Personal Taxes

Oklahoma lawmakers push plan to drop state’s personal revenue tax

Oklahoma lawmakers pushed a plan that would drop the state’s personal income tax. A new push gained steam at the Capitol to eventually drop the state’s personal income tax to zero percent.>> Related: Gov. Kevin Stitt delivers State of the State address If you’ve done your taxes already this year, you know that you pay 4.75% of your taxable income to the state in income tax. This plan would drop that number by 0.5% every year until it finally gets to zero, on one condition.”Nine states don’t charge a personal income tax. Many others are racing to join them, and we can’t be left behind,” Gov. Kevin Stitt said. Stitt raised the idea as a priority in his State of the State address and a new bill outlines how it could happen. If passed, it would cut the income tax by 0.5% every year for ten years until it drops to zero. However, this would only happen in years when state revenue goes up by a certain amount.>> Related: Oklahoma lawmakers focus on education ahead of governor’s addressOutside the budget from the 2020 session, we have seen that happen the past few years.Stitt said that it is to avoid budget shortfalls.”Cutting taxes based on how our economy grows ensures that we’ll always have money to pay for core services like education, roads and bridges. And as our economy grows, Oklahomans share in our success by keeping more of their hard-earned money,” Stitt said.

Oklahoma lawmakers pushed a plan that would drop the state’s personal income tax.

A new push gained steam at the Capitol to eventually drop the state’s personal income tax to zero percent.

>> Related: gov. Kevin Stitt delivers State of the State address

If you’ve done your taxes already this year, you know that you pay 4.75% of your taxable income to the state in income tax. This plan would drop that number by 0.5% every year until it finally gets to zero, on one condition .

“Nine states don’t charge a personal income tax. Many others are racing to join them, and we can’t be left behind,” Gov. Kevin Stitt said.

Stitt raised the idea as a priority in his State of the State address and a new bill outlines how it could happen.

If passed, it would cut the income tax by 0.5% every year for ten years until it drops to zero. However, this would only happen in years when state revenue goes up by a certain amount.

>> Related: Oklahoma lawmakers focus on education ahead of governor’s address

Outside the budget from the 2020 session, we have seen that happen the past few years.

Stitt said that it is to avoid budget shortfalls.

“Cutting taxes based on how our economy grows ensures that we’ll always have money to pay for core services like education, roads and bridges. And as our economy grows, Oklahomans share in our success by keeping more of their hard-earned money, “Stitt said.

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