88.0
Wednesday, May 16, 2012
Oklahoma must solve pay issues
by   |  June 15, 2005  |  

Oklahoma has a problem. As a whole, Oklahomans are paid less compared to most states, including several nearby states.

According to the Oklahoma Council of Public Affairs, Oklahomans rank 45th in average overall pay (see story, page 8).

This causes a brain drain as graduating Oklahomans flee the state in search of better pay from Kansas, Texas or Missouri.

As long as America is a capitalist country, no one can blame students for trying to get better pay.

Gov. Brad Henry recently signed a bill intended to give teachers in K-12 education a pay raise. Henry reasoned "Oklahoma teacher salaries are the lowest in the region" in a news release. The Henry family has first-hand experience with that issue, as first lady Kim Henry is a former teacher.

But signing a bill for teachers does not solve the statewide problem of low pay.

There are a few options to solve the problem of low pay.

The first option is to lower income taxes. However, 42 percent of Oklahoma revenues come from income tax receipts. Lowering taxes would directly lower Oklahoma revenues.

If Oklahoma revenues drop, it will soon become difficult to pay government employees (teachers included) wages competitive with surrounding states.

The second option is to do nothing. Oklahoma ranks low on pay scales because of a low cost of living.

While that seems to be a reasonable trade-off, most people will still look at the higher salary rather than the low cost of living.

The best option is to lower the tax burden on Oklahoma businesses. According to an Ernst and Young study, Oklahoma ranks eighth in state and local business taxes per dollar of capital income.

If Oklahoma lowers the burden on businesses, businesses can pay more to employees. If that happens, perhaps employees will flock to Oklahoma rather than away from it.
hello there & you too

Sign in to comment