Oklahoma Cuts Tax Expenditures
June 10, 2010
Oklahoma is looking to cut tax expenditures:
A bill that suspends more than two dozen tax credits for two years to help plug a $1.2 billion hole in the state budget has been signed into law by Oklahoma Gov. Brad Henry.
The deferred tax credits include those for the restoring of historical buildings, certain job creation and the generation of wind power.
As states in bad fiscal shape look to balance their budgets, broadening tax bases could be preferable to tax rate increases. There is some benefit in cutting distortionary tax expenditures. And broadening bases now can enable rate cuts in the future. One good thing to come out of the state fiscal mess is that some states have stopped to examine what they are getting for expensive tax expenditures.
Currently Christie wants to suspend New Jersey’s film tax credits.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback