Fallin Plan on Income Tax Picking Up Steam
Support grows for Oklahoma governor’s plan to cut state income tax
By Michael McNutt
Gov. Mary Fallin’s simple proposal to reduce Oklahoma’s top personal income tax is gaining traction and appears to have the best chance of passage compared with a bill that instead calls for a deeper cut but is dependent on reducing several business tax credits and personal deductions.
The State Chamber, which has considerable clout in the state Capitol, is supporting the governor’s plan, which is contained in House Bill 2032, authored by House Speaker T.W. Shannon, R-Lawton.
The bill also has the backing of the Oklahoma Council of Public Affairs, a conservative think tank with close ties to many Republicans in the GOP-controlled Senate and House of Representatives.
HB 2032 would reduce the state’s highest personal income tax rate to 5 percent from 5.25 percent. Senate Bill 585 calls for lowering the rate to 4.75 percent while eliminating or amending numerous income tax credits, deductions and exemptions, as well as limiting some itemized deductions.