Oklahoma

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Income Tax

Everything You Need to Know About Oklahoma's Income Tax

Background

[bill id="HB 3038" state=ok session="2012" align=right]

The individual income tax is the largest single source of tax revenue for Oklahoma’s state government.

The tax brings in about $3 of every $8 in state revenue, according to Robert Dauffenbach, and economics professor and director of the Center for Economic and Managerial Research at the University of Oklahoma.

Nine states don’t levy taxes on personal incomes, including Texas, which is often cited as a model for economic growth and tax policy.

Several top state lawmakers, including Gov. Mary Fallin, Lt. Gov. Todd Lamb and state Rep. David Dank, R-Oklahoma City, have backed the elimination of the personal income tax.

Lawmakers in two other neighboring states, Kansas and Missouri, are also trying to eliminate the tax, which proponents say would help grow the economy by attracting and retaining jobs.

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When the 2014 legislative session starts Feb. 3, state lawmakers will face more than 2,000 bills and resolutions, and are expected to have $170 million less to spend than last year. They will also be confronted by agency heads, most of which will argue, publicly, for more money. Many of the bills under consideration this [...]

Gov. Fallin to WSJ: Income Tax Cut Coming Next Year

Gov. Mary Fallin

Despite Republican control of the governor’s office and the state legislature, pledges to cut Oklahoma’s individual income tax failed last year because GOP members, the Wall Street Journal‘s Stephen Moore writes, “wanted to spend more on district pet projects rather than cut tax rates.” Next year will be different, Gov. Mary Fallin tells the paper. [...]

Join Us Tonight: Pints and Tax Policy Talk

Caption

The income tax debate dominated much of the 2012 legislative session. But a plan to cut the income tax failed in the end. So what really happened? How might everyday Oklahomans like you be affected by an income tax cut? What’s a tax credit, who gets ‘em, and how do they affect what you pay [...]

What Kansas and Maryland Could Teach Oklahoma About Taxes and Services

Studying the Money

States are finally starting to rise from the economic downturn, and lawmakers are taking a long, hard look at themselves. They’re faced with a difficult question, writes the New York Times‘ Michael Cooper: “Should they restore some of the services and jobs they were forced to cut after the recession — or cut taxes in [...]

Fallin: Income Tax Cut ‘Doomed’ by Lobbying

Gov. Mary Fallin

Intense special interest lobbying to save hundreds of millions in tax credits, deductions and exemptions derailed efforts to cut Oklahoma’s personal income tax, Gov. Mary Fallin tells the Associated Press. Reducing and ultimately eliminating the income tax was a cornerstone of Fallin and Republican lawmakers’ goals for the 2012 legislative session. By April, Fallin had [...]

Three Reasons Oklahoma’s Income Tax Cut Plan Failed

Income Tax

After months of debate, discussion and rancor from lawmakers, business leaders and think-tank activists, the state legislative session will close today without an income tax cut. Cutting the personal income tax was a top priority for Gov. Mary Fallin and Republican legislators. More than a half-dozen income tax-cutting measures were filed. Some contained immediate reductions; [...]

How Lawmakers Plan to Pay for the Income Tax Cut

Republican lawmakers and Gov. Mary Fallin have agreed on a plan to cut Oklahoma’s individual income tax rate. The agreement would cut the top personal rate to 4.8 percent from 5.25 percent next year, includes an additional tax cut tied to a revenue growth trigger in 2015, and simplifies the tax code by reducing the [...]

Steep Income Tax Reduction Won’t Happen This Year, Gov. Fallin Says

Gov. Mary Fallin

Gov. Mary Fallin’s proposed steep reduction of the state’s top individual income tax rate won’t happen this year. This is the first time Fallin has publicly acknowledged what state lawmakers have been signaling for weeks, the Associated Press reports. “There doesn’t seem to be the appetite in the state Legislature to make a huge, significant [...]

Rural Doctor Training Program One of $853 Million Ways to Pay for an Income Tax Cut

dr-kohl

Cutting Oklahoma’s income tax means cutting into the single largest source of state tax revenue. Many of these income tax-reduction plans count on the expectation that other tax revenues — like the sales tax — will increase as Oklahoma’s economy prospers under a reduced income tax. But spending cuts are a big piece of the [...]

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