Current:Home > FinanceOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -Wealth Evolution Experts
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-24 10:13:09
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! (95)
Related
- The 401(k) millionaires club keeps growing. We'll tell you how to join.
- Brown has 22, Porzingis returns with 20 as Celtics open NBA Finals with 107-89 win over Mavericks
- TikToker Melanie Wilking Reacts After Sister Miranda Derrick Calls Out Netflix's Cult Docuseries
- Dolly Parton announces new Broadway musical 'Hello, I'm Dolly,' hitting the stage in 2026
- From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
- James Beard finalists include an East African restaurant in Detroit and Seattle pho shops
- I Use This Wireless, Handheld Vacuum for Everything & It Cleaned My Car in a Snap
- North Carolina woman and her dad complete prison sentences for death of her Irish husband
- Buckingham Palace staff under investigation for 'bar brawl'
- Get Starbucks delivered: Coffee giant announces new partnership with GrubHub
Ranking
- Taylor Swift makes surprise visit to Kansas City children’s hospital
- Coco Gauff falls to world No. 1 Iga Swiatek in French Open semifinals
- 2024 NBA Finals: ESPN's Doris Burke makes history in Game 1 of Mavericks vs. Celtics
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, It Couples
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- TikToker Melanie Wilking Reacts After Sister Miranda Derrick Calls Out Netflix's Cult Docuseries
- Zombies: Ranks of world’s most debt-hobbled companies are soaring - and not all will survive
- Maps show how Tornado Alley has shifted in the U.S.
Recommendation
USA men's volleyball mourns chance at gold after losing 5-set thriller, will go for bronze
Mistrial declared for man charged with using a torch to intimidate at white nationalist rally
Good Earth recalls 1.2 million lights after multiple fires and 1 death
Glee's Darren Criss And Wife Mia Swier Welcome Baby No. 2
Video shows dog chewing cellphone battery pack, igniting fire in Oklahoma home
Zombies: Ranks of world’s most debt-hobbled companies are soaring - and not all will survive
'You can judge me all you want': California mom's refusal to return shopping cart goes viral
NBA Finals Game 1 recap: Kristaps Porzingis returns, leads Celtics over Mavericks