Weekly Opinion Editorial
Bon Appétit
by Steve Fair
430 bills made it to Governor Kevin Stitt’s
desk for signature during the regular session.
The governor vetoed a few bills, including part of the budget, which is unusual
when the governor and legislature are from the same Party.
Stitt claims he wasn’t a part of the
budget process, criticized the tax relief measures in the record $9.8 billion
dollar state budget (+9.7% over last year) and took issues with the tax rebates
proposed by the legislature. Calling the
plan to send $75 to all single tax filers and $150 to couples, ‘a political
gimmick,’ Stitt said it was a page out of President Joe Biden’s playbook. “I never expected to see Republicans waste
$181 million sending government checks out,” the governor said.
Stitt also vetoed a bill to eliminate the
1.25% tax on all vehicle sales and the attempt to override it failed in the
House. Governor Stitt has issued a call
for a special legislative session starting June 13th (2 weeks before the primary election) to
discuss cutting the state income tax by .25% and eliminating the state sales
tax on groceries. Three observations:
First, eliminating the sales tax on
vehicles is a good idea. Oklahomans
currently pay 3.25% excise tax on vehicle purchases. In 2017, the legislature removed the 1.25%
vehicle sales tax exemption, meaning Sooners paid 4.5% when they brought a
vehicle, which cost hard working Oklahomans about $165 million a year. The
governor claims he wants real tax relief for Oklahomans, but vetoed a proposal
that would do just that? Restore and
make the exemption permanent!
Second, everyone but Oklahoma taxpayers
got a raise. This year, the legislature
appropriated more money for every state agency, gave raises to law enforcement,
the judiciary, and other state employees.
Of the nearly $10 billion budget, about $2.5 billion is going into the rainy-day
fund. In other words, Oklahoma taxpayers
‘overpaid’ their tax bill by $2.5 billion but the state government is going to
keep the money just in case it’s needed (which it always is).
The Oklahoma legislature is required to balance
the budget every year. The state
constitution requires the legislature not spend more than Oklahoma government
take in. Unfortunately, the constitution
doesn’t require taxpayers get back any excess- and they seldom do.
The governor proposes elimination of tax
on food and cutting the income tax by .25%.
Stitt claims it would save the average Oklahoma family about $500 a
year. But based on estimates, both the
governor’s proposal and the legislature’s plan would reduce state revenue by the
same amount.
Third, the governor and the legislature
don’t seem to be getting along. House
Speaker Charles McCall, (R-Atoka) said the governor has made some ‘inaccurate
and misleading’ statements about the state budget. Governor
Stitt said he was ‘cut out of the budget process,’ and that he is looking for
the ‘smoke filled back room,’ where the budget is crafted. He says he did not see the budget until 9pm
before it was released to the public the next day.
In Oklahoma, the legislature has responsibility
to craft the budget, but the governor has the right and responsibility to
review and veto. The governor proposes
and the legislature deposes legislation.
Both sides would be well served to recognize the need to cooperate and
avoid expensive and time-consuming multiple special sessions that cost taxpayer’s
money.
According to the Consumer Price Index, the
price of beef in the U.S. is up +21% over last year. The cost of a good steak dinner at a nice restaurant
is about $75 with tip.
The Oklahoma legislature proposes giving you back enough of your tax dollars to have a nice steak dinner. The governor wants to string that dinner out over a year. Bon Appétit!
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