Articles

Both in Oklahoma and nationally, the labor force participation rate has modestly improved since a steep decline caused by the Great Recession, but that recovery from a cyclical decline has likely peaked.

Due to the issue of global warming, or climate change, or catastrophic weather—that is, the claim this real-or-not phenomenon has resulted from mankind’s production of carbon dioxide and the resultant increase in that trace gas’s concentration in the atmosphere—the federal government and many states have encouraged investment in wind-powered electricity generation.

In a report from the state of Oklahoma Incentive Evaluation Commission on the tax credit for zero-emission facilities, the commission made clear that state subsidies for wind power generation in Oklahoma are decimating the state budget.

The sales tax is perceived as a “good tax” because it taxes consumption and therefore minimizes tax-induced distortions in the rest of the economy. For example, a do-it-yourself homeowner who goes to Home Depot to buy a hammer to hang a picture is doing so for personal use, i.e., consumption. Yet, that same hammer could have been bought by a local carpenter who will use it to build cabinets that will be installed in new homes. In this case, the hammer is a business investment.

University of Oklahoma president David Boren is leading the charge for a 22 percent increase in the state sales tax rate. But of course such a tax hike would have many harmful effects.

The Midwestern governor currently occupying the greatest media bandwidth is the one just selected for a spot on the GOP ticket. We can certainly expect to see Indiana Governor Mike Pence’s name all over the news for the next four months, but it’s also worth taking a look at how other Midwestern governors are making a real impact, and at the state level.

As policymakers prepare for the 2017 legislative session, it is likely that they will be looking for areas where cost savings can be found. I would suggest starting with the two largest items in the state budget.

Oklahoma’s education blob—school unions, education schools, and their allies—is becoming unusually shameless in its determination to vote itself another taxpayer bailout. Of course the blob is always on the lookout for another hustle. But in Oklahoma this year, things are getting to a point that might make even Donald Trump blush.

Illinois offers a contrast with Oklahoma this year. In President Obama’s home state, liberal Democrats have supermajorities in both the House and Senate. Here in Oklahoma, Obama never won a single county and Republicans hold significant majorities in both legislative chambers. Yet we have one thing in common: state budget troubles.

Oklahoma’s budget crunch has been much in the news lately. But imagine how much worse the situation could be.