A progressive roll in on marginal wells was jointly introduced by the Speaker of the House and the Pro-Temp of the Senate. It is a good start to reclaiming some of the revenue lost on marginal wells. The State should see in the neighborhood of $160 million of added revenue. We need to go deeper with the rollback/roll-in of tax incentives/credits but for the time this is about as good as we are going to get on the oil side. HOWEVER, We must look closer at wind. Although the tax structure is somewhat different we can still roll-in partial taxes outlined below. It is a win wind 😉 situation for everyone! Year #1 25%, #2 10%, year 3 10%, and year 4 5%. This brings the total paid at year for to just 50% of the taxes the wind companies would have or should have paid. Starting on year 5 the tax structure goes back to 25% and and so on and so on. It will work and it is honorable. Legislators, as you read this know that I understand the business side and no one likes to pay in more and in this case very little at all, but………it is their duty to pull some wait. As much as businesses may talk about all the jobs they create and revenue they may generate for communities, the truth is….they are making money and this industry should carry its portion of the weight. Besides they are actually receiving millions in refunds while the pay zero in. My plan is simple and will work. Millions are there and our State needs it. Step up and be bold and take care of those who can not take care of themselves when it comes to these matters. It will work!!!!!!!! And thank you for looking for the WMD and finding as you did with marginal wells.
Originally post was at the beginning of this year:
We have seen multiple revenue failures since this was originally posted. The one cent sales tax will go before the people and a few bills dealing with easing the restrictions how school $$ may be spent. Other than that, talk is about it. Stopping some tax credits has been teased but nothing sound has surfaced that will make a significant difference. Gimmick ideals such as the smokers tax have been put forth and bonds that borrow against other state monies….and of course they will be paid back with interest. In essence all these things do is borrow time while getting upside down and no closer to solving the problem. It’s time to start making wise decisions and realizing that some ideologies need to be shelved and new ideals put into place. I still believe in a progressive but fair roll back on tax credit/incentive programs. I have outlined this somewhat below in item 2 . It will work. It may need tweaked here or their, but it is fair and non aggressive towards any company. At the end of year 4 the company’s start back over at 25% of what their taxes would be and move towards 50% in year 4. Simply start over again. This will generate more than $1 Billion a year. The majority of corporate businesses will see the value. It’s not easy to change but change we must. Below is the original post.
Revenue Failure is the new dirty word that we are all talking about. But for some it seems an opportunity… Those of us that know better are thinking, for who? Oh yes yes yes, its an opportunity for those in education to contemplate how they (we) are going to continue to give our students the best we have. We will teach, serve hot meals, transport and meet many other needs they have not because we have more revenue than ever “legislators” but because we took an “OATH”… Did you???
Now back to that opportunity you talked about… Admitting one has messed up is hard at times and I understand that ideology on the surface is a very intriguing thing. However, wisdom must trump ideology when the facts are presented as they were many times in the past that support taking a different path. So here are 4 ways to get back to a positive side of the revenue. ..
1. Do not allow tax cut to inniate.
2. Start progressive rollbacks on tax credits/incentives. Example: tax at yr1- 25%, yr2-10%, yr3-10%, yr4- 5% bring rollback tax to 50%. On horizontal drilling it would be $200 million/year. Not to pick on the oil producers at all (I was in the business) their are many more millions in other industries as well. I just use oil because our legislators put all their (ours) eggs in one barrel.
3- Allow school districts to use State controlled monies to be used as needed with no strings. This will allow the districts to utilize the monies to best support their students.
4- PASS the 1 cent sales tax. We need it. Our students need it!
If all these things were put into play overtime Oklahoma could see over 1 Billion in revenue per year more than is projected to date given our current circumstances.
It wont be easy. There will be every excuse in the book used. Some business may even say they will leave….but they wont. Oklahoma has been good to corporations and we will always treat them as a partner. We just need them to help carry more of the load than they have. Well, actually the same load the rest of us have carried. When its all said and done the State will be better equipped when down turns happen in the economy.
From where I sit barring any situation to drive (spike) oil prices back up, oil will continue to stay down if not creep a little lower. It will start rising due to a trade agreement the President signed a few days ago but should be a slower and much more stable growth. But who knows the good legislator says we are only one war away from prosperity! I hope that is not how we get there, sir…
So our part…spread the message that we seek accountability. We expect them to fix it the right way. Tweet & retweet, post on facebook, call your legislators or go see them in person. Feel free to post my Blog Post on your Facebook. I do not utilize that realm at this time. Anyway to get engaged! That IS who we are! United as ONE! Engaged on behalf of those who look up to US!