A new report shows that big tax breaks may be causing significant harm to Oklahoma’s economy, reports KFOR. The study by a consulting group in Philadelphia reveals that one specific tax deduction alone has caused the state to lose close to half a billion dollars.
Oklahoma’s capital gains tax deduction has slashed tax revenue by hundreds of millions of dollars, while only creating an estimated $9 million in additional tax revenue.
This deduction states that Oklahomans should not be taxed on the money they make selling land or stock in the state. The loss of this tax revenue would go a long way toward plugging Oklahoma’s budget shortage of nearly a billion dollars.
In a state where some schools have dropped to four-day weeks for lack of funding, some lawmakers are reconsidering Oklahoma’s tax strategy.