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Lawmaker Wants to Replace Income Tax with a Service Tax
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OKLAHOMA CITY (AP) - A proposal to replace the corporate and individual income tax with a tax on various services is being considered by a legislative committee.
Members of the House Appropriations and Budget Subcommittee on Revenue and Taxation discussed the plan Wednesday during an interim study.
Republican Rep. Mark McCullough of Sapulpa says a service tax on transactions like oil changes, haircuts, legal services and medical care would be a more reliable revenue stream than corporate or individual income taxes. A service-based tax would also eliminate the need for various tax incentives and credits, which have proven difficult for the Legislature to eliminate.
McCullough stressed that his plan would be revenue neutral because any increase in service tax would be offset by a reduction in taxes on income.

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