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Gene Perry / Oklahoma Policy Institute
January 17, 2012 | 11:57 am
Will Reform Recommendations Raise Taxes for Most Okies? The Numbers Behind OK Policy Institute’s Claim
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Joe Wertz
Gene Perry / Oklahoma Policy Institute
An analyst with the Oklahoma Policy Institute said two-thirds of the tax reform panel's recommended tax credit cuts are "broad-based" and would mean higher taxes for most Oklahomans.
Who will tax reform hurt more: corporate special interests or low-income seniors and families with children?
Sen. Mike Mazzei, who co-chaired the tax reform panel, said eliminating dozens of tax credits and “preference items” — to help pay for reductions to Oklahoma’s personal and corporate income tax — would be a blow to special interest groups.
Mazzei reiterated that point last week in a StudioTulsa interview with KWGS’ Rich Fisher.
But in a new blog post, The Oklahoma Policy Institute — which is leading a coalition to fight for the income tax — says the task force recommendation has twice as many broad-based cuts than cuts to corporate special interests.
Only one-third of the proposed cuts will affect corporate special interests, writes Gene Perry, a policy analyst with the Oklahoma Policy Institute. According to Perry’s analysis, the bulk of the cuts — 68 percent, or about $240 million — come from what he calls “broad-based credits and exemptions.”
The task force’s plan would raise taxes for most Oklahomans, Perry argues.
“It’s why the real losers under this plan are not corporate special interests; they are families with children and low-income seniors.”
We broke down the entire list of recommended credit cuts earlier this month, but here’s a look at the numbers behind Oklahoma Policy Institute’s argument.
“Broad-based Credits and Exemptions,” according to the Oklahoma Policy Institute:
| NAME | AMOUNT |
|---|---|
| Personal Exemption | $132,699,190 |
| Sales Tax Relief | $43,212,000 |
| Oklahoma Earned Income Tax Credit | $31,887,000 |
| Child Care | $28,991,000 |
| Oklahoma College Savings Program | $2,412,120 |
| Individuals Sixty-five (65) or older | $474,300 |
| Low Income Property Tax Relief | $226,000 |
| Blind Individuals | $130,722 |
| Total: | $240,032,332 |
