It appears days are numbered for the trigger that would reduce Oklahoma’s top income tax rate from 5 to 4.85 percent.
Senate Bill 170, the measure repealing that trigger, is a House vote away from the governor's desk after passing committee.
House sponsor Rep. Earl Sears said repealing the trigger isn’t the end of tax cut discussions, though.
"Don't have a problem with reducing income tax, but with the times and the issues that we're dealing with right now, I truly believe that we need to repeal this and visit income tax reduction another day," Sears said.
Sears said Republicans have a solid tax platform, maintaining tax cuts are sound economic policy when times are good.
"Right now, in this economic downturn that we're having, if this trigger would come into place, it would be $100-plus million — this 4.85, fully implemented — that would be a hit to the budget," Sears said.
Minority Leader Scott Inman argued a prolonged energy slump isn’t the real issue with Oklahoma's budget.
"If it's just the energy sector, if that's all it is, then why, a few years ago when it was $100 a barrel, were we still passing budgets that cut agencies like education and DHS?" Inman said.
Under current law, Oklahoma’s top income tax rate would drop from 5 to 4.85 percent when state revenue grows enough to offset the cost of it. Oklahoma is following a $1.3 billion dollar budget shortfall for the fiscal year 2017 budget with an $878 million one for FY18.
