Senate OKs Fallin's Income Tax Cut Plan
OKLAHOMA CITY (AP) — Gov. Mary Fallin's plan to slash and phase out the state's income tax has passed the Senate, even though there is still no agreement on how much of a cut may be possible this year.
The Senate voted 30-16 on Wednesday for Fallin's bill that would cut the top personal income tax rate from 5.25 percent to 3.5 percent and then further reduce the rate by one-quarter of 1 percent each year that state revenue grows by 5 percent or more. Fallin's plan also gets rid of numerous personal and corporate tax exemptions to help offset the lost revenue.
But Republican legislative leaders say they're still negotiating several tax cut plans and have acknowledged it's unlikely that a cut of more than 1 percent can be accomplished this year.
Copyright 2012 The Associated Press.