For Immediate Release: January 17, 2014
Sen. David Holt
Senate and House Lawmakers Introduce Bold Tax Cut Plan
A group of Republican lawmakers from the Oklahoma Senate and House
of Representatives have introduced a tax cut plan for consideration
in the 2014 legislative session that will lower Oklahoma’s
individual income tax rate to four percent within four years.
Last year, the Oklahoma Legislature approved a tax
rate reduction that would have lowered the individual income tax
rate to five percent, but that legislation was struck down late
in 2013 by the Oklahoma Supreme Court. As a result of the court’s
decision, the Republican government that took office in Oklahoma
following the 2010 elections still has not enacted a reduction
of Oklahoma’s individual income tax rate, which currently
sits at 5.25 percent.
Senate Bill 1849 and House Bill 3291, filed this week, would each
lower the state’s individual income tax rate to 4.75 percent
on January 1, 2015, then to 4.50 percent on January 1, 2016, 4.25
percent on January 1, 2017, and finally, four percent on January
“Economic growth and principles of a limited government
continue to be held back by our relatively high income tax rate,”
said state Sen. David
Holt, R-Oklahoma City, lead Senate author of SB 1849. “And
the problem is even more acute now that we find ourselves in an
income-tax sandwich between Texas, which has no income tax, and
Kansas, which has lowered its rate below ours. I have introduced
a tax cut bill every year I’ve been in office, and I supported
the 2013 tax cut that was later thrown out. But I believe we need
to be doing something bolder than was proposed in 2013. We should
view the Supreme Court’s decision as an opportunity to be
bolder this time.”
“Any time hardworking Oklahomans are allowed to keep more
of their own hard-earned money, it is a plus for them as individuals,
and for the state's economy as well,” said state Rep. Leslie
Osborn, R-Mustang, principal filing author of HB 3291. “The
state income tax has been lowered slowly over time from 7% to
5.25%. Nearly every time we have lowered the rate, we have seen
a commensurate rise in tax revenue to the state's coffers to fund
core services. When people have more of their own money to spend,
they invest in their businesses, and sales tax revenue increases.
It is a win-win situation for the citizens of Oklahoma.”
"When we talk about reducing Oklahoma's income tax rate,
we're talking about growing the overall economic pie in Oklahoma,"
said state Rep. Tom Newell, a fellow author of HB 3291. "In
order to increase job growth and the level of individual opportunity
in our state, we must reduce the penalty we charge on work and
productivity. In doing so, we will make it more attractive for
employers, both big and small, to invest here."
State Sen. Nathan Dahm, R-Broken Arrow, joins Holt as a co-author
of SB 1849. State Reps. David Brumbaugh, R-Broken Arrow, Josh
Cockroft, R-Tecumseh, Jon Echols, R-Oklahoma City, Elise Hall,
R-Oklahoma City, Mike Turner, R-Edmond, and Harold Wright, R-Weatherford,
join Osborn and Newell as co-authors of HB 3291.
SB 1849 and HB 3291 will each be considered in the 2014 legislative
session, which begins February 3.
For more information contact:
Sen. Holt: (405) 521-5636