OCPA has teamed up with Arduin, Laffer & Moore Econometrics to produce a new report entitled “Eliminating the State Income Tax in Oklahoma: An Economic Assessment.” We estimate that by phasing out the income tax over a 10-year period—and not raising other taxes—Oklahoma could expect a significant increase in state GDP growth, personal income growth, and employment growth. Specifically:
• By 2022, state GDP would be $53.4 billion, or 21.7 percent, larger than it would be without the tax reform.
• By 2022, personal income in Oklahoma would be $47.4 billion, or 20.6 percent, larger than it would be without the tax reform.
• By 2022, the proposed tax reform would create 312,000 more jobs in Oklahoma than otherwise would be created.
Former Reagan adviser Art Laffer, the visionary “Father of Supply-Side Economics,” discussed the phaseout idea at an important speech last week in Oklahoma City at a joint meeting of the Downtown Rotary, Kiwanis, and Lions clubs, and further discussed the idea with me here.