Posted on: September 19th, 2014
Opponents to pro-growth tax policy argue that reducing income tax rates will only benefit the wealthy, hurt workers, and destroy social programs.
So, how does a state reduce marginal tax rates, lead the country in small business income and, at the same time, experience an all-time high in tax collections and spending?
One needs to look no further than the state of Oklahoma. According to the Oklahoma Center of Public Affairs (OCPA), the Sooner State’s commitment to reducing the penalty on work over the last 12 years has reduced the top marginal individual income tax rate by 22 percent, from 6.75 percent to 5.25. Since 85 percent of small business owners (sole-proprietors, partnerships, LLCs, or S-corporations) file as individuals, the reduced rates have led to remarkable growth in their business income.