Tax Credits Are Not The Solution To Job Creation
Overspending of our State budget has many politicians looking in the wrong place to solve the problem. They are talking about borrowing more money from our children's and our grandchildren's future by robbing the state's emergency savings account.
Most politicians desire to "raise" revenue to match the current spending levels. My goal is to cut spending to match the current revenue without indebting our future or draining the state's savings account. The solution to the overdrawn budget is to cut spending and lower taxes.
Over $5 billion dollars has been taken in the past several years from the citizens of Oklahoma. This great amount of money has been filtered through state government to be redistributed to "favored" business. All in the form of so-called "Tax Credits". These "Tax Credits" are nothing more than government subsidies, and always cause higher taxes to be taken from the masses to profit a select few.
Based on my understanding of the Constitution and free market principles, I have been a long-standing proponent of eliminating "Tax Credits". After seven years of debating and voting against government subsidies, we are seeing a change. Finally other legislators and even the governor this year are following my leadership and asking for some "Tax Credit" reform.
"Tax Credits" are a government subsidy program which gives politicians the power to manipulate approved behavior, by giving special tax benefits to their selected friends at the expense of all other citizens. This is the reason why I vote against government subsidies. Eliminating subsidies and controlling the #1 issue of over-spending will set in motion a dynamic economy to create thousands of jobs in Oklahoma.
Over the last two decades, there has been a proliferation of corporate welfare in Oklahoma. Politicians have discovered they can financially support selected businesses in their districts by giving away large chunks of taxpayer dollars. Much to the chagrin of we who are capitalists, it was recently expressed on the Senate floor regarding economic development that: "Government's role is to set policy which will encourage proper behavior."
In other words, the senator who emphasized this believes it is government's responsibility to artificially control prices through tax credits. Lower prices would compel the consumer to purchase from government-favored companies rather than from its competitors who do not receive subsidies.
The Oklahoma Constitution clearly states, "Government is instituted for our protection, security, and benefit." It is not government's role to manipulate corporate behavior with tax dollars. Confiscating taxes from one and redistributing it to another, then calling it Economic Development, is not a proper function of government and is immoral at the least.
Beside the unconstitutional aspect of government subsidization of business, redistributed tax credits are diametrically opposed to the capitalist free enterprise system. Thomas Jefferson said, "The aim of the American government is to leave their citizens free, neither restraining nor aiding them in their pursuits."
Entrepreneurial ingenuity and personal productivity are the keys to success and the secret to the American dream. Government intrusion, over taxation, and regulation are sure to stifle prosperity and turn the dream into a nightmare. But if not hindered, any individual wishing to succeed has an equal chance to compete in the marketplace.
My solution to the budget problem is simple. It is based on free market principles and will have a profound positive impact on job growth. We should cut $1.3 billion dollars in spending and stop the tax credit subsidy programs which continue to plague our state budget with bigger deficits. By doing so, we place the money back in the hands of individuals and allow the market place, not politicians, decide who the winners and losers will be.
Dedicated to Liberty,
State Sen. Randy Brogdon (R-Owasso) is running for Governor. To learn more about him, visit www.RandyBrogdon.com. Three other Republicans are running for governor: Congresswoman Mary Fallin (R-OKC), Yukon businessman Robert Hubbard, and retired Oklahoma City businessman Roger Jackson.