Oklahoma’s House and Senate leaders have promised a renewed focus next year on tax cuts, a problem that not too long ago created stress between the two legislative chambers and the governor’s workplace.
“Tax reform is going to be something that we focus on this year,” stated House Speaker Charles McCall, talking Tuesday at the State Chamber’s annual public affairs discussion board, which legislative leaders have historically used as a platform to spotlight coverage priorities forward of the next legislative session.
McCall, R-Atoka, didn’t embody any particulars in his five-minute handle however did reference the private earnings tax price, which he has labored to decrease lately.
McCall oversaw a 0.25% lower in 2021, setting the price most Oklahomans pay at 4.75%.
While Oklahoma’s price is decrease than many states in the area, McCall stated it was nonetheless not as little as Colorado or Texas, which doesn’t have a private earnings tax.
“We have chipped away at that (over) the last few years … but we still have work to be done,” McCall said.
More:Governor’s appointees file first financial disclosure forms
McCall and House Republicans passed another income tax cut earlier this year, but the bill was opposed by the state Senate.
Senate Pro Tem Greg Treat, R-Oklahoma City, called the effort an election-year political stunt.
On Tuesday, Treat said he was open to tax reform but was not ready to talk specifics.
Sen. David Radar, the Senate’s Republican caucus chair, is currently leading a tax reform working group to study specific policy ideas.
“I’m not going to presuppose what they’re going to give you,” Treat told The Oklahoman on Tuesday. “They’ve to get it to me by January, so we’re critical about actual thorough tax reform.”
With majorities of 81 to 20 in the House, and 40 to eight in the Senate, Republicans can control much of the legislative agenda this coming session, which begins in February.
However, most tax cut proposals will require wide Republican support as Demcoratic leaders continue to signal their opposition.
“Our argument towards earnings tax cuts is we all know who really advantages from these, and it is usually not working Oklahomans,” said Rep. Cyndi Munson, leader of the House Democrats.
Munson, D-Oklahoma City, said her caucus supports an end to the state sales tax on groceries, which the House approved earlier this year.
But a grocery tax cut could again be a tough sell in the Senate.
“I’m not in favor of it,” Sen. Roger Thompson, the Senate’s appropriation chair, stated in an interview with KOCO. “I feel we’re going to have to have a look at one other avenue if we wish to do tax discount.”
Warning signs of a looming recession have some lawmakers worried the timing is wrong to work for further tax cuts.
Munson said her caucus was worried it could lead to another era of budget deficits.
“We could be fairly cautious about reducing taxes once more and residing by means of what we did in 2016, 2017 and 2018,” Munson stated.
submit credit score to Source link