A well-known economist is endorsing a proposal for a 10-year phase-out of Oklahoma\u2019s personal income tax.<\/p>
Arthur Laffer, of Laffer Curve fame<\/a>, said a proposal and study by the Oklahoma Council of Public Affairs and Arduin, Laffer & Moore Econometrics would \u201cput Oklahoma’s competitive economy into a top-tier economic policy environment,\u201d reported<\/a> The Oklahoman<\/em>\u2019s Michael McNutt.<\/p>\n \u201cIt’ll lead to a lot faster growth for Oklahoma. You’ve been a very good performing state, … but you still have a way to go to be really superb,\u201d Laffer said after speaking to a joint meeting of the downtown Oklahoma City Lions, Kiwanis and Rotary clubs. \u201cYour income tax is your primary deterrent to further economic growth.\u201d<\/p><\/blockquote> <\/em>The individual income tax comprises roughly one-third of state tax revenues. Opponents, including several university economists, say that abolishing the income tax could have severe fiscal consequences<\/a> and could lead to increases in sales and property taxes<\/a>.<\/p> Gov. Mary Fallin and other lawmakers say eliminating the income tax would help Oklahoma attract and retain jobs, a perspective underscored by Laffer and the OCPA\/ALME study<\/a>.<\/p> From The Oklahoman<\/em>:<\/p>\n Laffer, who played a key role in writing Proposition 13, the California property tax cap initiative, said Oklahoma officials would see more interest by businesses if the state eventually eliminated personal income tax.<\/p><\/blockquote> The study and proposal was met with tacit approval from the Governor\u2019s Office. Patrick B. McGuigan of CapitolBeatOK, which is supported and contracted by the OCPA, reported<\/a>:<\/p>\n Preston Doerflinger, Cabinet Secretary of Finance in the administration of Governor Mary Fallin, told CapitolBeatOK he has studied the OCPA-ALME paper. Asked for a succinct reaction, he said, \u201cLet\u2019s get it on.\u201d<\/p><\/blockquote>\n