Confusion Over Capital Gains: What It Is, Why Legislators Are Hesitant
The capital gains tax has been getting a lot of attention lately because it’s one of the demands the OEA is making to end the walkout.
But there’s a lot of confusion about what capital gains is and why lawmakers don’t want to consider it.
The capital gains tax is the tax you pay on the profit of the sale of land or stocks. That is taxed at a different rate than regular income, but there is an effort to change that.
Republicans and democrats both originally agreed to eliminate the capital gains exemption, raising nearly $120 million per year for the state, but it was removed in the final deal because republicans would only agree to an increase in the gross production tax if capital gains were removed.
State Representative Mark McBride says “capital gains was never part of any agreement. It was part of a larger agreement that we took different pieces out.
“What I was told personally and that’s capital gains would be run separately,” said State Representative Forrest Bennett. “I’m not blaming anybody for misinformation. I just think it was a misunderstanding.”
House democrats say they would be on board with the capital gain tax if agriculture is exempted.
The Senate already passed the exemption, but leaders say it wouldn’t make an impact on the 2019 education budget. They say the nearly $3 billion budget is a done deal.
Lawmakers say that’s where there seems to be a disconnect with teachers and the Oklahoma Education Association.