OKLAHOMA CITY– Oklahoma State Auditor, Gary Jones is asking lawmakers to repeal the law reducing Oklahoma’s state income tax from 5 percent to 4.8 percent.
Jones says the legislature needs to focus on being fiscally responsible rather than being politically correct.
“This law was written on the premise that taxes would be cut based on increasing revenues,” said Jones. “Nothing could be further from the truth. Right now we have a defective statute that reduces taxes based on comparing estimates from different points in time. It does not reflect what is actually occurring in the state’s revenue streams,” said Jones.
Some Republican legislative leaders are looking at this income tax cut which could be triggered as early as next year.
The cut would happen if 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.
Jones believes repealing the law makes the most sense because it is based on a flawed trigger and any future tax cuts should be based on fiscally responsible methods, not revenue estimates that have been difficult to predict.