June 21, 2015

Oklahoma Watch Radio: Tax Diversion

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Oklahoma Watch Radio IconOklahoma employees of Whirlpool, Michelin, Hitachi and 14 other firms are contributing part of their paychecks to help pay for $89 million in plant expansions and equipment purchases — and they may not even know it, an Oklahoma Watch investigation found.

The “Oklahoma Watch Report” examines the issue:

The Pooled Finance Act is a perfectly legal program with the goal of keeping and growing businesses and jobs in Oklahoma. The program lets Oklahoma companies engage in a credit swap that guarantees they will be paid back for spending money to improve facilities or buy equipment.

The companies are paid back from the state income-tax withholding amounts from their employees – money diverted away from state government at a time when Oklahoma is grappling with a budget crunch. A new law that takes effect next year will mandate closer scrutiny of such business incentives.

Click here for the complete text report on the issue. Also, read other Oklahoma Watch Reports.