Sen. Pruitt Lauds Passage of Income Tax Cut Bill

Calling it a victory for Oklahoma taxpayers, State Sen. Scott Pruitt said he was very pleased by the Senate Finance Committee vote on Tuesday approving his legislation to reduce the state income tax rate from 6.25 percent to 4.9 percent. The measure passed with bipartisan support.

Pruitt, R-Broken Arrow, said the bill would enable citizens to keep more of their hard-earned dollars. When fully implemented in 2007, it would represent a tax cut of approximately $480 million a year.

"For a family of four making $40,000 a year, it would mean they would keep $400 more a year than they do now. That's money they'll be able to spend in their local communities and that's going to have a tremendous domino effect on our economy," said Pruitt. "It's going to enable Oklahomans to do more for their families, whether it's being able to buy things they need or save more for college or retirement. It will also help attract new businesses and jobs to our state, further enhancing the economy."

Under Senate Bill 2022, the state income tax would be lowered from 6.25 percent to 4.9 percent beginning on July 1, 2006. The measure calls for using $183 million of the state's growth revenue to offset the immediate impact of the tax cut.

"The economic growth that will result from the cut will more than offset the long-term impact in state tax revenues because Oklahomans will have more money to spend and we're going to create jobs," said Pruitt.

Pruitt pointed to the double-digit growth in state spending last year and roughly $680 million in new money that will be available in the 2007 budget year as proof that the cut is something Oklahoma needs and can afford.

"State Government grew by 12 percent last year. Politicians were spending a staggering $200 a second then giving taxpayers a $45 rebate check. To add insult to injury, everyone has to pay income tax on that rebate," Pruitt said.

"I don't think it really helped Oklahomans that much in the long run. Instead of spending first and returning to taxpayers what only amounts to a token, I believe we should prioritize spending and provide meaningful tax relief that really will help Oklahoma now and in the future with a stronger economy."

Pruitt also expressed his thanks to Finance Committee Chairman Jay Paul Gumm for giving the bill a hearing.

"I believe this issue and this dialogue are very important to the future of our state. I want to commend Senator Gumm for allowing this measure to be heard," Pruitt said.

SB 2022 now moves to the full Senate for further consideration.