What Is the State of Our State? Governor Fallin and Taxes

Capitol Considerations

A Weekly Column by Senator Micheal Bergstrom

What Is the State of Our State?

The other day, Governor Fallin delivered her State of the State message to a joint session of the legislature. In that message she laid out a number of goals she hopes will be attained during this session. Governor Fallin’s top goal: Raise taxes.

Well, that is not exactly true. The governor does want to eliminate some taxes. Let’s start with that.

ELIMINATE GROCERY TAX

Here is an idea I might be able to get behind. While I was out campaigning in my district I knocked a lot of doors and heard a lot of folks complain about the possibility of another penny being added to our already high sales tax. Many also told me of how they drive out of state to buy their groceries, often to Joplin where the tax on groceries is considerably lower than in Oklahoma. Of course, while in Joplin they also go out to eat or go shopping.

All that sales tax revenue and business benefits Missouri.

If we can find a smart way to do this, perhaps by taxing some services, I may be willing to consider such a change that would keep more of those dollars in Oklahoma while reducing the financial burden on Oklahoma’s families.

But then the governor’s next idea is to do away with the corporate income tax because, she argues, the tax forces the legislature to pick winners and losers with specific tax credits. This is about $140 million a year that Governor Fallin suggests we just do away with.

With a budget that is facing a nearly $900 million dollar shortfall, now is not the time to get rid of a revenue stream. Perhaps it is time to pick fewer winners and losers and do away with some more tax credits.

GOVERNOR’S PROPOSED TAX INCREASES

So let’s see what the new taxes are that the governor is proposing:

Sales Tax on Services $840 million

Increasing Fuel Taxes $220 million

Repeal Motor Fuel Purchaser Discount $5.8 million

Cigarette Tax $258 million

There are several more, but I’ll stop there.

I agree with the governor that the state has a revenue problem. We may need to increase some taxes, but we also need to be getting rid of more of the tax credits out there.

If we do raise some taxes, let’s be smart. For example, we should consider a tax on the electricity produced by Oklahoma’s wind farms. When the Clean Line is finished between the Panhandle and Tennessee, between 85% and 90% of the electricity generated by wind in Oklahoma will be heading over transmission lines to other states. People in others states will be getting inexpensive electricity and Oklahoma will get nothing in return. Remember, 93% of wind production is owned by companies based out of state or out of the country.

So, let’s be wise when we do raise taxes to make sure they are a true benefit to our state and our citizens, and let’s stop wasting money on questionable tax incentives.

I commend the governor for urging the legislature to take a look at our tax structure. It is certainly worthy of consideration.

As always, I am interested in feedback from my constituents, so if you have any questions or comments, please email me at bergstrom@oksenate.gov. My office can also be reached by phone at 405-521-5561.

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