OKLAHOMA CITY (April 10, 2025) – A newly updated study from the State Chamber Research Foundation (SCRF) and the Tax Foundation outlines a path for Oklahoma to enhance its tax competitiveness while supporting long-term economic growth.
Originally released in 2021, the study compares tax codes across the U.S. and offers updated recommendations focused on reforming corporate and individual income taxes, sales taxes, and property taxes. The analysis emphasizes structural changes and strategic rate reductions aimed at attracting investment and improving economic stability.
“The new data from the Tax Foundation reinforces what we’ve been saying all year,” said Amanda Hall, Policy & Research Director at SCRF. “Oklahoma has made real progress—eliminated the outdated franchise tax, made full expensing permanent, and removed the marriage penalty in the income tax code—but other states are moving fast, too. We can’t afford to stall.”
One example is Louisiana, which recently moved from a graduated income tax to a flat rate of 3%, down from a top bracket of 4.25%. The report suggests this kind of reform could help Oklahoma stay competitive.
“This study makes a strong case for adopting a flat individual income tax,” Hall said. “States that made that shift are seeing stronger economic growth. Even if it results in short-term revenue losses, a more competitive system pays off over time.”
Key Recommendations from the Study:
- Individual Income Tax: Consider phasing in a single-rate income tax or using revenue triggers to lower rates. These changes would help Oklahoma stand out among regional competitors, including zero-income-tax states like Texas.
- Corporate Income Tax: Repeal the state’s “throwback rule,” which penalizes in-state businesses on out-of-state sales.
“We’re focused on building a competitive tax code, not just chasing a low top rate,” said Chad Warmington, President and CEO of The State Chamber. “This study gives policymakers a blueprint for reforms that deliver real impact—not just on paper, but in the real economy.”
The report provides a clear strategy for improving Oklahoma’s tax structure and strengthening its economic position amid growing competition from other states.
Media RSVP Contact– Brent Skarky- 405-818-1939 brent@okstatechamber.com
