Oklahoma House passes tax-cut measures
We have now passed the deadline for House bills to be heard in the House. Every day last week we stayed late discussing and passing legislation, including 14 hours on the House floor Tuesday into Wednesday morning.
Altogether during the House hearings for this session there were 1,988 bills, house joint resolutions and house concurrent resolutions filed; 503 of those passed through committee, 425 were heard on the floor and 416 were passed. Two of the most important bills we voted on this week involved tax relief for Oklahomans and businesses.
We advanced significant tax relief for individuals and businesses Thursday through bills phasing out the corporate income tax over five years and reducing personal income taxes at all income levels.
House Bill 2041, by Speaker Charles McCall, reduces the personal income tax by .25% through a credit. It results in tax reductions for all income levels. Under HB 2041, the top income tax rate most taxpayers pay would be effectively reduced by .25%, from 5% to 4.75%, through a credit structure. To achieve tax relief for all income levels, various deductions are adjusted and earned income tax credit refundability is restored.
HB 2083, by McCall, gradually phases out the state’s duplicative, outdated corporate income tax, which is currently set at 6%. Over the next five years, a deduction would be used to reduce the effective rate by 20% a year until it phased out in 2026.
The bills, as a package, are designed to grow the economy, recruit new businesses, spur spending after the pandemic and, ultimately, grow state revenues.
Years of strong fiscal policies have produced record revenues, and we believe the timing is right to pass that savings on to the taxpayers. Additionally, the corporate tax phaseout will result in more businesses choosing to relocate and grow in Oklahoma, which will lead to more jobs and an even stronger economy. I’m proud to have supported both of these measures.
That’s it for this week, but stay tuned for my next update. We have a short break next week before coming back to hear Senate bills in the House. As always, thank you for your continued support.
If I can help you with anything, feel free to call my Capitol office at 405-557-7355 or email me at firstname.lastname@example.org.