Economist likes proposal to eliminate Oklahoma's personal income tax

Arthur Laffer, whose Laffer Curve suggests low tax rates boost economic growth, said the proposal would put Oklahoma's competitive economy into a top-tier economic policy environment.

“It'll lead to a lot faster growth for Oklahoma. You've been a very good performing state, ... but you still have a way to go to be really superb,” Laffer said after speaking to a joint meeting of the downtown Oklahoma City Lions, Kiwanis and Rotary clubs. “Your income tax is your primary deterrent to further economic growth.”

Gov. Mary Fallin has said she supports the eventual elimination of the personal income tax, and Republican legislative leaders are looking at proposed legislation next year.

Laffer, who played a key role in writing Proposition 13, the California property tax cap initiative, said Oklahoma officials would see more interest by businesses if the state eventually eliminated personal income tax. Nine states, including Texas, have no personal income tax; Missouri and Kansas are considering ending theirs.