Legislation that would trim Oklahoma's personal income tax rate when state revenue increases has been approved by the state House.
House members voted 54-40 for the Senate-passed measure that is one of Republican Gov. Mary Fallin's top goals for the 2014 Legislature. It now goes to Fallin to be signed into law.
“Our state has seen economic growth and record revenues due to our competitive income tax policies and pro-business environment,” the bill's author state Rep. Leslie Osborn (R-Mustang) said in a statement. “This measure allows Oklahomans greater control over their hard-earned money. They will either spend or invest those dollars and further strengthen our economy.”
The measure will reduce the personal income tax rate from 5.25 percent to 5 percent in 2016 if state revenue projections are greater than projections in December 2014.
If growth continues, then a second reduction will take place lowering the rate from 5 percent to 4.85 percent no sooner than two years after the 5 percent rate is enacted, providing that there is sufficient revenue to cover the cost of the reduction.
But the Oklahoma Policy Institute, a left-leaning think tank, called the tax cuts "irresponsible."
They approved tax cuts that will do little to nothing for most families while taking over $250 million out of schools and other important foundations of our economy. They voted for automatic tax cuts for future years even though the Tax Commission can’t say how much it will cost and we have no projections of what our budget needs will be.
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