OKLAHOMA CITY — House Republicans were on their way to a quiet end to a tumultuous legislative week Thursday until a rookie lawmaker walked straight into a left hook.
The Democratic minority was going through its daily ritual of moving to suspend the rules to bring up bills the GOP majority has no intention of hearing when Rep. Ryan Martinez, R-Edmond, decided to challenge Rep. Cory Williams, D-Stillwater, to a verbal duel over Senate Bill 1068, a measure that would repeal a capital gains tax exemption on state-based assets.
It didn’t go well.
Williams, one of the most skillful and acerbic orators in the House, soon had the gallery roaring — which was exactly what the Republicans did not want as the Legislature adjourned for the week without taking action on further education funding.
“Thanks for the questions,” Williams said finally. “We can do this all day if you like.”
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Appropriations and Budget Chairman Kevin Wallace, R-Wellston, tried to rescue his side, but the damage was done. The educators who have filled the House galleries the past two weeks got one more reason to cheer before they left for the week and maybe, for the most part, for awhile.
SB 1058, which originally was a Republican bill, has become a rallying point for demonstrating educators and their supporters. It could generate as much as $100 million in additional revenue by repealing a state capital gains tax exemption, but at the expense of some high earners, business interests and farming and ranching enterprises.
The House GOP leadership maintains it won’t hear the bill, no matter what.
Democrats have been trying to force a floor vote on the measure, which could generate as much as $100 million a year or more in revenue. Failing that, the minority has been using SB 1068 to goad the majority and rev up the educators in the gallery and walking the Capitol halls.
Thursday’s attempt would have ended with a routine vote against the motion to suspend, but Martinez asked if he could question Williams on the bill.
He repeated the GOP talking point that the Legislature should not repeal the exemption because it was adopted by a vote of the people. This happened in 2004, in State Question 713, an omnibus tax package whose chief feature was an increase in the state cigarette tax.
“So to be clear, we’d rather protect the power structure in this building, than give the people a voice in how we pass taxes and revenue-raising measures,” Martinez said.
Williams said the only thing being protected were Republicans who don’t want to have to vote on the capital gains tax bill.
“So I guess it’s kind of like that,” he said. “You get to hide behind policy and procedure ... even though we can bring bills straight to the floor. So I guess it’s kind of like that. Thanks for the question.”
Wallace argued that the bill would not help the budget because the Oklahoma Tax Commission can’t certify a fiscal impact if the exemption is left in place for agriculture, which is something Williams said Democrats would agree to do to get the bill to the floor.
“I want to be clear,” Williams said. “I don’t want to exempt ag ... but what I’m hearing from all the teachers and educators coming into my office is that you’re hiding behind ag. We can’t hear the bill because it would cripple ag, which is really a false flag but I’ll go there with you and I’ll offer you the exemption so we can get that bill to the floor.
“The tax commission seems to be reluctant to certify, even though they know from the 1,800 filers who claimed it last year which ones claimed it for ag. I happen to think it’s more politics than anything because (OTC Director Tony Mastin) would like to keep his job and you guys are running the train.”
Republicans are reluctant to push too hard for more tax increases in part because they fear it will help fuel an initiative petition led by former U.S. Sen. Tom Coburn to repeal the hard-won tax package signed into law last week.
