Current:Home > ContactOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -Wealth Legacy Solutions
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
Chainkeen Exchange View
Date:2025-03-11 04:31:56
OKLAHOMA CITY (AP) — Oklahoma Gov. Kevin Stitt renewed his pitch on Thursday for lawmakers to reduce the state’s individual income tax rate, but not all of his Republican colleagues in the Legislature are sold on the idea.
On the first day of a special session to consider Stitt’s call for a tax cut, the Senate voted to adjourn with no plan to return after Stitt declined an invitation to explain his proposal to the Senate Appropriations Committee.
Stitt’s absence underscores a growing tension between the second-term governor and the Republican-controlled Legislature that has largely centered on Stitt’s deteriorating relationship with the tribal nations based in Oklahoma.
“It’s not like he was out of the country. It’s not like he was out of the state. He was downstairs,” said Senate President Pro Tempore Greg Treat. “I saw his plan: cut spending, cut taxes. I have yet to see him present a budget that does the first part of that.”
While the Senate Appropriations Committee was preparing to meet to discuss the implications of a tax cut on state revenues, Stitt held a press conference with House Speaker Charles McCall and longtime anti-tax activist Grover Norquist in which the governor advocated for a 0.25% reduction to the state’s top individual income tax rate of 4.75%.
“I’ve asked for tax cuts. I’ve asked for tax fairness,” Stitt said. “Getting these things over the finish line are going to be wonderful for all 4 million Oklahomans, to slow the growth of government.”
McCall said House Republicans are prepared to support an income tax cut, but the Senate has been much more cautious in its approach to tax cuts.
Oklahoma’s revenue collections in recent years have reached all-time highs, fueled in large part by increased revenue from oil and gas production taxes and an infusion of federal COVID relief and other funds. But there are signs revenue collections are beginning to slow down, and some Republicans are concerned that cutting taxes could put the state on precarious financial footing if that trend continues.
The state’s individual income tax collections made up about one-third of the state’s $13.3 billion tax collections last year, and a 0.25% reduction is estimated to cost the state about $240 million annually.
Several GOP-led states have pushed for aggressive tax reductions that swept across states last year and have continued into 2023 — even as some warn that it might be wise for states to hold on to record large surpluses amid economic uncertainty.
Oklahoma also has an unusual provision added to its state constitution by voters in 1992 that any tax increase must be approved by a three-fourth’s vote of both legislative chambers, a feature that makes it extremely difficult to raise taxes during times of economic hardship.
With a hole in its budget of more than $1 billion in 2018 and a looming walkout of public school teachers, the Republican-led Legislature narrowly approved an increase in taxes on motor fuel, tobacco and energy production that has also played a role in the state’s growing revenue.
veryGood! (5111)
Related
- FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
- Teacher's Pet: Mary Kay Letourneau and the Forever Shocking Story of Her Student Affair
- Planet Money Live: Two Truths and a Lie
- Elizabeth Gilbert halts release of a new book after outcry over its Russian setting
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- It's National Tequila Day 2023: See deals, recipes and drinks to try
- Inside Clean Energy: Navigating the U.S. Solar Industry’s Spring of Discontent
- Andrew Tate is indicted on human trafficking and rape charges in Romania
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Shell plans to increase fossil fuel production despite its net-zero pledge
Ranking
- Retirement planning: 3 crucial moves everyone should make before 2025
- Biden is targeting the ‘junk fees’ you’re always paying. But it may not save you money.
- Untangling All the Controversy Surrounding Colleen Ballinger
- Experts raised safety concerns about OceanGate years before its Titanic sub vanished
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- LGBTQ+ creatives rely on Pride Month income. This year, they're feeling the pinch
- Mike The Mover vs. The Furniture Police
- Supreme Court says 1st Amendment entitles web designer to refuse same-sex wedding work
Recommendation
Buckingham Palace staff under investigation for 'bar brawl'
Republican attacks on ESG aren't stopping companies in red states from going green
Qantas Says Synthetic Fuel Could Power Long Flights by Mid-2030s
TikTok Just Became a Go-To Source for Real-Time Videos of Hurricane Ian
Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
The Terrifying True Story of the Last Call Killer
When insurers can't get insurance
Not coming to a screen near you — viewers will soon feel effects of the writers strike