OCPA: Jobs Leaving Oklahoma For Lower-Tax Climate
Jobs leaving Oklahoma at the speed of Hertz for lower-tax climate
BY DAVE BOND · WED, MAY 29, 2013
A few weeks ago, rental car giant Hertz announced it’s moving its headquarters from New Jersey to Lee County, Fla., which features the city of Fort Myers and backs up to Naples. While the $50 million Hertz will spend to build in Florida and the 700 jobs it will bring are significant, Oklahomans will be most sensitive to the 120 jobs the city of Tulsa is expected to lose in the move.
Those 120 jobs are from Tulsa-based Dollar Thrifty Automotive Group, which Hertz acquired last year. Hertz executives indicated their New Jersey employees weren’t interested in relocating to Oklahoma. According to a Tulsa World story, most of the jobs headed from Oklahoma to Florida are executive-level positions. As reported by a south Florida newspaper, the average salary for all 700 jobs going to Florida is $102,000.
Some will say Florida’s beautiful gulf coast beaches are explanation enough for Tulsa’s loss of financial and human capital. But then why not move Hertz’s HQ to Mobile, Ala., or Biloxi, Miss.? Cost-of-living in either, or in Tulsa, is lower than in Fort Myers or Naples.
In a press conference with Hertz’s CEO, Florida Gov. Rick Scott pointed out that a big reason his state is a “top destination” for business is its lack of a personal income tax. Florida is one of only nine states with this distinction. Oklahoma has a top income tax rate of 5.25 percent, ranking it 20th nationally. Alabama’s top rate is 4.25 percent and Mississippi’s 5.00 percent – 12th and 16th, respectively.