Saturday, January 31, 2009

House Leaders Promise Oklahomans Will Get Tax Refunds, Unlike Californians

In light of California officials recently announcing the delay of state tax refunds, House Republican leaders assured Oklahomans today that they will get the money they are due from the state government.

California's latest budget woes stand in stark contrast to Oklahoma's situation and prove the wisdom of the fiscally conservative policies enacted by the Legislature in recent years, House Speaker Chris Benge said.

“Under no circumstance do Oklahomans need to worry about not getting their tax refunds. Even the suggestion of such an idea would be dead on arrival under Republican leadership in the Legislature,” said Benge, R-Tulsa. “California's fiscal policies have put it on the brink of financial disaster while Oklahoma's conservative policies have us better prepared to deal with tough economic times.”

According to reports, California's budget deficit will soon total $40 billion – a budget hole more than five times the size of Oklahoma's entire state budget.

Officials have warned that California could run out of cash as early as next week. The state has already imposed a delay on tax refunds, aid to students and the poor could soon cease, and some state offices may reduce hours.

To fill the budget hole, California officials are considering a wide range of tax increases, including a hike in the state sales tax, an increased beverage tax, and new taxes on some services and activities, such as car repairs.

“California has the world's eighth-largest economy, yet they can't even perform basic functions of government – and they plan to charge their citizens more for less,” said state Rep. Jeff Hickman, a Fairview Republican who chairs the House Revenue and Taxation Subcommittee.

“In comparison, we have enacted policy measures in Oklahoma that promote a favorable business climate, including income tax reductions that put more money into the pockets of working families and stimulate our economy.”

A common-sense approach to financial planning is a major reason Oklahoma is not in the same sad shape as California, said Benge.

“Oklahomans expect government to live within its means, just like working families do,” he said.

Benge said lawmakers will continue to pursue those common-sense strategies as they work on this year's state budget. The Oklahoma Legislature will convene on Monday, Feb. 2.

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