Signs of a diversifying economy are appearing in Oklahoma, as the state treasurer’s office recently announced that the state’s revenue had increased for the month of April, even though oil and natural gas prices were still low.
In the latest edition of the Oklahoma Economic Report, State Treasurer Ken Miller wrote that unemployment in the state was three points lower than the current seasonally-adjusted national unemployment rate, which sits at 8.2 percent and credited the state’s recent economic growth to higher income and sales tax collection rates.
He also levied criticism at out-of-state commentators, such as Wall Street Journal writer Stephen Moore, who were opining negatively on Oklahoma’s “failure to eliminate the state income tax.”
“Tax reform should not be confused with simply eliminating the state’s largest revenue source on a wing and a prayer,” Miller wrote. “Tax cut promises are easy to make when necessary cuts in spending and tax incentives are ignored.”
Miller lambasted the comparison of Oklahoma to Texas, which does not currently have an income tax.
“One editorial pointed to Texas’ lack of an income tax as proof that Oklahoma shouldn’t have one either,” he wrote. “It stated that Texas pays its bills with a sales tax, but ignored its property tax burden is about three times higher than in Oklahoma. Interestingly, Oklahoma has had positive in-migration from Texas for three years running and a per capita income growth rate that has outpaced most no-income tax states during the last decade.”
The report claimed that due to the rising income and sales tax collection rates, the state had earned more than $1 billion in revenue, an increase of 7.7 percent from last April, while gross production dropped by more than 20 percent.
“People are working and earning more money, so we’re seeing an increase in income tax collections, and people are buying more goods, so we see an increase in sales tax collections,” Deputy Treasurer Tim Allen said over the phone on Friday.
He said that the treasurer’s office has seen a steady growth in income tax and sales tax collections for a while, and they’re continuing to rise.
“We continue to see positive signs in the Oklahoma economy,” he said.
Other areas of the report dealt with the history of Oklahoma’s energy development as well as details on the Keystone XL pipeline, which will run from the Alberta Tar Sands in central Canada to Cushing, Okla. The line is controversial among environmental groups because of initial plans to run it through a highly sensitive area above the Ogalalla Aquifer, the largest fresh groundwater reserve in the western hemisphere.
Gov. Mary Fallin will be representing Oklahoma at the 2012 Global Petroleum Show in Calgary, Alberta, Canada this week, where she will be speaking with industry leaders about the pipeline, according to the Associated Press.