CHUCK ERVIN World Capitol Bureau
04/21/2002
But it may be a tough assignment to convince voters to support the proposals.
OKLAHOMA CITY -- Sen. Cal Hobson, who helped craft a task force report recommending a major overhaul of Oklahoma's tax system, said there is only one person who can get it approved -- Gov. Frank Keating.
"If he can get the State Chamber of Commerce and all the local chambers of commerce to get on board, it has a chance," said the Lexington Democrat.
That may be a tough assignment. The State Chamber already has expressed its displeasure with the proposal that would make big cuts in the state income tax, but also proposes equally big increases in the sales tax.
However, Chamber President Richard Rush said the chamber will reserve a final judgment until later.
Keating already has embarked on a campaign to enlist the editorial support of the state's major newspapers, and one of his aides said he also will be conferring with chambers of commerce.
One legislator described the governor as "wildly enthusiastic" about the task force proposals.
The governor may be a lot more enthusiastic about the task force recommendations than House Speaker Larry Adair, D- Stilwell, and Senate President Pro Tem Stratton Taylor, D- Claremore, who have been noncommittal so far.
Keating Press Secretary John Cox said the governor is prepared to do whatever it takes to see the tax package is adopted.
"He will go as far as he needs to," Cox said. "He's committed.
"We're working it," he said. "He's behind those recommendations, and he's committed to that."
Not only must Keating get legislators, some of whom are reluctant, to submit the proposals to a vote of the people, he will then have to convince voters to adopt them.
The question is, how much political capital does Keating have left? Most governors are running short of that commodity after four years, much less eight. And Keating's relations with Democratic lawmakers and many significant voting blocs has been contentious.
Voters are going to have to be sure any tax package is a good thing for them, personally, before they support it.
Hobson, who will take over as Senate president pro tem next year, thinks the package designed by the task force of 32 legislators and private citizens is worthy of consideration.
He said it is the "most balanced and serious tax reform" proposal he has seen in more than 20 years at the Capitol.
Whether people like it or hate it all depends on how the proposals impact them personally.
"There are winners and losers when you shift 20 percent of the tax burden, which this does," Hobson said.
The big shift is from the individual income tax to a consumption tax -- the 4.5 percent sales tax, which would be broadened to cover 31 categories of services not previously taxed.
The proposal to reduce the 7 percent tax rate to 4.5 percent and adopt federal standard deductions and personal exemptions would save taxpayers about $776 million in income taxes.
But the tradeoff is an identical $776 million in sales tax increases.
The services to be taxed include such things as landscaping, auto repairs, home repairs, new home sales, motion pictures, watch and jewelry repairs, miscellaneous repairs such as bicycle and lawnmowers, bowling alleys, commercial sports events, race tracks, lawyers, accountants and theatrical productions, to name only some.
Smokers take the biggest hit of anyone, though. The tax package includes a whopping 37- cent increase in the cigarette tax to 60 cents.
Hobson said the cigarette tax hike proposal is an example of something a group of lay people would do that lawmakers wouldn't even attempt.
One of the factions the private citizens haven't been exposed to is tobacco company lobbyists, who almost certainly would bury any similar proposal that came to the Legislature in bill form.
Chuck Ervin, World Capitol Bureau chief, can be reached at (405) 528-2465 or via e-mail at
