OKLAHOMA CITY (AP) — Oklahoma Gov. Mary Fallin publicly acknowledged for the first time Monday that a steep reduction she proposed for the state's top personal income tax rate will not happen this year.
Legislative leaders aren't willing this session to implement the plan she outlined to reduce Oklahoma's top rate from 5.25 percent to 3.5 percent beginning in 2013, Fallin said during an interview with The Associated Press.
“There doesn't seem to be the appetite in the state Legislature to make a huge, significant cut in the income tax, but I'm still pushing to get an income tax reduction that will be meaningful, that will help the people of Oklahoma and certainly help our business owners,” Fallin said.
Fallin, who met Monday with budget negotiators in the House and Senate, would not say how deep a cut she expects, but that lawmakers in the GOP-controlled House are discussing a cut that would drop the top rate below 5 percent.
“I know the legislative leaders have talked about getting it under 5 percent, which is better than what we have now, but I was hoping we could do more,” Fallin said.
Fallin outlined a plan in her State of the State speech in February to cut the top rate, reduce the number of income tax brackets from seven to three, and implement a trigger to further reduce the rate by one-quarter of 1 percent every year that state revenue collections increase by 5 percent or more.