Current:Home > MarketsOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -FinanceCore
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-17 11:40:18
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! (8)
Related
- As Trump Enters Office, a Ripe Oil and Gas Target Appears: An Alabama National Forest
- The $16 Million Was Supposed to Clean Up Old Oil Wells; Instead, It’s Going to Frack New Ones
- Meta allows Donald Trump back on Facebook and Instagram
- Maui Has Begun the Process of Managed Retreat. It Wants Big Oil to Pay the Cost of Sea Level Rise.
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Unsolved Mysteries: How Kayla Unbehaun's Abduction Case Ended With Her Mother's Arrest
- Environmental Justice Leaders Look for a Focus on Disproportionately Impacted Communities of Color
- In Final Debate, Trump and Biden Display Vastly Divergent Views—and Levels of Knowledge—On Climate
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- A rocky past haunts the mysterious company behind the Lensa AI photo app
Ranking
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Inside Clean Energy: At a Critical Moment, the Coronavirus Threatens to Bring Offshore Wind to a Halt
- At COP26, Youth Activists From Around the World Call Out Decades of Delay
- Inside Clean Energy: General Motors Wants to Go Big on EVs
- Small twin
- Read Jennifer Garner's Rare Public Shout-Out to Ex Ben Affleck
- Here's where your money goes when you buy a ticket from a state-run lottery
- Drive-by shooting kills 9-year-old boy playing at his grandma's birthday party
Recommendation
Trump invites nearly all federal workers to quit now, get paid through September
Coal-Fired Power Plants Hit a Milestone in Reduced Operation
Minnesota man arrested over the hit-and-run death of his wife
World Talks on a Treaty to Control Plastic Pollution Are Set for Nairobi in February. How To Do So Is Still Up in the Air
The White House is cracking down on overdraft fees
The story of Monopoly and American capitalism
This snowplow driver just started his own service. But warmer winters threaten it
Thom Browne's win against Adidas is also one for independent designers, he says