Current:Home > ContactOklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea. -Global Capital Summit
Oklahoma’s Republican governor wants to cut taxes. His GOP colleagues aren’t sold on the idea.
View
Date:2025-04-18 17:12:18
OKLAHOMA CITY (AP) — Oklahoma Gov. Kevin Stitt renewed his pitch on Thursday for lawmakers to reduce the state’s individual income tax rate, but not all of his Republican colleagues in the Legislature are sold on the idea.
On the first day of a special session to consider Stitt’s call for a tax cut, the Senate voted to adjourn with no plan to return after Stitt declined an invitation to explain his proposal to the Senate Appropriations Committee.
Stitt’s absence underscores a growing tension between the second-term governor and the Republican-controlled Legislature that has largely centered on Stitt’s deteriorating relationship with the tribal nations based in Oklahoma.
“It’s not like he was out of the country. It’s not like he was out of the state. He was downstairs,” said Senate President Pro Tempore Greg Treat. “I saw his plan: cut spending, cut taxes. I have yet to see him present a budget that does the first part of that.”
While the Senate Appropriations Committee was preparing to meet to discuss the implications of a tax cut on state revenues, Stitt held a press conference with House Speaker Charles McCall and longtime anti-tax activist Grover Norquist in which the governor advocated for a 0.25% reduction to the state’s top individual income tax rate of 4.75%.
“I’ve asked for tax cuts. I’ve asked for tax fairness,” Stitt said. “Getting these things over the finish line are going to be wonderful for all 4 million Oklahomans, to slow the growth of government.”
McCall said House Republicans are prepared to support an income tax cut, but the Senate has been much more cautious in its approach to tax cuts.
Oklahoma’s revenue collections in recent years have reached all-time highs, fueled in large part by increased revenue from oil and gas production taxes and an infusion of federal COVID relief and other funds. But there are signs revenue collections are beginning to slow down, and some Republicans are concerned that cutting taxes could put the state on precarious financial footing if that trend continues.
The state’s individual income tax collections made up about one-third of the state’s $13.3 billion tax collections last year, and a 0.25% reduction is estimated to cost the state about $240 million annually.
Several GOP-led states have pushed for aggressive tax reductions that swept across states last year and have continued into 2023 — even as some warn that it might be wise for states to hold on to record large surpluses amid economic uncertainty.
Oklahoma also has an unusual provision added to its state constitution by voters in 1992 that any tax increase must be approved by a three-fourth’s vote of both legislative chambers, a feature that makes it extremely difficult to raise taxes during times of economic hardship.
With a hole in its budget of more than $1 billion in 2018 and a looming walkout of public school teachers, the Republican-led Legislature narrowly approved an increase in taxes on motor fuel, tobacco and energy production that has also played a role in the state’s growing revenue.
veryGood! (36135)
Related
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- 'The Black Dog': Taylor Swift announces fourth and final version of 'Tortured Poets'
- The enduring story for Underground Railroad Quilts
- NASA SpaceX launch: Crew-8's mission from Cape Canaveral scrubbed over weather conditions
- Highlights from Trump’s interview with Time magazine
- Photos show train cars piled up along riverbank after Norfolk Southern train derails
- Body parts of 2 people found in Long Island park and police are trying to identify them
- Georgia teen critically injured after police trade gunfire with a group near Six Flags
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Georgia’s largest county is still repairing damage from January cyberattack
Ranking
- New Zealand official reverses visa refusal for US conservative influencer Candace Owens
- Barry Keoghan Cheers on Sabrina Carpenter at Taylor Swift's Eras Tour in Singapore
- South Carolina Poised to Transform Former Coal-Fired Plant Into a Gas Utility as Public Service Commission Approves Conversion
- NASA SpaceX launch: Crew-8's mission from Cape Canaveral scrubbed over weather conditions
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- United Nations Official Says State Repression of Environmental Defenders Threatens Democracy and Human Rights
- 'Everything is rising at a scary rate': Why car and home insurance costs are surging
- Trader Joe's recall: Steamed chicken soup dumplings could contain pieces of hard plastic
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Medical incident likely led to SUV crashing into Walmart store, authorities say
A 4-year-old Gaza boy lost his arm – and his family. Half a world away, he’s getting a second chance
From spiral galaxies to volcanic eruptions on Jupiter moon, see these amazing space images
Nearly half of US teens are online ‘constantly,’ Pew report finds
Where are people under the most financial stress? See the list of top 10 American cities
Kyle Larson again wins at Las Vegas to keep Chevrolet undefeated on NASCAR season
LeBron James becomes the first NBA player to score 40,000 points