Senate Democrats’ Effort to Expand Welfare-Style Program Defeated in Finance Committee

- Republican senator seeks committee hearing on his bill to reduce income tax on low income Oklahomans

By a 7 to 6 vote, Republicans on the Senate’s Finance Committee defeated an effort by Senate Democrats to expand a welfare-style program.

Senate Bill 1821, by Sen. Constance Johnson, D-Oklahoma City, would have doubled the state’s Earned Income Credit, a welfare-style program that provides income tax “refunds” to some individuals even when they pay very little or no income taxes.

“I think Sen. Constance Johnson means well, but her bill is the latest in a long line of the Senate Democrats’ failed economic policies that have made Oklahoma one of the poorest, most anti-business states in the union,” stated Senate Republican Leader Glenn Coffee, a member of the Finance Committee.

“Senate Republicans believe a better way to attract and keep good jobs is through comprehensive, long-term tax reforms that reduce the tax burden and attract capital, investments, and entrepreneurs to our state,” said Coffee, R-Oklahoma City.

Sen. Mike Johnson, R-Kingfisher, said his Senate Bill 32 represents a better way to reduce the tax burden on low income Oklahomans.

“My bill, SB 32, represents a better way to reduce the tax burden on low income Oklahomans by tripling the state’s personal income tax exemption from $1,000 to $3,000. This new exemption could take thousands of low income Oklahomans entirely off our tax rolls,” said Mike Johnson, a member of the Senate Finance Committee, noting that the state’s highest income tax rate kicks in at around $10,000 of taxable income.

Mike Johnson asked Finance Committee Chairman Jay Paul Gumm, D-Durant, to hear Senate Bill 32 at next week’s Finance Committee meeting. Sen. Gumm was non-committal in his response.