The House met this week in special session, passing a bill that would cut the income tax rate by 0.25% retroactively to include 2023 tax filers and those going forward.
This would reduce the top tax rate from 4.75% to 4.50% and eliminate the tax completely for those earning the least in the state.
Gov. Kevin Stitt called this third special session of the 59th Legislature to cut the income tax rate. In his call, he said with record-breaking savings and a strong economic outlook, there’s no time like the present to deliver a pay raise to all Oklahomans.
It’s proven that the more money you leave in the taxpayer’s pocket, it still comes back to the overall economy in terms of sales tax or other investments that result in a positive effect for all Oklahomans.
The failure to reduce taxes now, when savings are reaching a record $5 billion and revenues are projected to reach $13.9 billion for the next fiscal year, raises the question of when we will ever find the will to do so.
Senate leadership, however, has said they not plan to cut taxes until they have final revenue certifications from the state Board of Equalization, which happens mid-February. That chamber met in special session but adjourned to a call of the chair before we could pass our tax legislation to them. There’s no indication they will come back into special session to take up our measure.
Even so, the Speaker of the House has introduced a number of measures for our regular legislative session that starts Feb. 5. So, there’s still hope of an income tax cut for the Oklahoma taxpayer.
I’ve heard the argument that this tax cut won’t return much money to the average taxpayer and could go to better use if left for the government to disperse. I guess it depends on your view of whether this money belongs to the taxpayer or the government. I say it belongs to the taxpayer.
There are areas outlined in our U.S. and State Constitutions that specify appropriate functions of government. We’ve met those admirably. In recent years, we’ve made historic investments in education, transportation, health care, public safety and other services for Oklahomans. With kind of surplus, and state services in good shape, it’s time we return some money to the taxpayer. It’s not easy to see people struggling with the current inflation we’re experiencing, and we should grant some relief.
We also want to stay competitive with other states that already have cut the income tax. If we don’t, we’ll lose momentum to move forward economically.
The Legislature only spent 90% of what was allocated last year, and we were still able to preserve government services. The $240 million projected cost for this tax cut is worth every penny saved.
It is truly an honor and privilege to represent you at the State Capitol. As always, please do not hesitate to reach out to me with any concerns at 405-557-7302 or neil. hays@okhouse.gov.
Rep. Neil Hays, a Republican, serves District 13 in the Oklahoma House of Representatives, which covers McIntosh, Muskogee and Wagoner County.
