The Edmond Sun

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February 22, 2006

Study finds TABOR would limit growth

MARK SCHLACHTENHAUFEN

TABOR, the Taxpayer Bill of Rights, would hamper state tax revenue growth, a new study released by a University of Central Oklahoma think tank finds.

The study, released by the UCO Policy Institute, reports that government and tax revenue on both the state and local levels in Oklahoma grew faster than the national average from 1992-2002.

The study concludes that had TABOR been in place during that period, those revenues would have grown at one of the slowest rates in the nation.

Central to the TABOR debate is the question, “How fast should government grow?”

Generally speaking, conservatives favor limiting the size and scope of government, while liberals view the government as a means to provide more services to its citizens, and, thus, it should grow accordingly.

The report does not judge whether Oklahoma government is too large or too small, said Mickey Hepner, UCO Policy Institute director.

Hepner said the think tank’s objective is not to take sides on issues but to compile useful information and disseminate it for public use by groups such as the Oklahoma Council of Public Affairs.

Essentially, TABOR would cap annual government spending growth at the rate of population growth plus inflation, said Brandon Dutcher, OCPA vice president for policy.

Dutcher said he had no qualms with the report, which has bits and pieces both sides in the debate could use in their opinion-shaping arsenals.

“It’s an interesting, valuable report,” Dutcher said.

What is getting lost in the TABOR debate is the basic point that it’s putting more decision-making power in the hands of taxpayers, Dutcher said.

Reducing tax revenue going to bureaucrats and increasing the share retained by entrepreneurs and investors, could spur economic growth and make a state more attractive to outside investors, Dutcher wrote on his OCPA blog.

TABOR would return excess revenue received over taxation to taxpayers, revise the state “Rainy Day Fund” and create a “Budget Stabilization Fund” to help reduce budget cuts to state agencies during economic slowdowns.

The UCO Policy Institute is a think tank created to enhance policy debate in Oklahoma and is funded by UCO.

(Education reporter Mark Schlachtenhaufen may be reached via e-mail at ms@edmondsun.com.)

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