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7:56 am
Thu May 2, 2013

Oklahoma House Gives Final Approval to Income Tax Cut

Credit KWGS News File Photo

OKLAHOMA CITY (AP) — The Oklahoma House has given final legislative approval to a bill that would reduce Oklahoma's top income tax rate to 5 percent — despite objections by Democrats who say it will threaten funding for public education and other critical state services.

The House voted 65-35 Wednesday for the bill that now heads to Gov. Mary Fallin, who is expected to sign it. It would cut the top rate from 5.25 percent to 5 percent beginning in 2015 — with a second cut to 4.85 percent set for 2016 if state revenues continue to rise.

Slashing Oklahoma's income tax has been a top priority for Fallin, who says a tax cut will help improve Oklahoma's economy.

The cuts — if both take effect — would cost an estimated $237 million annually.