My Oklahoma Gazette Column: Death By A Thousand (Tax) Cuts

From my Oklahoma Gazette column published this week:

"Generally, tax revenues grow when personal income does. Since 2000, personal income in Oklahoma has increased by 75.4 percent. During that time frame, state sales tax collections, which typically grow at a rate slightly below personal income growth, have risen by 62.05 percent. 

However, personal income tax collections, which typically grow at the same rate as personal income, have risen by only 26.68 percent since 2000. So, yes, personal income tax collections have risen while Oklahoma has been cutting the income tax — but the collections have not increased as far as they would have. 

In fact, if state income tax collections had risen at the same 75.4-percent rate as personal income, the state would be collecting an additional $1 billion more per year. That’s an additional $1 billion annually that could be educating our children, caring for the needy, improving our roads and protecting us from criminals. 

One small tax cut shrinks core government services. Many small tax cuts, however, cripple those services."