OKLAHOMA CITY – With inflation remaining at a 40-year high, House Republicans on Thursday advanced five new options the Legislature can choose from to provide tax relief to Oklahomans this session.
“Again, the House wants to address inflation today without causing budget problems tomorrow,” said House Speaker Charles McCall, R-Atoka. “With President Biden’s policies driving inflation up and more states cutting taxes – especially income taxes – last year than any year since 1986, Oklahoma must stay vigilant on tax relief. The options in these bills allow Oklahoma to aggressively fight inflation and continue competing economically while protecting its strong state budget.”
The tax relief options are:
- One-time income tax rebate of $125 for individuals and $250 for households
- Permanent income tax rate reduction of .25%
- Two-year grocery sales tax suspension
- Two-year enhancement of the grocery sales tax credit for low-income Oklahomans
- Eight-year phaseout of the corporate income tax
Each option should have no negative impact on the appropriated budget in the short or long term thanks to the way each is structured and current surplus revenue levels, according to legislators.
“All parties have brought several strong tax relief ideas to discuss as we begin budget negotiations,” said House Appropriations & Budget Chairman Kevin Wallace, R-Wellston. “Whether on their own or packaged together, the House’s ideas achieve shared tax relief goals today while acknowledging the inevitability of the incredible momentum presently enjoyed in our economy, and reflected in record state revenues, eventually subsiding someday.”