Current:Home > StocksOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -Finovate
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-24 11:37:47
OKLAHOMA CITY (AP) — Oklahoma Gov. Kevin Stitt renewed his pitch on Thursday for lawmakers to reduce the state’s individual income tax rate, but not all of his Republican colleagues in the Legislature are sold on the idea.
On the first day of a special session to consider Stitt’s call for a tax cut, the Senate voted to adjourn with no plan to return after Stitt declined an invitation to explain his proposal to the Senate Appropriations Committee.
Stitt’s absence underscores a growing tension between the second-term governor and the Republican-controlled Legislature that has largely centered on Stitt’s deteriorating relationship with the tribal nations based in Oklahoma.
“It’s not like he was out of the country. It’s not like he was out of the state. He was downstairs,” said Senate President Pro Tempore Greg Treat. “I saw his plan: cut spending, cut taxes. I have yet to see him present a budget that does the first part of that.”
While the Senate Appropriations Committee was preparing to meet to discuss the implications of a tax cut on state revenues, Stitt held a press conference with House Speaker Charles McCall and longtime anti-tax activist Grover Norquist in which the governor advocated for a 0.25% reduction to the state’s top individual income tax rate of 4.75%.
“I’ve asked for tax cuts. I’ve asked for tax fairness,” Stitt said. “Getting these things over the finish line are going to be wonderful for all 4 million Oklahomans, to slow the growth of government.”
McCall said House Republicans are prepared to support an income tax cut, but the Senate has been much more cautious in its approach to tax cuts.
Oklahoma’s revenue collections in recent years have reached all-time highs, fueled in large part by increased revenue from oil and gas production taxes and an infusion of federal COVID relief and other funds. But there are signs revenue collections are beginning to slow down, and some Republicans are concerned that cutting taxes could put the state on precarious financial footing if that trend continues.
The state’s individual income tax collections made up about one-third of the state’s $13.3 billion tax collections last year, and a 0.25% reduction is estimated to cost the state about $240 million annually.
Several GOP-led states have pushed for aggressive tax reductions that swept across states last year and have continued into 2023 — even as some warn that it might be wise for states to hold on to record large surpluses amid economic uncertainty.
Oklahoma also has an unusual provision added to its state constitution by voters in 1992 that any tax increase must be approved by a three-fourth’s vote of both legislative chambers, a feature that makes it extremely difficult to raise taxes during times of economic hardship.
With a hole in its budget of more than $1 billion in 2018 and a looming walkout of public school teachers, the Republican-led Legislature narrowly approved an increase in taxes on motor fuel, tobacco and energy production that has also played a role in the state’s growing revenue.
veryGood! (397)
Related
- Don't let hackers fool you with a 'scam
- Is Coal Ash Killing This Oklahoma Town?
- We asked, you answered: What precious object is part of your family history?
- $45 million misconduct settlement for man paralyzed in police van largest in nation's history, lawyers say
- New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
- Anxious while awaiting election results? Here are expert tips to help you cope
- Industries Try to Strip Power from Ohio River’s Water Quality Commission
- A Guide to Father of 7 Robert De Niro's Sprawling Family Tree
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Celebrated Water Program That Examined Fracking, Oil Sands Is Abruptly Shut Down
Ranking
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Mindy Kaling’s Swimwear Collection Is Equally Chic and Comfortable
- To fight 'period shame,' women in China demand that trains sell tampons
- A SCOTUS nursing home case could limit the rights of millions of patients
- 2025 'Doomsday Clock': This is how close we are to self
- Daily meditation may work as well as a popular drug to calm anxiety, study finds
- Americans with disabilities need an updated long-term care plan, say advocates
- Florida's 'Dr. Deep' resurfaces after a record 100 days living underwater
Recommendation
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
This is America's most common text-messaging scam, FTC says
South Carolina officer rescues woman mouthing help me during traffic stop
South Carolina officer rescues woman mouthing help me during traffic stop
Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
NOAA’s Acting Chief Floated New Mission, Ignoring Climate Change
Justice Department unseals Donald Trump indictment — and reveals the charges against him
As Amazon Fires Burn, Pope Convenes Meeting on the Rainforests and Moral Obligation to Protect Them