Republican leaders in Oklahoma rethinking income tax cut
OKLAHOMA CITY – Facing a budget hole of nearly $870 million and declining revenue collections, Republican legislative leaders in Oklahoma are reconsidering whether to keep in place an income tax cut that could be triggered as early as next year.
Currently, the state’s individual income tax rate would drop from 5 percent to 4.85 percent once revenue collections increase by about $100 million annually.
The Oklahoma Tax Commission predicts that reduction in the income tax rate would cost the state about $97.8 million in 2018.
One bill already introduced in the state Senate by Republican Sen. Ron Sharp would require that state revenue collections increase by closer to $600 million before the tax cut would be triggered.