Ending the state capital gains tax break is indeed off the table in the Oklahoma House.
Ending the state capital gains income tax deduction could bring in $120.5 million and has been a big piece of the Oklahoma Education Association's demand for increased public school funding. Despite Democrats trying to force a vote this week on the bill doing that as teachers looked on, the legislature is done with it because Republicans struck a deal to pass a more than $400 million revenue package last week.
"We agreed to get the votes for 1010, the revenue package. Members would vote for it, would deliver the 75 percent threshold if we didn’t vote on capital gains," said Appropriations and Budget Chair Kevin Wallace.
Wallace also said he's tired of people saying the capital gains deduction is only used by wealthy Oklahomans.
"There’s Cattlemen’s Association, Farm Bureau, everybody else against it. It hits mom and pops," Wallace said. "It hits people that have had ranches and cattle production — middle-income families — once they sell the farm that they’ve had in the family for years and years."
An incentive evaluation commission found 85 percent of people claiming the deduction make more than $200,000 a year and it’s a net loss for the state.
With the House about to adjourn Thursday after Democrats again tried to force a vote on ending the capital gains tax break, Rep. Claudia Griffith said she wants to stay until lawmakers’ job is done.
"We still have another bill that we could be hearing right now on this floor, which we have tried to do several times and have been voted down," Griffith said.
"Your caucus, or, at least your leadership, was aware that they could have either 5 percent [gross production tax] or the capital gains tax," said Majority Leader Jon Echols. "As a matter of fact, representative, I have that in writing."
