Saying it was important to create an environment that would encourage capital investments and economic growth, Senator Mark Snyder has won committee approval for his legislation phasing out capital-gains taxes.
Our current taxation of long terms capital gains discourages the kind of investment and economic growth Oklahoma must have to become prosperous. My legislation calls for a gradual reduction over the next several years until weve finally eliminated the tax altogether, explained Snyder, R-Edmond.
However, Snyder explained, Senate Bill 1286 does contain built in safety features which would delay the yearly decrease should economic conditions necessitate it.
Obviously, we dont want to undercut services like public safety and education, but when our economy improves, we want to take steps that will heighten that growth. I believe this legislation will enable us to do that, said Snyder.
Under SB 1286, the first yearly phase in would not begin until tax year 2003. The estimated revenue decrease in the first year would be $14.8 million.
This is a significant reduction for Oklahomans, and one which I believe will encourage the kind of investment we need to get our economy going and help attract families and businesses to our state. In a year when we are losing a congressional seat, we need to take every opportunity to approve legislation and reforms that will help get us back on track, said Snyder.
SB 1286 now moves to the full Senate for further consideration.