| February 18, 2011

Income-tax reduction is good policy, good politics

Despite all the talk of Oklahoma’s state budget “shortfall” (a word I’m not thrilled with), a plurality of Oklahomans still favors cutting the state income tax.

“It appears that Oklahoma voters understand that income tax rates matter in regards to maintaining Oklahoma’s economic competitiveness,” says OCPA economist Scott Moody. “It is no surprise that Oklahoma is now seeing an influx of people from California, which has one of the highest income tax rates in the country. Lower income tax rates also help small businesses, which can use that extra money to invest and create new jobs. Therefore, cutting income tax rates is not a zero-sum game as opponents proclaim since, in the long-run, lower tax rates spur people to move to Oklahoma or spur businesses to invest—which is good for everyone, including government coffers.”

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