Senate Approves Largest Income Tax Cut Bill in Oklahoma History

The full Senate has given its approval to what would be the most substantial income tax cut in the history of Oklahoma. Senate Bill 2022, authored by Sen. Scott Pruitt seeks to lower the rate from 6.25 percent to 4.9 percent. He said the measure would be a great victory for Oklahomans that would allow them to keep more of their hard-earned dollars.

“This will represent a tax cut of about $480 million a year,” said Pruitt, R-Broken Arrow. “With a surplus of almost one billion dollars this year, it seems perfectly clear that the state is taking too much from our citizens. This simply ensures Oklahomans can keep more of their own money, and that’s money they’ll save, invest or spend—all of which are going to be good for our economy.”

Under Senate Bill 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.

“Historically, we know that significant tax relief results in economic growth and that’s exactly what we can expect to happen with my proposal,” Pruitt said. “When families can keep more of their own money, they can use it for things they need like shoes, clothes, or even household items which is going to put money back into their community, boosting the local economy.”

Pruitt also said the income tax cut would help attract new business and jobs to the state which would further boost Oklahoma’s economy.

SB 2022 now moves to the House of Representatives for further consideration.