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Oklahoma House approves tax cut bill

The state House of Representatives on Thursday approved a bill to cut the state’s top individual income tax rate by 0.25 percent.
by Randy Ellis Modified: March 6, 2014 at 10:25 pm •  Published: March 6, 2014

Following passionate debate, the Oklahoma House of Representatives approved a bill Thursday to cut the state’s top individual income tax rate by 0.25 percent and the corporate income tax rate by 1 percent.

“This legislation strikes the balance between lowering the tax burden on families and businesses and ensuring core government functions are funded,” House Speaker Jeff Hickman said after the measure passed 57-34.

The personal income tax rate would be reduced from 5.25 percent to 5 percent and the corporate income tax rate would go from 6 percent to 5 percent if the bill were to become law.

The planned cuts would be contingent on personal income tax revenues and corporate income tax revenues experiencing enough revenue growth to offset the amount of revenue loss due to the cuts. The earliest the reductions could take effect would be 2016.

The state Senate previously passed its own income tax cut bill, so negotiators from the two chambers will now meet to see if they can agree on a version that can pass both houses and be presented to the governor for final approval.

Most House Republicans voted for the House bill presented Thursday, while all 28 Democrats who were present voted against it.

Democrats repeatedly stood up to argue that lawmakers should spend money on improving state services and facilities rather than passing a tax cut.

“This is a piece of the Capitol that we have failed to fix over the last three years,” said state Rep. Richard Morrissette, D-Oklahoma City, as he waved around a piece of broken and corroded pipe taken from the Capitol’s plumbing system.

“We have convenience store clerks that are making more than corrections officials,” added state Rep. Joe Dorman, D-Rush Springs.

State Rep. James Lockhart, D-Heavener, said the proposed tax cut would only mean about $8 a month to the average Oklahoma working family, which he said wasn’t even enough to pay for the breakfast he had Thursday morning.

House Republicans countered by arguing that a tax cut would lead to economic growth and that state agencies will always contend they have unmet economic needs.

“Between 1995 and 2010, the nine states with no personal income tax gained $146 billion in working wealth,” said state Rep. Jason Nelson, R-Oklahoma City. “The nine states with the highest per capita personal income tax lost $107 billion.”

“There’s never enough money to feed the machine,” said state Rep. Earl Sears, the House author of House Bill 2508. “Federal government, state government, your local government — they never can get enough money... I think sometimes we literally have forgotten that what funds this place is the hard working people in this state.”

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by Randy Ellis
Investigative Reporter
For the past 30 years, staff writer Randy Ellis has exposed public corruption and government mismanagement in news articles. Ellis has investigated problems in Oklahoma's higher education institutions and wrote stories that ultimately led to two...
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