For Immediate Release: March 12, 2012
The full Senate has voted in favor of a measure to gradually
phase out the state income tax. Senate Bill 1571, also known as the
OCPA/Laffer Plan, was approved Monday, 30 to 17. Sen. Clark
Jolley, R-Edmond, is the principal author of the legislation. He
said one important change made since the bill left committee is an amendment
that addresses concerns raised by retirees and Oklahomans in the military.
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
“This plan enables us to create a more prosperous state, attracting businesses and high-paying jobs while continuing to ensure the core functions of government remain a top priority,” Jolley said. “Passage of this measure represents a major turning point in our efforts to build a better future for all Oklahomans.”
Senate President Pro Tempore Brian Bingman praised Jolley’s
work on SB 1571, which now moves to the House for further consideration.