A revenue proposal capping itemized state income tax deductions at $17,000 has passed one chamber of the Oklahoma legislature.
The House passed House Bill 2403 Monday. The three-year cap instituted by the measure should raise $102 million a year.
Rep. Jason Dunnington asked whether lawmakers should be taking action on the measure now, as revenue-raising measures cannot be heard in the last five days of session but can be heard if the governor calls a concurrent special session for work on the budget.
"Why wouldn't we pause for a minute on this, wait for the governor to call a concurrent special, pass this in that, therefore, not jeopardizing what will be a very important piece of the budget?" Dunnington said.
Floor Leader Jon Echols determined HB2403 is not a revenue-raising measure, and it passed 56–40.
Rep. Kevin Calvey was one of the votes against the bill.
"Oklahoma policy makers should reject efforts to pass backdoor income tax increases and instead work to eliminate millions in subsidies for out-of-state wind companies, millions in bloat and waste in higher education, millions in tobacco settlement spending efforts in harassing Oklahomans about their health ... and millions in administrative overhead exploding in our public schools," Calvey said, reading from a letter from former Oklahoma U.S. Sen. Tom Coburn opposing HB2403.
Rep. David Perryman said what lawmakers really need to do is undo several recent years’ worth of income tax cuts.
"We've cut income taxes to the point that the carhop at Sonic corporation, at your local neighborhood drive-in, pays the same top income tax rate as the CEO of Oklahoma's largest corporations," Perryman said.
HB2403 exempts charitable donations from the cap, but items such as mortgage interest, medical expenses and child care expenses are subject to it.
