Fallin, Steele, Bingman Back Income Tax Cut
Governor-elect Mary Fallin, House Speaker-elect Kris Steele, and Senate President Pro Tempore-elect Brian Bingman today announced their continued support for cutting Oklahoma’s income tax.
“Letting Oklahoma families and small businesses keep more of their hard-earned money is the right thing to do and a good way to get our economy moving in the right direction,” Fallin said. “Cutting the income tax rate will make Oklahoma more competitive on a national stage and is a step in the right direction as we work to make our state a better place to do business.”
“Broad-based tax relief is the most efficient and fair way to spur economic growth because it helps all Oklahomans,” said Steele, R-Shawnee. “Cutting our income tax rate will make Oklahoma a more attractive place to do business and a positive, national role model on economic policy.”
“The tax cuts are designed to stimulate economic growth and create private sector jobs, both of which are a priority,” stated Bingman, R-Sapulpa. “It is important that we remain committed to tax relief and allow the additional dollars in the private sector to create wealth in Oklahoma.”
The governor and legislative leaders made their announcement after the State Board of Equalization reported that tax collections indicate the certification for next year’s appropriations will be at least 4-percent greater than the current fiscal year, triggering an automatic reduction in the income tax rate under existing law.
Once the 4-percent growth rate is formally certified at the Board of Equalization’s February meeting, the rate reduction will be scheduled to take effect January 1, 2012. At that time, the state income tax rate will be cut from 5.5 percent to 5.25 percent with an estimated fiscal impact of just $61 million in 2012.
Once fully implemented, the tax cuts will collectively save Oklahoma families $150 million a year.