Oklahoma Governor Mary Fallin recently laid out her plan to cut Oklahoma’s personal income tax rate from 5.25 to 5 percent for those making at least $8,700 per year. This proposal is a TRUE cut that would allow the vast majority of Oklahomans to take home more of their hard-earned pay. With the support of House Speaker T.W. Shannon, this plan (House Bill 2032) passed the Oklahoma House, and now it’s time to push this reform through the Senate.
Although some state lawmakers believe that Oklahoma’s income tax is already low enough, the Governor is wisely seeking to continue the Sooner State’s recent pro-growth tax reform. With nearby Louisiana seeking to completely eliminate income taxes, it is critical for Oklahoma to make more progress toward a lower rate, since we know that individuals and businesses vote with their feet and will move to states that offer the best opportunities. The Fallin-Shannon cut would give citizens more opportunities and keep small businesses competitive. As House Speaker T.W. Shannon has stated, “It is important that Oklahomans hold on to more of their hard-earned tax money. People with more money in their pockets either save, invest, or spend those dollars. This is good for the economy and previous income tax cuts have sparked record revenues and prosperous growth here in Oklahoma.”
Governor Fallin and Speaker Shannon’s straightforward income tax cut would provide much-needed relief to families struggling with the rising costs of health care, education, and other necessities. The Oklahoma Senate would be wise to continue the previous tax-cutting efforts that have recently benefitted the Sooner State. Oklahomans can click HERE to contact their senators and urge support for HB 2032.
Stay tuned to NTU.org for updates on tax reform in Oklahoma.