Senator Jay Paul Gumm
Assistant Majority Leader
Senate District 6
Bryan, Johnston, Atoka, Coal and Marshall Counties
Members of the State Senate Friday approved a pair
of tax reduction bills that will save working families, veterans
and retirees hundreds of dollars annually on their state income
Senate Bill 435 passed the Senate on a 40-7 vote. It contains provisions
to raise the standard deduction – the single most effective
method of lowering taxes on working families, said Senator Jay
Paul Gumm, author of the measure.
“Raising the standard deduction will strengthen families by
putting money back in the pockets of every Oklahoma taxpayer and
help us make a better tomorrow for our children,” said Gumm,
a Democrat from Durant.
SB 435 also eliminates the state’s highest income tax rate
of 10 percent by eliminating the “Method II” portion
of the income tax code and increases the amount of retirement income
that is exempt from state income tax.
Senate members also passed a companion measure Friday, sending House
Bill 1547 to Governor Brad Henry on a second 41-3 vote The House
measure lowers income tax rate most Oklahomans pay from 6.65 percent
to 6.25 percent and eliminates capital gains taxes for corporations.
Combined the two measures will save a working family of four making
$50,000 more than $200 a year on their state income taxes.
The tax cuts, as contained in nearly two dozen bills passed in the
Senate this week, total $58 million in Fiscal Year 2006 and when
fully implemented in FY 2007 will save Oklahoma taxpayers more than
$150 million annually.
“This package of targeted tax cuts will strengthen families,
boost small businesses, and give every Oklahoma community an opportunity
to fulfill its promise,” Gumm said. “It will put money
back in the pockets of working families and make Oklahoma a more
attractive retirement destination.
“It will accomplish all of those things while protecting the
state’s ability to maintain its investment in public education,
health care, job creation and the services our state’s most
vulnerable citizens count on every day.”
For more information contact:
Senator Gumm's Office- (405) 521-5586