Sen. Jolley says plan ensures lower taxes for retirees, military

When the full Senate takes up a measure next week to gradually phase-out Oklahoma’s income tax, the bill will address concerns raised by retirees and members of the military. Sen. Clark Jolley, R-Edmond, is the author of Senate Bill 1571, also known as the OCPA/Laffer Plan. The Senate is expected to consider his legislation when members reconvene on Monday.

“We want to make sure that we do what is best for all Oklahomans, including our retirees and those serving their country,” Jolley said. “This newest proposal gives much-needed tax relief to our citizens living on fixed incomes, our military, and those who have chosen Oklahoma for their retirement home.”

In the first year, Jolley’s bill would decrease the state income tax rate from 5.25 percent to 2.5 percent. No tax would be imposed on single filers with taxable income of $8,700 or less and for married filers with taxable income of $15,000 or less. After that, there would be annual reductions of .25 until the income tax is completely phased out in 2022. Beginning in 2013, individual tax credits, deductions and exemptions will be eliminated except for:

Active duty military compensation
Retirement benefits from public pension systems
Social Security benefits
Certain deferred compensation distributions
Retirement benefits from non-public pension systems
Military retirement benefits
Civil service retirement benefits in lieu of Social Security

“We will continue to refine SB 1571 as it moves through the legislative process, and ensure our retirees and military have a voice, and I will continue to fight to lower tax burdens for all Oklahomans,” Jolley said.