Lowering the state income tax rate will depend on removing ineffective tax credits and rebates from the books, Rep. David Dank, R-Oklahoma City, said last week at the sixth and final hearing of the joint Tax Credit and Economic Incentive Oversight Committee.
Dank said lawmakers tried to cut the tax rate in the 2012 session, but could not agree on what tax incentives to eliminate.
“Even the most pro-tax relief members, as well as the governor, saw that we could not move ahead on tax relief when we refused to stop the bleeding in the form of tax credits for a few hundred recipients,” Dank said.
Dank chaired the committee.
“It becomes obvious that we have a complicated tax code that does too little to stimulate jobs and growth and far too much to reward and coddle a few special interests,” he said.
“It is time for us to stop listening to the lobbyists and start listening to the people.”
The best way to stimulate the state’s economy is to lower overall tax rates, Dank said, not to hand out specific tax incentives.
Dank said he would once again sponsor legislation to eliminate transferable tax credits and put a two-year moratorium on most of the 41 existing corporate tax credits.
“Either we act decisively to reform and clean up the tax credit mess, or we will once again stiff millions of Oklahoma taxpayers,” he said.