Tax cuts will continue to be a subject of debate for lawmakers in the upcoming session as House Speaker Charles McCall has set the House’s agenda with a slate of bills. The bills target personal income tax.
McCall says now is the time to provide tax relief.
“Everyday Oklahomans continue to feel the effects of destructive federal economic policies on their wallet, and they desperately need relief,” McCall said. “The House has passed numerous tax cut bills to the Senate during multiple regular and special sessions throughout the last three years, and these new bills represent our latest attempt to get meaningful tax cuts passed and to the governor’s desk. Our state is in a strong position both economically and in regards to savings, so now is the perfect time to pass tax cuts and let the citizens of Oklahoma keep more of their hard-earned money.”
The bills filed by McCall are:
HB 2948 – Corporate income tax phase out over five years.
HB 2949 – Flat rate 4.25% personal income tax effective Jan. 1, 2024; rate imposed on taxable income amounts above specific figures based on filing status.
HB 2950 – .25% personal income tax decrease effective Jan. 1, 2024, and following tax years.
HB 2951 – .25% personal income tax decrease for 2024 and 2025, with rates to restore to current level (current rates and brackets) for 2026, and following tax years.
HB 2952 – .50% personal income tax decrease for 2024 and 2025, with rates to restore to current level (current rates and brackets) for 2026, and following tax years.
There are two other previously passed House Bills awaiting Senate action which can be taken up during the next legislative session. House Bill 1953 changes the personal income taxing framework to a flat rate system. The initial rate would be set at 4.25%. House Bill 1954 provides a half percent personal income tax decrease starting January 1, 2024, and the following tax years.
