OKLAHOMA CITY – State Rep. Tom Newell, R-Seminole, released the following statement today in response to misinformation being distributed to lawmakers and Oklahomans that the only people who benefit from low, competitive gross production taxes are ‘Fat Cats’ on ‘Wall Street’:
“It’s alarming that a leftist group is misinforming Oklahomans by claiming that only ‘Fat Cats on Wall Street’ benefit from the current tax rates on gross production. In their effort to increase taxes they are using the tactics of the politics of envy, the favored tactic of President Obama and liberal billionaires in Oklahoma. Reality does not fit their rhetoric. I doubt anyone would label teachers, police officers, fire fighters, and state employees as ‘Wall Street Fat Cats.’
“According to the Oklahoma Public Employees Retirement System and the Oklahoma Teachers Retirement System, these systems have more than $1.5 billion invested in oil and gas related activities. Oklahoma’s other state pension systems have funds invested in oil and gas related activities as well.
“These funds – which include the millions in annual retirement contributions by government employees – are crucial to keeping the promise to government employees that funds will be available to pay for government workers’ hard earned retirement. Government pensions use gains and dividends from investments to provide cash flow for the payment of monthly retirement benefits.According to Reuters, corporate stocks comprise about a third of public pension holdings nationwide.
“If Oklahoma increases its gross production tax by 600 percent, those funds are extracted from the economy and investors, reducing gains and value to teachers, police officers, law enforcement officers like highway patrol officers, firefighters, corrections officers, social workers and hardworking state employees who depend on these investments for their pension systems.
“It is also important to note that approximately 1.7 million hard working Oklahomans received $2.5 billion in royalty payments in 2012. These royalty owners pay gross production taxes as well.
“We can have a debate about what is the right tax policy, but demonizing government workers, retirees, and hard-working Oklahomans as ‘Fat Cats’ is offensive and should stop. Making policy decisions based on the myth that only the ‘rich’ participate in ‘Wall Street’ and benefit from low taxes is naïve and not conducive to moving Oklahoma forward.”