Current:Home > NewsOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -Wealth Navigators Hub
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-16 03:05:21
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! (8122)
Related
- Sonya Massey's father decries possible release of former deputy charged with her death
- Top assassin for Sinaloa drug cartel extradited to US to face charges, Justice Department says
- Q&A: New Legislation in Vermont Will Make Fossil Fuel Companies Liable for Climate Impacts in the State. Here’s What That Could Look Like
- 'Ready to make that USA Team': Sha'Carri Richardson cruises to 100m win at Pre Classic
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Why is Messi not in Vancouver? Inter Miami coach explains absence; star watches son play
- Cars catch fire in Boston’s Ted Williams Tunnel, snarling Memorial Day weekend traffic
- Defense Secretary Lloyd Austin undergoes successful non-surgical procedure, Pentagon says
- Arkansas State Police probe death of woman found after officer
- Rescue efforts for canoeists who went over Minnesota waterfall continue; Guard deployed
Ranking
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- A rare 6-planet alignment will occur next month. Here's what to know.
- Sister of Israeli hostage seen in harrowing video says world needs to see it, because people are forgetting
- National Spelling Bee reflects the economic success and cultural impact of immigrants from India
- Woman dies after Singapore family of 3 gets into accident in Taiwan
- Man United wins the FA Cup after stunning Man City 2-1 in the final
- Jan. 6 defendant nicknamed Sedition Panda convicted of assaulting law enforcement officer
- A rare 6-planet alignment will occur next month. Here's what to know.
Recommendation
Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
Grayson Murray dies at age 30 a day after withdrawing from Colonial, PGA Tour says
Friday’s pre-holiday travel broke a record for the most airline travelers screened at US airports
The Daily Money: Moving? Research the company
John Galliano out at Maison Margiela, capping year of fashion designer musical chairs
Caitlin Clark faces defending WNBA champs: How to watch Indiana Fever vs. Las Vegas Aces
MLB's five biggest surprises: Are these teams contenders or pretenders in 2024?
Will Pacers' Tyrese Haliburton, Celtics' Kristaps Porzingis play in Game 3 of East finals?