Asst. GOP Leader Says Meacham Doesn’t Understand Economics of Tax Relief

-“This healthy increase (in state tax revenues) comes even though income tax rates were reduced from 6.65 percent to 6.25 percent on January 1.” – State Treasurer Scott Meacham, Journal Record, February 15, 2006

-“What Mr. Meacham doesn’t understand is that tax revenues are growing because of the tax cuts, not in spite of them.” – Assistant Senate GOP Leader Owen Laughlin, news release, February 15, 2006.

State Capitol, Oklahoma City – Assistant Senate Republican Leader Owen Laughlin said Wednesday that comments by the Democrat state treasurer show that he doesn’t understand the basic economics of tax relief.

“I was surprised by the lack of understanding displayed by Treasurer Meacham when he stated that state tax revenues jumped ‘even though’ an income tax cut took effect in January. What Mr. Meacham doesn’t seem to understand is that tax revenues are growing because of the tax cuts, not in spite of them,” said Laughlin, R-Woodward.

Laughlin noted that many tax cuts – especially reductions in the income tax – spur new economic activity, which results in greater economic growth, which then results in larger tax revenues for the government.

“This is a fact that few Democrat officeholders understand today. John F. Kennedy was probably the last major Democrat in office who understood that cutting income tax rates actually results in higher tax revenues for the government,” he said.

Senate Republicans are pushing two major tax relief measures to grow the economy and to attract and keep good jobs: a long-term reduction of the state’s high income tax rate and the total elimination of the state’s death tax.