Current:Home > MarketsOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -FundWay
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-17 10:31:56
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! (77948)
Related
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Attention, #BookTok, Jessica Chastain Clarifies Her Comment on “Not Doing” Evelyn Hugo Movie
- The activist who threw soup on a van Gogh says it's the planet that's being destroyed
- Climate change makes heat waves, storms and droughts worse, climate report confirms
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Did the world make progress on climate change? Here's what was decided at global talks
- Why heavy winter rain and snow won't be enough to pull the West out of a megadrought
- Climate change likely helped cause deadly Pakistan floods, scientists find
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- Italian rescuers search for missing in island landslide, with one confirmed dead
Ranking
- South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
- It's going to be hard for Biden to meet this $11 billion climate change promise
- Here's what happened on day 3 of the U.N.'s COP27 climate talks
- Why Women Everywhere Love Ashley Tisdale's Being Frenshe Beauty, Wellness & Home Goods
- Could your smelly farts help science?
- Bachelor Nation's Sean Lowe Says Son Needed E.R. Trip After Family Dog Bit Him
- One Uprooted Life At A Time, Climate Change Drives An American Migration
- Impact investing, part 1: Money, meet morals
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
How to help people in Puerto Rico recover from Hurricane Fiona
Kate Spade 24-Hour Flash Deal: Get This $360 Satchel Bag for Just $89
See Becky G, Prince Royce, Chiquis and More Stars at the 2023 Latin AMAs
Nearly half of US teens are online ‘constantly,’ Pew report finds
War fallout and aid demands are overshadowing the climate talks in Egypt
Ryan Reynolds Jokes His and Blake Lively's Kids Have a Private Instagram Account
The White Lotus Season 3 Will Welcome Back a Fan Favorite From Season One