
Economy
Oklahoma’s ranking slips as other states advance pro-growth reforms
Jonathan Small | May 19, 2025
In politics, there is an unfortunate tendency among lawmakers to pass significant policy reforms … and then rest on their laurels.
Unfortunately, one year’s progress does not translate into permanent victory, as can be seen in the latest edition of the “Rich States, Poor States” report authored by economists Arthur Laffer, Stephen Moore, and Jonathan Williams.
The report ranks states in a variety of categories, including tax rates, workers’ compensation costs, and the number of public employees, among other policy variables.
In the latest edition, Oklahoma fell out of the top 10 states.
This year’s publication ranked Oklahoma 11th for its economic outlook. That’s a significant decline since Oklahoma was ranked as high as third just four years ago. The decline in Oklahoma’s ranking is primarily the result of stagnation, not the rollback of past reforms.
Put simply, officials in other states across the country have proceeded with tax cuts. Policymakers in those other states are continuing to work on generating a pro-growth climate. As those states have progressed, Oklahoma has largely stood pat. Oklahoma fell four spots since 2021 in both the “Top Marginal Personal Income Tax Rate” and “Personal Income Tax Progressivity” variables as other states cut their taxes and moved to flat rates.
To cite just one example in our immediate region, Arkansas moved ahead of Oklahoma in the report’s rankings thanks to an aggressive series of tax cuts. Arkansas came in at number 10, which is 13 spots ahead of where Arkansas was ranked in 2021.
Louisiana has seen a similar climb after extensive tax cuts, moving from 27th to 18th since 2018.
Our lawmakers have done much to make Oklahoma more competitive and attractive to those looking to work and invest. Our top income-tax rate has been cut from 7 percent in the 1990s to 4.75 percent today, among other reforms.
If officials in other states had not chosen to respond by cutting rates in their states, Oklahoma might still be in the top 10. But that’s not how competition works. It’s not enough to place in the top 10 one year. The challenge is to stay there.
Early in its existence, Ford dominated car sales because of its assembly-line reforms, which included producing only black cars because changing colors slowed the process. The company ultimately had to shift strategies and offer additional colors to stay competitive. Oklahoma lawmakers must have a similar mindset to keep our state growing in population and economic power.

Jonathan Small
President
Jonathan Small, C.P.A., serves as President and joined the staff in December of 2010. Previously, Jonathan served as a budget analyst for the Oklahoma Office of State Finance, as a fiscal policy analyst and research analyst for the Oklahoma House of Representatives, and as director of government affairs for the Oklahoma Insurance Department. Small’s work includes co-authoring “Economics 101” with Dr. Arthur Laffer and Dr. Wayne Winegarden, and his policy expertise has been referenced by The Oklahoman, the Tulsa World, National Review, the L.A. Times, The Hill, the Wall Street Journal and the Huffington Post. His weekly column “Free Market Friday” is published by the Journal Record and syndicated in 27 markets. A recipient of the American Legislative Exchange Council’s prestigious Private Sector Member of the Year award, Small is nationally recognized for his work to promote free markets, limited government and innovative public policy reforms. Jonathan holds a B.A. in Accounting from the University of Central Oklahoma and is a Certified Public Accountant.