Oklahoma’s tax and energy policies could be a National model, says taxpayer advocate

As Congress weighs sweeping legislation to address tax and energy policy, National Taxpayers Union President Pete Sepp says Oklahoma’s approach to energy development and tax code reform could serve as a model for the rest of the country.

Sepp spoke in an interview this week about the recently passed House legislation, referred to by some, including President Donald Trump, as the "big, beautiful bill" and the broader economic impact of tax cuts, federal spending, and energy regulation.

Tax Relief and the "Big, Beautiful Bill"

Sepp emphasized the urgency of passing legislation to extend provisions from the 2017 tax law, many of which are set to expire by the end of this year.

“Unless Congress acts, that would be roughly a $2,013 increase for every Oklahoman,” Sepp said. “This current bill that just passed the House of Representatives makes great progress toward extending those provisions.”

The legislation, according to Sepp, would make permanent the 2017 individual rate reductions, expand small business deductions, and preserve the doubled child tax credit. However, he says the bill is “not perfect,” citing concerns about spending and certain energy-related provisions.

Concerns Over Federal Spending

While the bill includes what Sepp described as $1.5 to $2 trillion in spending restraint over nine years, he said that doesn’t amount to true cuts.

“That’s just slowing the rate of growth in federal spending, not actually cutting it,” he said. “The federal government is going to spend upwards of $86 trillion over the next nine years. This would spend $84 trillion.”

Sepp urged lawmakers to take federal deficits seriously, warning that bond markets are already reacting to what he described as a “lack of fiscal discipline.”

Oklahoma’s Energy Strategy Stands Out

Sepp praised Oklahoma’s diversified energy portfolio and its tax structure, particularly the state’s policy allowing full and immediate expensing of business investments.

“Oklahoma actually did enact it, and it’s been in place since 2023,” he said. “That’s made the state increasingly competitive with places like Texas.”

According to Sepp, the Tax Foundation ranks Oklahoma fifth nationally in corporate tax policy, surpassing Texas, which does not have a personal income tax but imposes what he called a “burdensome business tax.”

Permitting Reform: A National Hurdle

Sepp also discussed the need for streamlining energy permitting processes, both for generation projects like natural gas plants and for transmission infrastructure.

He pointed to behind-the-meter technologies, where companies generate their own power, as a way to meet growing demand from industries like data centers, particularly as artificial intelligence is projected to drive a 165% increase in energy demand over the next seven years.

Obstacles From Other States

Sepp cited ongoing disputes between utilities and developers, particularly efforts by states like New York to block natural gas pipelines, as a major barrier to national energy development.

He said companies like Oklahoma-based Williams Companies have struggled for years to expand pipeline access into New England.

Federal Reform and Bipartisan Potential

The House bill includes measures to allow expedited permitting for a fee and clarifies that the Federal Energy Regulatory Commission (FERC) can create faster approval processes without new congressional legislation. While Sepp said this is “not as good” as previous bipartisan efforts, he called it “a decent start.”

He also highlighted a proposed bill, the Advancing GETs Act, which would allow utilities to share profits from cost-saving technologies, a potential incentive for grid innovation.

Oklahoma’s Broader Influence

Sepp concluded by saying Oklahoma’s policy model, emphasizing private investment over subsidies, regulatory clarity, and an “all of the above” energy strategy, offers lessons for the nation.

“Oklahoma is a leader among states,” he said. “That's a powerful one-two punch that’s going to deliver the energy you need at a low cost.