Local & Regional
Sat February 18, 2012
Governor's Tax Plan Reviewed
Oklahoma City, OK – APNewsBreak: Fallin tax plan wipes out deductions
OKLAHOMA CITY (AP) An analysis of Governor Mary Fallin's proposed income tax plan shows that Oklahoma would do away with $888 million worth of deductions and exemptions while simplifying returns and lowering the state's maximum tax rate.
The Oklahoma Tax Commission prepared the review for the governor's office, and The Associated Press obtained a copy of it under the state's Open Records Act.
Nearly one in three Oklahoma tax filers would see their liability increase as deductions for mortgage interest and charitable giving go away. Gone, too, would be the $1,000 personal exemption, plus exemptions for Social Security, military pay and retirement income.
At the same time, Oklahoma's top tax rate would drop from 5.25 percent to 3.5 percent.
Fallin's tax plan has not yet been introduced to state legislators.