Gov. Mary Fallin’s Income Tax Goal: ‘Around 3 Percent’

Gov. Mary Fallin on Wednesday reiterated her support for reducing Oklahoma’s personal income tax.

Fallin and several lawmakers spoke to about 300 people at the State Chamber’s Public Affairs Forum and Governor’s Economic Roundtable.

The Oklahoman’s Don Mecoy said “business-friendly” was the buzzword du jour:

Fallin said further reductions in the state income tax would help the state compete with adjacent states that have proposed cuts in their income tax or that, like Texas, levy no personal income tax.

Fallin said her goal was to reduce the individual income tax — the state’s largest tax revenue source — to “around 3 percent” over several years, The Oklahoman reported. Oklahoma’s top personal income tax rate for 2012 is 5.25 percent.

Fallin emphasized a “gradual” income tax reduction. House Speaker Kris Steele, R-Shawnee, also voiced support for income tax reduction, but some lawmakers urged caution.

From the Tulsa World’s Barbara Hoberock:

House Democratic Leader Scott Inman of Oklahoma City said if the state income tax is eliminated, sacrifices will have to be made in programs and services.

“We have got to make sure that whatever we do, what reforms we have, we don’t do it on the back of our most vulnerable citizens, those who depend on those services,” said Senate Minority Leader Sean Burrage of Claremore.