Oklahoma
With Oklahoma top 10 in GDP growth, Stitt says tax cuts can keep it…
Oklahoma’s state gross domestic product (GDP) growth is stronger than all but eight states, according to recent data. Some policymakers welcome that news and want to keep the trend going.
Gov. Kevin Stitt says tax cuts—specifically, putting the state’s personal income tax on the path to full repeal—is the best way to achieve that goal.
“Long term, my job is to try to grow the state and make us the most business-friendly state,” Stitt said. “And I would prefer to have an income-tax cut, get us down to zero.”
Lawmakers are currently discussing tax cuts with calls to cut the personal income tax and exempt groceries from the state sales tax both being debated. Lawmakers have $543 million in growth revenue available this year.
However, Senate President Pro Tempore Greg Treat, R-Oklahoma City, recently said he does not support passage of both proposals this year, saying that “we cannot have both a grocery tax cut and an income tax cut this year.”
Stitt has said he would sign both tax cuts into law. But if he had to choose just one, he said he would select the income-tax cut because it would make Oklahoma more attractive for business investment, which results in the creation of more jobs and higher wages.
“That actually is going to help education. It’s going to help infrastructure. It’s going to help workforce. It’s going to help quality of life,” Stitt said. “Because we’re going to have more and more businesses moving here.”
Oklahoma’s state economic growth is currently stronger than what is occurring in much of the country. When ABC News recently reviewed state economies, the news outlet found that Oklahoma recorded 6 percent GDP growth, annualized, in the third quarter of 2023, based on U.S. Bureau of Economic Analysis data.
Only eight states had higher real gross domestic product growth than Oklahoma.
Notably, of the handful of states with stronger GDP growth, three have no personal income tax: Florida (6.1 percent GDP growth), Nevada (6.3 percent GDP growth), and Texas (7.7 percent GDP growth).
Lawmakers in Nebraska, which was also among the eight states with stronger GDP growth than Oklahoma, voted last year to lower that state’s personal income tax from 6.64 percent to 3.99 percent by 2027, which will give it a significantly lower tax rate than Oklahoma.
The top bracket in Nebraska also kicks in at a much higher level than Oklahoma’s top bracket. Nebraska’s top personal-income-tax rate is imposed on individuals with income above $37,130 and married couples with income above $74,260. In contrast, Oklahoma’s top income-tax rate is imposed at $7,200 for single filers and $12,200 for joint filers, meaning Oklahoma’s tax impacts low-income families much more aggressively.
Grocery Exemptions and Unintended Consequences
Proponents of exempting groceries from the state sales tax have argued that low-income families will get much more benefit from that change than from an income-tax cut.
But research shows that is not necessarily true.
In April 2022, the Tax Foundation found that the poor actually pay more in sales taxes when states exempt groceries from the sales tax because the sales-tax rate on other goods is typically kept higher to make up the difference.
“The poorest decile of households experiences 9 percent more sales tax liability with a grocery tax exemption than they would if groceries were taxed and the general rate were reduced commensurately,” the Tax Foundation reported.
Most states also impose the sales tax on prepared food even when they exempt groceries from the sales tax. Since low-income families tend to rely on prepared food more than upper-income families, lower-income families disproportionately pay more in sales tax on food items even in states that exempt groceries from the sales tax, the Tax Foundation noted.
In March 2023, the State Chamber Research Foundation similarly noted that calls to exempt groceries from state sales tax are “popular, yet often economically counterproductive.” If a sales tax is applied broadly with fewer exemptions, that translates into a lower sales-tax rate that “limits distortions in economic decision making,” the foundation found.
“That is, compared to other types of taxes (such as income tax), broad-based sales taxes generate less influence on the individuals’ economic decisions,” the State Chamber Research Foundation stated. “Thus, generally speaking, states do better to rely more on broad-based sales taxes than on taxes on labor or capital investment, such as income tax or tangible property taxes. From a state revenue perspective, sales taxes tend to be a more stable revenue stream than income taxes, enabling more predictability in state budgeting.”
The Tax Foundation recommended that policymakers provide a $75 per-person tax credit to offset the impact that grocery sales taxes have on poor families, rather than adopting a complete sales-tax exemption for all grocery purchases.
“Sales taxes are more stable and pro-growth than many other forms of taxation, especially income taxes, so policymakers have an opportunity to increase tax progressivity, enhance revenue stability, and improve economic competitiveness by taxing groceries, providing a credit, and using the remaining revenue from base broadening to cut income taxes,” the Tax Foundation stated.
Stitt has said an expansion of Oklahoma’s existing tax credit for grocery purchases by low-income families is one way to address concerns about tax regressivity.
Supporters of income-tax cuts have noted that Oklahoma’s economy has continued to grow following prior tax cuts, which have lowered the state’s income tax from a top rate of 7 percent to 4.75 percent today. That growth has offset the projected “losses” from income-tax cuts and allowed state government spending to continue increasing.
While Oklahoma’s economy appears stronger than most today, Stitt has noted those dynamics are subject to change based on what policymakers in other states do—and what policymakers in Oklahoma do, or don’t do, to keep the state attractive to business investment and job creation.
The governor has noted, repeatedly, that many states are now cutting their income-tax rates and Oklahoma could fall behind.
“If you look at the area around us, Nebraska has just cut taxes and Arkansas and Iowa,” Stitt said. “We have to stay up with our region to be the most business-friendly state.”
A contentious debate over water and growth is intensifying in Yukon as residents and city leaders grapple with the long-term costs of supplying major industrial projects, including a data center that uses up to 3 million gallons a day.
The discussion spilled into another packed Yukon City Council meeting, where residents learned how strained and expensive the city’s water outlook could be over the next 25 years.
Emotions ran high, with one resident comparing city leadership to a Nazi regime.
Yukon’s water supply plan examines eight options, including five aquifers, non-potable reuse water, direct potable reuse water, and purchasing 2 million gallons a day from Oklahoma City.
Projected costs exceed $200 million, with millions more expected over the next 25 years for operations and maintenance.
The data center was part of the conversation from the start of the water study, which began in late 2024.
The facility uses up to 3 million gallons a day to cool its servers. One option discussed for meeting that demand is a non-potable supply providing 3 million gallons a day, with $55.9 million in capital costs and a required 18-inch pipe stretching 3.5 miles.
The option is recommended to meet great industrial demands, including a data center.
Council member Rick Cacini said his focus is on residents’ needs rather than industrial users. Cacini said, “We had water problems 8 years ago when I started, and we have water problems today.”
Another council member raised the idea of taking cost out of the equation when considering whether to supply water to the data center.
Residents spoke out one after another against the data center after hearing details of the water plan and costs.
One resident referenced Piedmont, where two data center proposals were tabled on Monday. Another resident said, “It’s not a good deal for us, and the other cities know it already.”
Some residents escalated their criticism of city leadership. One resident said, “I voted for Pillmore, and I regret that vote more than anything probably I’ve ever done in my life because this feels like some nazi regime.”
Others called for city leaders to be recalled. “We will collect those signatures within 30 days, and we’re gonna remove you.”
Concerns also grew over the data center agreement, centered on the purchaser having an “out” while the seller does not.
The city manager was said to have gotten something wrong in August.
The meeting ended with Cacini threatening to sue Mayor Brian Pillmore over comments made in an early May meeting.
Pillmore was not at the meeting, saying he was on vacation with his family.
INOLA, Okla. — Oklahoma Attorney General Gentner Drummond has filed a petition in Rogers County seeking to block a proposed aluminum-smelting facility in Inola.
According to Drummond, Emirates Global Aluminum holds a 60% controlling interest in the project. The company is based in the United Arab Emirates.
Century Aluminum, a company headquartered in Chicago, owns the remaining 40%.
If completed, Oklahoma Primary Aluminum would be the largest primary aluminum production plant in the United States. However, the facility would produce hazardous waste, which has raised concerns in both the Inola community and across the state. Billboards have been spotted along Highway 412 in Inola, warning others about the proposal.
The facility would also draw more than 1,000 megawatts of continuous energy.
“A primary aluminum smelter does not belong in a community’s backyard, and its emissions do not respect property lines,” Drummond said, adding that winds could carry pollutants into the surrounding northeastern Oklahoma communities. “The injury is imminent, it is grave, and it is irreparable.”
However, Oklahoma Governor Kevin Stitt has criticized Drummond’s actions, saying the facility would be one of the state’s largest economic development projects in history.
It is important to note that Drummond is currently running for Governor.
“As soon as President Trump made his endorsement in the governor’s race, Drummond dropped the act and showed his true colors,” said Stitt. “Now he is turning his machine against one of President Trump’s top priorities, once again weaponizing his office to settle scores instead of serving Oklahomans. President Trump’s aluminum project in Inola will rapidly grow Oklahoma’s economy and strengthen America’s supply chain for generations, while Drummond turns his back on our state in favor of cheap political gimmicks and personal gain.”
President Trump has endorsed Mike Mazzei in Oklahoma’s gubernatorial race. The Republican primary is scheduled for June 16.
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Oklahomans will soon see semis on the road without a driver inside. That has people asking questions about safety.
The Oklahoma legislature passed a law in 2019, which was modified in 2022, allowing for fully autonomous commercial trucks on Oklahoma highways as long as they meet federal safety standards and follow state traffic laws.
The Oklahoma Highway Patrol is tasked with governing the operation of these trucks on Oklahoma roads. Troopers have been meeting with the truck makers and have trained to learn as much as possible about these trucks before they start operating. News On 6 asked troopers questions like: How will troopers pull them over? How do the trucks avoid crashes? How do the trucks handle unexpected situations?
Nearby states like Texas already have these trucks on the roads, which OHP says is helpful.
“We did have a lot of the same questions the public has. We have a lot of the same concerns about safety,” said Lieutenant Mark Southall with OHP. “We haven’t heard any bad stories from these other states. This company claims they’ve traveled two million miles without an at-fault collision. Meaning they have not been the causation of any collision.”
High-tech cameras in the trucks
OHP says they learned the trucks have cameras that can see a small animal 600 meters away, day or night. This camera system helps the trucks avoid crashes or anything in the roadway.
“We learned the camera systems in these vehicles are very sophisticated, that they can capture an image as small as a small animal up to 600 meters away. Looking at that the human eye can’t see 600 meters away or see something that small, but these cameras can pick that up and begin to make maneuvers to make sure they stay safe,” said Southall. “The cameras are very, very accurate, and they can avoid those crashes. We watched videos when we went to this training where we watched them avoid those crashes.”
How does the truck handle an unexpected road closure?
OHP says the trucking companies say the trucks have been put through just about every situation imaginable.
“The company has put this vehicle using AI through multiple different situations and scenarios that it’s learned from. If it comes upon a situation it wasn’t prepared for, using the camera system inside the vehicle, I think it begins to recognize what it needs to do,” said Southall.
How does law enforcement pull over the trucks?
“These trucks, from what we are told, are made to recognize when they are being stopped, they are made to recognize the red and blue lights and pull over to the shoulder,” said Southall. “If the vehicle senses red and blue lights and maybe they are not being pulled over, they’ll still pull over to the shoulder and stop and let the emergency vehicle go by.”
How does OHP get information if there is no driver?
OHP says there is a number on the cab of the truck that they call, and it takes them to a dispatch center. All of the trucks are equipped with a lock box with the truck’s documentation.
“The dispatch center will give us a code to be able to get into the box, and we can look at the documents on the truck from there,” said Southall.
What if a citizen sees a truck that has crashed or is on fire?
If a citizen sees the truck crashed or on fire, they can call the number on the cab, which goes to the dispatch center.
What if the truck has a mechanical problem while on the road?
OHP says if the vehicle has any sort of malfunction, it is supposed to pull over to the side of the road and stop, and it will alert dispatch.
Will the trucks be on every highway in Oklahoma?
The trucks won’t be on every highway in Oklahoma. For now, the trucks are expected to only run on the major travel routes like I-35 and I-40.
“We don’t work for this trucking company; our interest is working for the people of Oklahoma to make sure these roadways are safe. This is something the state legislature made state law, and we’ve got to begin to work with it so we can understand it,” said Southall.
The trucks could be on Oklahoma roads with drivers for testing as early as this month.
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