Tuesday, October 25, 2011




Our 12 noon luncheon for Wednesday, October 26th will be held at
Italiano’s restaurant, 4801 North Lincoln in OKC. Over the years we
have had many candidates for the legislature come to an OCPAC meeting
and say they were going to reduce the size of state government,
eliminate waste, duplication and inefficiencies. We used to have a
member that would ask for some concrete example of how they would
accomplish such an achievement? Usually, there would be little
substance within their answers. Our speaker this week will be State
Representative Jason Murphy (R-Guthrie). Representative Murphey has
been one of the leaders in the legislature to bring about government
modernization as well as greater transparency to our government
functions and processes. We have never considered a bill regarding
government modernization for the conservative index, as we have tried
to be careful that any savings were real and not just pie in the sky.
Jason will explain the effects of his efforts over the past 3 years or
so. In the end, we will be looking for a reduction in the cost of
government, a reduction in the number of state employees and where
feasible, consolidation of government agencies. We want to see if
there is a real benefit for the taxpayers of the State of Oklahoma.
Don’t miss this important meeting and bring your best questions. If
this computer geek (a geek is a nerd with a social life) tries to pull
any wool over our eyes, we want to catch it.


* TUESDAY EVENING - KONAWA AREA - The Konawa Tea Party will
gather for their monthly meeting, Tuesday evening, October 25th, 7:00
p.m at the American Legion Hut, 101 West 3rd street in Konawa (it is
on highway 39, just East of the Assembly of God Church. Pastor Dan
Fisher of Trinity Baptist Church (Yukon) and I will both be speaking.
Without Paul Blair around, Dan started to pick on me as soon as he
found out we would both be speaking. Having seen this guy in action
before, I know to stay out in front of him. Therefore, I have
suggested it would not matter who would speak first. If it was me, I
would tone it down so people would not get up and leave 5 minutes into
his talk because of boredom. However, should Dan go first, I have
suggested I could wake the audience up once I got started. Actually,
beside the dog and pony show between Dan and I, there will be some
really important content presented. If you live anywhere in the area,
please attend so you can meet some the other conservatives in the
effort to make Oklahoma a better place to live.

* FRIDAY EVENING - OKC AREA - Folks are invited to an evening
with Phyllis Schlafly, Founder and President of Eagle Forum, one of
America’s top conservative organizations since 1972. The location will
be the Gaylord University Center (2501 E. Memorial Rd, Edmond) on the
campus of Oklahoma Christian University. The dinner and meeting will
start at 7:00 p.m., but there is a Special Student Only Reception
which begins at 5 and a Private Reception for Sponsors at 6:00 p.m.
Now, here is the deal, they need a head count to order the food, by
today, Tuesday, October 25th. Therefore, everyone intending to go to
this event will need to contact Bunny Chambers today at (405) 721-2891
or by e-mail okeagle@eagleforum.org. High School and College students
get in for $10, but I am not sure what the price will be for adults
since we are past the early bird discount time. Please contact Bunny
for that information, but do so today.

* SATURDAY EVENING - OKC - I have mentioned in the last couple of
e-mails about the John Birch Society’s first recognition banquet and
Patriot Celebration which will be this Saturday evening, 6:00 p.m. at
the Character Center, 524 West Main in Downtown OKC (This is just a
couple of blocks West of the new Devon Tower). I contacted Bob Donohoo
yesterday morning as last Friday was the reservation deadline.
However, he has ordered 3 or 4 extra dinners for anyone who
procrastinated but still wants to attend. Therefore, if you haven’t
made your reservations as yet, you might give Bob a call at (405)
436-5412 to see if there are any openings still available. The cost is
$15 per person. This will be a fun evening and a great time for


A few weeks back, Governor Fallin stated an intention to totally
eliminate our state income tax. Over the past several weeks, State
Representative David Dank, Chairman of the State Task Force for the
study of State Tax Credits and Economic Incentives has been trying to
lift the veil of darkness surrounding a myriad of tax credits and
other incentive plans in the state which mostly amount to corporate
welfare. Yesterday, in the news, State Treasurer Ken Miller stated
that with a change in the component of state government and a move to
more conservatism, we should start to see more significant tax reforms
in the future. I believe that means tax reductions.

Please understand, there is a difference between a tax deduction or
tax exemption and a tax credit. Tax deductions and exemptions are what
government decides not take from a taxpayer or a business entity. On
the other hand, a tax credit, a government grant or government subsidy
are always a government expenditure.

Tax credits were designed to work as an incentive for a person or
business to spend a certain amount of money, then when tax time comes
each year on or before April 15th, the government will send a check
for a certain amount of money, or reduce a tax obligation if any
exists, back to the person or entity. Tax credit schemes were designed
to be rebate (kickback) programs, much like when we buy cell phone for
a hundred dollars, then send in a rebate form and the phone company
sends us a check for $50 to reduce what we paid for the phone.

A transferable tax credit has a little different twist. As with the
Great Plains Airlines debacle, the investors in the start up airline
company didn’t first spend millions of dollars then apply to some
“economic development” program sponsored by the State of Oklahoma for
$27 million in tax credits. Once it was determined that they would be
eligible for the tax credits, they simply sold those tax credits (I
believe most of them were purchased by Bank of Oklahoma) for perhaps
90 cents on the dollar. That way, the new start up airline had “up
front” money to start the business. Then when tax time occurred, BOK
turned in the tax credits which had been transferred to them by Great
Plains Airlines for the $27 million and in turn made a profit of 10%
in less than a year. Of course it was a very risky investment which
failed and as such “state” taxpayers lost $27 million dollars.

In an Oklahoman article on October 13th, Representative Dank is quoted
as saying: “We have reviewed enough of these tax credits so far to
know that the controls and safeguards in place are often a joke.” “In
many cases, they are almost nonexistent.”

In an additional article, it was reported that the state issued $275
million in tax credits over the past 3 years under just two incentive
programs. The article went on to say the programs created 1428 jobs
from 2007 through 2009, which means the state spent $192,000 for each
job created.

I would suggest that most of those jobs, if they continue to exist,
will not produce enough tax dollars to the state to repay the $192,000
in fifty to a hundred years. What a deal!

Ultimately, we are probably going to see many of these programs done
away with and none too soon. These programs do not allow for free
market economics, but rather central planning, crony capitalism and
all sorts of corruption for the well connected.

What Oklahoma’s goal should be is to have such an efficient
government, relegated only to the proper functions of government, so
that we can eliminate all corporate, franchise, capital gains and
personal income taxes. That in itself would create the best
environment in America for businesses to locate here. Doing away with
the costs of all of these economic development tax credit schemes
would go a long way toward reducing spending to such a degree that we
could start lowering many of these taxes I just mentioned.


We are currently at 225 dues paying members which is 8 more than the
217 record we set in 2009, the most recent non-election year. I have
secured $500 to be used to match another 10 dues paying members
through the end of October. If you simply have not joined OCPAC so far
this year, now is the time to do so. Those dues are the money we
invest in candidates from all over the state to change the face of
Oklahoma. No one affiliated with OCPAC receives a salary or commission
for the work we do and our expenses are at a bare minimum. Therefore,
almost every dollar of your dues will go to elect conservatives or try
to hold them accountable once they are in office. Please consider
joining today. Instructions on how to join are below.

I look forward to seeing everyone this Wednesday.

Charlie Meadows

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