“With ad valorem taxes, the difference among states is 2 or 3 or 4 percent,” Kaiser said. “The other factors can vary by 50 or 100 percent.”
Compared with those other factors, Kaiser said the tax rate is incidental.
“It’s a rounding error,” he said.
Kaiser said a lower gross production tax could hold down state tax revenue below the level that would trigger broader income tax reductions.
“The net effect of this tax reduction is a subsidy by the taxpayers of Oklahoma and the education system to predominately out-of-state shareholders of Oklahoma companies,” he said.