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Kozi Checks & Balances TaxTactics News

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July 21.2025

2 Minutes Read

Oklahoma's Pro-Growth Tax Reforms: A New Era for Business Expansion

Oklahoma State Capitol, highlighting dome and tax reforms.

Oklahoma Tax Reforms: A Step Towards Growth

Oklahoma has made significant advancements in its pro-growth tax policies, notably lowering the top marginal income tax rate to 4.5%, while also streamlining the tax structure by reducing six income brackets to just three. This marks a considerable shift in the state's tax environment and presents an opportunity for enhanced economic competitiveness.

A Closer Look at Recent Reforms

The recent passage of House Bill 2764 is a key milestone in Oklahoma's ongoing tax reform journey. This legislation not only reduces the top income tax rate but also introduces mechanisms for further cuts based on revenue thresholds. If certain economic benchmarks are achieved, taxpayers could see additional decreases of 0.25% in their rates, reinforcing a proactive fiscal policy that aims to stimulate growth.

Maintaining Economic Competitiveness

With this reform, Oklahoma's position improves within regional tax competitiveness rankings—from 31st to 21st—and potentially even to 20th with future adjustments. This progress indicates that lawmakers are keen on positioning Oklahoma favorably against neighboring states, particularly Texas and Missouri, both known for their business-friendly tax systems. However, caution is advised against policy decisions that might undermine this growth, such as the complete elimination of property taxes.

Future Tax Policy Considerations

The dialogue around tax reforms is far from over. Governor Kevin Stitt has expressed intentions to eventually eliminate the state income tax entirely. While this ambitious goal may seem attractive, it brings forth potential risks and consequences that require thorough analysis. As reforms continue, the state's officials must balance maintaining essential public services with fostering a competitive business climate.

The Road Ahead for Oklahoma

For Oklahoma, the recent tax reforms signify a crucial step towards fostering economic engagement and job creation. The focus must now shift towards sustainable strategies that harness these changes without sacrificing essential revenue streams needed for state infrastructure and services. Future legislative sessions will be pivotal in shaping a tax framework that supports growth while ensuring fiscal responsibility.

To stay informed about the latest updates on Oklahoma's financial landscape and how these changes may affect local businesses, join in the conversation as the state navigates its path towards a more competitive tax environment.

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07.19.2025

Exploring the EU CORE Proposal: What It Means for Businesses

Update Is the CORE Proposal the Right Move for EU Businesses?The European Commission's recent proposal to introduce the "Corporate Resource for Europe" (CORE) has sparked a significant debate regarding business taxation within the EU. This new initiative aims to levy lump-sum contributions from companies with annual net turnover exceeding €100 million, introducing a unique tiered structure for financial contributions. However, it raises questions about fairness and practicality, particularly regarding businesses that may struggle financially.The Core of the Issue: Tax Structure and Business ImpactCORE, with a contribution range from €100,000 to €750,000, appears straightforward, but it overlooks critical factors in a company’s financial health. For instance, a business with a turnover of €750 million might still incur losses in a fiscal year, yet it is still burdened with this tax obligation. This aspect of the CORE proposal could force struggling companies to divert resources away from essential operations, risking their stability and growth.Comparative Analysis: Balancing EU Revenue Needs and Business ViabilityWhen considering this proposal, it's vital to delve into comparisons with existing taxation structures in EU member states. Many countries employ profit-based taxation, which adjusts to the company’s profitability, thus reflecting a more equitable approach. The CORE, which does not account for profit but strictly turnover, could lead to unforeseen difficulties for businesses, particularly small and medium enterprises that are already navigating a complex economic landscape.Public Reaction and Future ImplicationsThe reception to the CORE proposal has been mixed among business leaders and policymakers. On the one hand, some see it as a necessary step toward a unified EU budget that can adequately fund essential projects. Conversely, others express deep concern over the potential impact on businesses, especially in an economy still recovering from disruptions. As this proposal evolves, it will be crucial to monitor its reception at the ground level and consider adjustments that could alleviate pressures on vulnerable sectors.

07.10.2025

Alabama's Pro-Growth Tax Reforms Aim to Boost Economic Growth

Update Alabama's Tax Reforms: A Bold Move Towards Economic Growth The 2025 legislative session in Alabama has become a beacon of hope for businesses and taxpayers alike, as the government rolled out transformative tax reforms aimed specifically at boosting the state's economic framework. Spearheaded by Governor Kay Ivey, these measures emphasize simplicity, neutrality, and efficiency—qualities essential for attracting business investments and facilitating growth. Mobile Workforce Relief: A Game Changer for Employers One of the standout reforms is the introduction of Act 2025-334, which provides a 30-day safe harbor for nonresident employees. This new policy allows workers to perform tasks in Alabama without being burdened by the state income tax, provided they work less than 30 days within a calendar year. This makes Alabama a more appealing destination for businesses with mobile employees, fostering a work environment that embraces flexibility. Tangible Personal Property Tax Exemption: Easing Financial Pressures Another significant change is seen in Act 2025-344, where the tangible personal property (TPP) tax exemption threshold rises from $40,000 to $100,000. This adjustment offers much-needed relief for small and medium-sized enterprises, sparing them from filing complex TPP returns and reducing administrative burdens. This more generous exemption allows businesses to redirect resources that would otherwise be consumed by tax compliance towards growth and innovation. Predicting a Brighter Future The combination of mobile workforce relief and heightened TPP exemptions positions Alabama favorably in the landscape of tax competitiveness. As the 2026 State Tax Competitiveness Index approaches, these pro-growth reforms could significantly enhance Alabama's reputation among businesses considering expansion or relocation. Concluding Thoughts Such legislative advancements highlight a commitment to improving the local business climate while acknowledging the requirements of modern workforces. As Alabama embraces these reforms, the anticipated outcomes—such as increased job creation and economic resilience—will define the state’s trajectory in the years to come.

07.08.2025

How OECD's BEPS Initiative is Shaping International Tax Compliance

Update The Importance of Addressing Base Erosion and Profit Shifting On July 7, 2025, the Tax Foundation submitted its response to the OECD’s consultation regarding Base Erosion and Profit Shifting (BEPS). This phenomenon occurs when multinational corporations relocate their profits from high-tax regions to lower-tax countries, which presents several challenges for revenue collection and fiscal stability globally. Successes of the OECD's BEPS Initiative The OECD’s coordinated efforts in the mid-2010s gave rise to a 15-point action plan aimed at simplifying international taxation while curbing tax evasion practices. The initiative successfully brought several key ideas to life and has since led to the enactment of viable policy recommendations in several countries. As evidenced by academic studies, the most crucial takeaway from the OECD’s mission is the genuine benefits of international cooperation on taxation. Potential Risks of Over-standardization Despite the apparent successes, the response highlights a critical risk: enforcing too rigid of a standard across multiple jurisdictions could stifle necessary innovation. The universality of certain policies might restrict the ability of countries to tailor their approaches, leading to unforeseen consequences. An adaptable strategy that allows room for necessary experimentation is essential to address the dynamic landscape of global taxation. Progress in Controlled Foreign Corporation (CFC) Rules One of the most impactful outcomes from the BEPS initiative has been the transformation of Controlled Foreign Corporation (CFC) rules, originally a key objective of BEPS Action 3. As many international tax systems lacked the necessary robustness, reforms in this area have marked a substantial step toward reducing profit shifting, ensuring that corporations contribute fair taxes in their operational jurisdictions. Final Thoughts on Multilateral Approaches Ultimately, ongoing engagement and discussion among nations are paramount in global tax policy development. By keeping lines of communication open and continually reassessing weighty definitions, the potential for a fairer international tax framework will grow. This is especially important as the dynamics of global markets evolve.

Oklahoma's Pro-Growth Tax Reforms: A New Era for Business Expansion

Oklahoma Tax Reforms: A Step Towards Growth

A Closer Look at Recent Reforms

Maintaining Economic Competitiveness

Future Tax Policy Considerations

The Road Ahead for Oklahoma

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