State Sen. Scott Pruitt said he was elated after a House committee joined the full Senate in approving his legislation to lower the state income tax rate from 6.25 percent to 4.9 percent. If signed into law, Pruitt’s measure, Senate Bill 2022, would be the largest tax cut in the history of the state.
“Within just a few short years, Oklahoma families would save literally thousands of dollars on their state income taxes,” said Pruitt, R-Broken Arrow. “That’s money they can save, invest or spend, all of which is going to help Oklahomans and our economy.”
Under SB 2022, the state income tax would be lowered from 6.25 percent to 4.9 percent beginning on July 1, 2006. The state would use $183 million of the available growth revenue to offset the immediate impact of the tax cut.
“This will represent a tax cut of about $480 million a year. When you consider the multiplier effect when we put that money back into businesses across the state and how this more attractive tax environment is going to help attract new businesses, I can tell you that ultimately this will result in a larger tax base, helping us better fund vital services like education, roads and public safety, without overtaxing our citizens,” Pruitt said.
When Pruitt first unveiled his proposal just before the beginning of the 2006 session, the response from Oklahomans was overwhelming.
“It came from small towns and large cities, from business people and working men and women,” Pruitt said. “I think the tremendous support we’ve seen in the Legislature for SB 2022 is a reflection of that.”
SB 2022 will next be considered by the full House of Representatives.