Stitt Calls for Grocery Tax Elimination Again, Senate Raises Recession Concerns

Governor Kevin Stitt took the south steps of the Capitol on Tuesday morning to call for inflation relief during the upcoming special session. After lambasting President Biden for inflation, he called on the Legislature to eliminate the state grocery tax.

Stitt pointed out that the state now has nearly $3 billion in savings and expects to see another $1 billion surplus this fiscal year. He also outlined how much more common grocery items cost Oklahoma families.

While the House did pass a handful of grocery tax elimination bills during the Third Extraordinary Session in June, the Senate did not take up those measures because of a procedural move by the House led Senate leaders to believe those bills were effectively dead.

Even as Stitt has renewed his call for eliminating the grocery tax, Senate leaders are showing concern about recession.

“Philosophically, I am for lower taxes,” said Senate President Pro Tem Greg Treat. “Last year, I championed tax cuts and the members in the Senate were able to send responsible tax cuts and inflation relief to the governor’s desk. I’m proud to be part of the leadership in the state of Oklahoma, who has contributed to our current record savings, made critical investments into essential services, while living within our means. As we enter a recession, we must remember just a few short years ago we were scrambling with a $1.3 billion shortfall. We must be mindful and do tax cuts the right way. That is why I have appointed a tax policy working group. The members of this group are making serious strides to a long-term, sustainable plan to responsibly cut and reform taxes in our state.”

Senate Appropriations Chair Roger Thompson also advices a more cautious approach.

“Economists predict this recession is going to be durable and painful,” said Thompson. “We have lived through years where we’ve had $1.3 billion shortfalls. We don’t want a repeat of those years. Looking at tax cuts holistically and taking a deliberate approach is the best way for us to do tax reform.”

During his news conference Stitt did push back on the idea a recession could impact Oklahoma’s economy, citing the oil and gas industry’s boom and the economic diversification underway in the state.

You can view Stitt’s news conference below.