With tensions over the budget increasing at the capitol, Oklahoma lawmakers will take up a new proposal to cap itemized deductions.
Like House Bill 2347, House Bill 2403 caps them at $17,000. HB2403, however, exempts charitable contributions.
"So, if a blessed individual donates $100,000 to a charity, they will be able to get the full amount of that deduction on their state return," said Oklahoma Tax Commission Director Tony Mastin.
HB2403 could bring in nearly $102 million dollars next year, about $64 million less than the previously proposed cap. Senator Kim David said she’s with many legislators who don’t want to make Oklahomans pay more in taxes.
"But the fact is, is that we have a — actually, a $900 million hole that will devastate education, health care, public safety and our prison systems, and our roads," David said.
Sen. Roger Thompson said his constituents are telling him they’ll pay a little more.
"'We want education fixed. We want health care fixed,'" Thompson said. "The avenues that we have to get there are somewhat limited. If we look at the revenue measures that are truly revenue measures, [they] must come out of the House. This body is aware there have been few to none that have actually come out of the House."
After passing the House Joint Committee on Appropriations and Budget on Thursday, HB 2403 narrowly passed the Senate JCAB in a rare Friday session, 19–18. Members supporting the bill pushed colleagues to vote for it, calling it the only vehicle they have right now to close the $878 million budget shortfall.
