OKLAHOMA CITY (KFOR) – Two economics professors from the University of Oklahoma back some proposals for inflation relief, but also said it’s more of a job for the federal government.
After looking through the 15 bills introduced by the House this week, Dr. Benjamin Keen said short term cuts or reductions are preferred over the permanent cuts.
He said that because this bout of inflation is brought on by higher gas prices and Federal Reserve interest rate policy decisions, it’s best for the state to not give up it’s long term revenue streams.
“We may not be having the inflation three or four years down the line, so temporary would benefit them immediately without tying hands long-term,” said Keen, referring to what is best for the consumer.
Both Keen and Dr. Greg Burge, the Economics Chair at OU, said the federal government is best equipped to fight rising costs.
“On a federal level that’s where the cure for inflation is. On a state level we can treat the symptoms,” said Keen.
In an email, Burge said he doesn’t support a temporary or permanent tax cut in response to the current situation. He said the state’s tax policy shouldn’t be based on macro economic conditions.
This week the House and the Senate are meeting because Governor Kevin Stitt called for a 3rd Special Session. He vetoed a plan for $75 checks to be sent to Oklahomans, and instead asked for a grocery tax cut.
Professor Keen said a grocery store sales tax cut would benefit lower class consumers.
“Many people live pay check to pay check. Those people would really benefit from having that money in their hands,” said the economics professor.
On Monday, House Speaker Charles McCall said that every approach will be considered this week, but Senator Greg Treat opposed that idea.
“We committed to working on tax reform, but we’re not just going to throw every idea against the wall and hope something sticks,” said Senator Treat, the Senate President Pro Tempore.
Senators did not meet on Tuesday. They will be back at the Capitol on Wednesday, but there is no guarantee that the proposals by the House will be heard in the Senate.
The House will vote on the inflation relief bills Wednesday.