{"id":6702,"date":"2012-05-18T09:39:34","date_gmt":"2012-05-18T14:39:34","guid":{"rendered":"http:\/\/stateimpact.npr.org\/oklahoma\/?p=6702"},"modified":"2012-12-20T10:03:03","modified_gmt":"2012-12-20T16:03:03","slug":"how-lawmakers-plan-to-pay-for-the-income-tax-cut","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/oklahoma\/2012\/05\/18\/how-lawmakers-plan-to-pay-for-the-income-tax-cut\/","title":{"rendered":"How Lawmakers Plan to Pay for the Income Tax Cut"},"content":{"rendered":"
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Alex Wong \/ Getty Images<\/p>\n

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Republican lawmakers and Gov. Mary Fallin have agreed on a plan to cut Oklahoma\u2019s individual income tax rate.<\/p>

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 number of tax brackets to three from seven.<\/p>

House and Senate Democrats decried the effort as premature, but legislators will likely approve the plan, House Speaker Kris Steele, R-Shawnee, and Senate President Pro Tem Brian Bingman, R-Sapulpa, told<\/a> The Oklahoman<\/em>.<\/p>

Here\u2019s how they plan to pay for it:<\/p>

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Lost revenue is partially offset by eliminating 33 tax credits, certain deductions and eliminating the personal exemption for single filers making more than $35,000 and joint filers making more than $70,000. No major economic tax credits are being eliminated; retirement and veteran tax exemptions for individual taxpayers are safe.<\/em><\/p>

The plan leaves alone credits available to low-income taxpayers, such as earned income credits, child and child care credits and sales tax relief credits, reports the paper\u2019s Michael McNutt.<\/em><\/p><\/blockquote>

The tax cut agreement will save taxpayers about $218 million in FY 2014. If the 5 percent growth trigger \u2014 which is tied to personal income and sales, corporate and motor vehicle tax collections \u2014 is reached in FY 2015, taxes would be cut by an additional $121.4 million, The Oklahoman<\/em> reports.<\/p>

The personal income tax is the largest single source of tax revenue for the state, and provides about one-third of funding appropriated by lawmakers.<\/p>\n

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