. By coming together and making the right decisions, we can create an Oklahoma we're proud to call home.
Join us. Ask your State Representatives & State Senators to support the Restoring Oklahoma Plan and share your support on social media using the hashtag #RestoreOK