House Approves State Income Tax Cut
OKLAHOMA CITY (AP) — A plan backed by Gov. Mary Fallin to slash the state's top personal income tax rate has cleared the Oklahoma House.
The House voted 65-30 Tuesday to cut the top rate to 5 percent from 5.25 percent, beginning Jan. 1. The bill now heads to the Senate for consideration.
The Senate approved a separate measure on Monday to cut the rate to 4.75 percent and offset much of the lost revenue with the elimination of various exemptions and deductions.
According to a House fiscal analysis, the bill passed Tuesday would cost the state about $50 million in the upcoming fiscal year and $130 million when fully implemented.
Democrats opposed the measure, saying it would take away critical funding for education, transportation and public safety.