Story by Bixby Bulletin www.bixbybulletin.com
Newell Calls for Phasing Out of Income Tax
OKLAHOMA CITY – State Rep. Tom Newell today called for action after last week’s hearing on a bill to lower and phase out the state income tax.
House Bill 1543, by state Rep. Josh Cockroft would reduce the income tax by 1 percent each year, down to 0 percent in 2016. Newell spoke at the House Appropriations and Budget Subcommittee on Revenue and Taxation hearing of the legislation.
“I filed a similar bill to eliminate the state income tax over the next 10 years,” Newell, R-Seminole, said. “As a college instructor of both macro and microeconomics and a firm believer in economic freedom, I believe it is immoral to punish someone for being productive and that it is detrimental to sound economic policy.”
Newell said that with both political parties calling for economic growth policies, the course is clear.
“An overwhelming amount of objective data clearly shows that those states with low or no income tax are growing by almost every positive indicator at the expense of those states with high tax burdens,” Newell said.
Newell said there is no truth to the argument that the income tax must be replaced with a new tax on consumption.
“If government stayed within the bounds of its God-ordained role, even in these down economic times, we would not be scrambling for money,” Newell said. “A reduction and elimination of the income tax will result in economic growth that will more than offset the loss of revenue from the income tax. When people are allowed to keep more of the fruits of their labor, they tend to produce more. They will do one of two things with this money—spend it, which will grow the revenue from consumption taxes without raising the rates, or save it. Saving money is absolutely critical to long-term capital investment.”
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