The difficult part for lawmakers is to find the money to offset the lost revenue that a rollback in the severance tax would mean to the state budget. Lawmakers and agency directors will have to find the means to approve the rollback. Layoffs are not the answer because that just shifts the layoffs from the oil patch to the state capitol. They will have to look at hiring freezes and other programs that will have the least effect on the state's citizens. The Oklahoma economy is still growing but at a much slower pace than prior years.
Lawmakers have to address the problem of collapsing oil prices.
We urge lawmakers to act swiftly in rolling back the oil severance tax. The oil producers need the help and this country needs to work with domestic oil producers at a time when worldwide oil prices have collapsed. Mideast oil producing countries have an advantage because their production cost are much lower than ours. They have many free flowing oil fields and they don't face any oil severance taxes. It is time for lawmakers to step up to the plate and do the right thing and roll back the oil severance tax.