Last week, I asked legislators to support me in implementing the most significant income tax reduction plan in state history: the Oklahoma Tax Reduction and Simplification Act.
Our plan is bold. It cuts income taxes by a significant amount for a majority of Oklahomans in every tax bracket and of every income level.
It is fast-acting. Our initial tax cuts would take place on Jan. 1, 2013.
It makes sense. Our plan takes Oklahoma's outdated, seven-tiered system — which taxes the first dollar that every Oklahoman makes — and replaces it with three common-sense brackets. Married couples filing jointly making less than $30,000 would pay no income taxes, or zero percent. A couple making between $30,000 and $70,000 would pay a 2.25 percent tax rate, a significant reduction. Finally, those making more than $70,000 would be taxed at a rate of 3.5 percent, down from 5.25 percent.
Our tax proposal is also responsible. The plan sets the stage for the complete elimination of the income tax by proposing a quarter-point reduction in taxes each year after the initial cuts. However, those cuts are tied to a revenue growth trigger of 5 percent, meaning that if the state experiences a shortfall or another recession, it won't be stripped of the revenue it needs to fund core services. Furthermore, our proposal is largely paid for by eliminating government waste as well as dozens of tax loopholes and tax credits, creating a system that benefits everyone as opposed to narrow special interests. Future economic growth — spurred by lower tax rates — will also help offset costs.