A proposed reduction in business taxes could be larger than initially anticipated, according to a Senate leader who is advocating the tax reduction. Senator Ted Fisher had originally proposed a $20 million cut in the unemployment tax, but the Sapulpa legislator said today new statistics indicate the reduction could be much larger, possibly in excess of $54 million depending on future economic growth.
"The new numbers indicate we might be able to triple the size of the tax cut. That's great news for Oklahoma businesses and the entire state economy," said Senator Fisher, chairman of the Senate Economic Development Committee.
According to the Senate leader, the latest statistics from the State Employment Securities Commission show that the surplus in the unemployment tax fund would support a tax reduction of $54.4 million.
"The bigger, the better. Oklahoma businesses shouldn't have to pay a penny more into the fund than is necessary. Since there's a large surplus, it's obvious they're paying too much," said Senator Fisher.
The economic growth Oklahoma has experienced in recent years is getting the credit for the unemployment tax cut. Senator Fisher wants to reward Oklahoma businesses that helped fuel the economic expansion.
"If we give hard earned dollars back to the businesses that made it, there's a pretty good chance they'll roll the money back into the economy and create even more jobs.
"This is the biggest win-win proposition to come down the pike in quite some time. We have to take advantage of it." said Senator Fisher.
Two years ago, the Oklahoma Legislature reduced the unemployment taxes on new businesses. The current proposal would apply to all Oklahoma businesses, except those few businesses whose rates are locked in by federal law.