Oklahoma City, Oklahoma 73105
For Immediate Release: December 27, 2013
Sen. Patrick Anderson
Anderson pushes flat tax for 2014 session
Sen. Patrick Anderson is urging state leaders to think outside the box when
considering ways to lower the income tax. He’s advocating passage of
Senate Bill 240 which would replace the current state income tax
with a 2.95 percent flat tax. Anderson originally introduced the
bill in the 2013 legislative session. The bill can still be
considered in the 2014 session when it begins in February.
Legislation signed into law last May which would have reduced the
state’s top income tax rate from 5.25 percent to five percent in
2015 was thrown out by the Oklahoma Supreme Court last week for
violating the Constitution’s single subject rule.
“In light of the Supreme Court ruling, this session presents the
perfect opportunity to consider a different approach,” Anderson
said. “We also know the state will have less money for core services
next fiscal year even as we’re facing growing expenses. A flat tax
would mean greater tax relief for Oklahomans without further
reducing the state’s already limited resources.”
SB 240 would eliminate all current income tax deductions, credits,
and exemptions. Under the proposal, the state income tax rate would
be cut nearly in half; however, there would be no loss of revenue to
state government. The Oklahoma Tax Commission reviewed the numbers
and determined that a flat rate of 2.95 percent, as Anderson has
proposed, would be revenue neutral.
If Anderson’s flat tax proposal is adopted, Oklahoma would join
eight other states which with a flat tax: Colorado; Illinois;
Indiana; Massachusetts; Michigan; Pennsylvania; Utah; and beginning
January 1, 2014, North Carolina will become the eighth state with a
flat income tax rate.
“True tax relief requires true tax reform,” said Anderson, R-Enid.
“The flat tax plan is simple, fair, and revenue neutral. I believe
this legislation represents a common sense tax cut plan that will
enable us to protect funding for core services while delivering
significant tax relief.”
For more information, contact:
Sen. Anderson: (405) 521-5630