Already the single largest source of tax revenue for the state
Oklahoma City (March 31, 2014) – The State Chamber has long advocated for an education system that will prepare our students for college or a career. With a focus today at the State Capitol on education funding, some are calling for a tax increase on horizontal and other drilling practices as a source for that money.
“Oil and gas already accounts for 22% of all tax revenue to the state, more than any other single source,” said State Chamber of Oklahoma President and CEO Fred Morgan. “To look at it as some sort of golden goose that will just keep providing larger and larger streams of money is dangerous.”
The State Chamber is concerned that raising the tax on horizontal and other drilling activities will lead to companies reducing their operations in Oklahoma. Oil-field services are a volatile part of the industry and drilling is typically the first thing to be cut when companies need to reduce spending.
“Businesses are already a large funder of education and we are not in favor of increasing taxes on one of the most important industries in the state,” Morgan said. “It’s sending a bad message to businesses of all types that when lawmakers want more money to spend, they will look to the business community to provide it.”