Sen. Pruitt’s Historic Tax Cut Clears House

State Sen. Scott Pruitt’s legislation to lower the state income tax rate from 6.25 percent to 4.9 percent has cleared another major hurdle. Senate Bill 2022, containing the largest tax cut in the history of the state, has now been approved by the House of Representatives.

“This is a huge victory for Oklahoma taxpayers,” said Pruitt, R-Broken Arrow. “This is not just a token rebate—this is a tax cut that over the next few years is going to put literally thousands of dollars back in the pockets of Oklahoma families.”

If signed into law, on July 1, 2006, the state income tax would be lowered from 6.25 percent to 4.9 percent. Under the provisions of SB 2022, the state would use $183 million of the available growth revenue to offset the immediate impact of the tax cut. When fully implemented, it will result in a tax reduction of approximately $480 million a year.

“As I’ve said before, this $480 million will go right back into our economy, whether people save, spend or invest it,” Pruitt said. “That’s going to help existing businesses grow and attract new ones, ultimately creating a larger tax base that will help us invest even more in education, public safety, transportation, and in other areas as well.”

Because the measure was amended in the House to restore the title, the bill must now return to the Senate for further consideration.

“When SB 2022 was first approved by the full Senate, it passed with overwhelming support by a vote of 35 to 11,” Pruitt said. “I am hopeful that when this body has the opportunity to consider this measure again, we’ll see the same enthusiastic support and we can then send it to Governor Henry for his approval.”