The measure would end all income tax credits and most deductions, exemptions and exclusions for individual income tax filers staring with tax year 2013.
The following exemptions would still be allowed: retirement benefits from public and nonpublic pension systems, military retirement benefits, Social Security benefits and civil service retirement benefits in lieu of Social Security. The deduction for active-duty military compensation, as well as the exclusion for certain deferred-compensation distributions, also would stay.
Osborn said she is working to restore a deduction for volunteer fire departments.
SB 1571 passed with no debate or vocal opposition.
Osborn said after the subcommittee hearing that she's heard mostly positive comments about SB 1571, by Sen. Clark Jolley, R-Edmond, and HB 3038 since restoring exemptions and deductions for retirees and military veterans.
“These triggers may be the last big fire we need to put out for people who say, ‘I like the idea, but just tell me what to do if this doesn't work, if the economy does something?'” Osborn said. “We're getting very close to hitting all the big issues that were a concern to most of the citizens we're hearing from around the state.”
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Rep. Leslie Osborn's measures are among four personal income tax-cutting bills being considered by lawmakers. Others are HB 3061, which contains Gov. Mary Fallin's plan, and SB 1623. Both call for economic triggers.