Oklahoma Senate leaders gave their thoughts on House Democrats’ slate of proposals to bring in $1.4 billion.
Democratic Leader John Sparks said a $1.50 cigarette tax hike is popular enough to pass, but lawmakers need to get serious about reversing income tax cuts.
"When we reduced the state income tax, that increased our relative reliance upon the volatile oil and gas sector, and when we do that, what we're setting ourselves up for is only being able to balance our budget during an oil boom," Sparks said. "If our government only is functional when we're in an oil boom, that's pretty bad management."
The Restore Oklahoma Plan’s major components are raising the gross production tax from 2 to 5 percent and reversing income tax cuts for high earners. Sparks said budget woes have come under a variety of Republican leaders he respects.
"It's not the lack of individual leadership. It's a lack of the Republicans' ability to admit their policies are failing year after year," Sparks said. "Yet, they continue to pursue the same policies that produce the same failures."
Senate President Pro Tem Mike Schulz said he hasn’t reviewed the proposal's specifics yet, but he didn't shoot down the Restore Oklahoma Plan, either.
"But, you know, as I've said all along, I do believe that to get out of this scenario that we're in, it's going to take a combination of some revenue-raising measures, some apportionment reform and some cuts," Schulz said. "So, I don't know that that's a game-changer, necessarily, but certainly another page in the discussion."
Schulz agreed the cigarette tax increase will likely pass this session.
