— Editor’s note: One in a series of election stories.



Although Gov. Mary Fallin fell short this year of pushing her tax-cut plans through the Oklahoma Legislature, it appears she intends to take a second stab at the issue.

Fallin’s arguments for lowering the state’s personal income tax rate include job creation, increased productivity and greater prosperity. She has said tax cuts are essential to economic growth.

Two local Democrats competing for the party’s nomination in House District 14, however, questioned the governor’s plans. Both acknowledged a need for reforms but tacked separate courses in how they would address the topic.

Bobby Jefferson said Fallin’s proposal to cut the highest tax bracket from 5.25 percent to 3.5 percent would devastate many state-funded programs. The longtime Muskogee High School wrestling coach and the district’s athletic director said there are better ways than tax cuts to lure new businesses to the state.

Jerry Rains, a former business owner and local rancher, said “tax reform is badly needed.” But instead of cutting taxes, Rains said he would focus on eliminating loopholes.

“I propose getting rid of loopholes that favor big business and concentrate on the growth and development of small businesses,” Rains said. “When these businesses prosper, they hire more workers, are more productive, and make a bigger profit, therefore ensuring a bigger tax base.”

Jefferson, who trailed Rains by 10 percent in a three-man race June 26, said cutting or eliminating the state income tax inevitably would lead to higher property or drastic cuts in services.

“Oklahoma’s tax rate currently is comparable to other states across the nation and is considerably lower than many,” he said. “What I don’t think Gov. Fallin realizes or believes is that our economy will remain intact without her proposed tax cuts.”

Jefferson said the state’s “abundance of natural resources” is an asset other states lack. Those resources, he said, provide “countless business opportunities for industry growth.”

With regard to the state’s income tax, Rains said a better alternative would be to cut regulations rather than taxes.

“A better solution is to cut repressive regulations against these businesses instead of cutting corporate taxes which would put more on the working public,” he said. “Remember that the middle class bears much of the burden of taxation.”

Although Jefferson criticized the possibility of future cuts in the personal income tax, he cited the need for parity. He said it doesn’t make sense for a couple earning $15,900 a year to be in the same tax bracket as a couple that makes $200,000.

“I’m not saying an increase in total tax revenue is the answer,” Jefferson said. “But spreading our current taxation out across the top earners in our state would take pressure off middle- and lower-class families.”

Fallin’s plan would have addressed that anomaly. Research conducted by the Oklahoma Policy Institute, however, showed the proposed elimination of various credits would have increased the tax burden for low- and middle-income wage earners.

Jefferson cited three factors he considers important to attracting new business and broadening the tax base: a well-educated workforce, vocational training and the Quality Jobs Act.

“I strongly believe a state’s economy directly correlates with its public school system,” Jefferson said. “Allocation of our state revenue needs to help public schooling rather than cut funding.”

Jefferson and Rains will square off Aug. 28 in the Democratic runoff election. The winner will face Arthur Hulbert, who ran unopposed for the Republican nomination, in the general election. In-person absentee voting begins Friday for the runoff election.

Reach D.E. Smoot at (918) 684-2901 or dsmoot@muskogeephoenix.com.