State House passes income tax cut plan
Thursday, March 17th 2005, 6:05 am
By: News On 6
OKLAHOMA CITY (AP) -- The Oklahoma House Wednesday approved a tax reform bill that includes Governor Brad Henry's $163-million dollar tax cut package.
Without debate, the state House voted 100-to-1 for House bill 1547 that House Speaker Todd Hiett said will make permanent a plan proposed by Henry to provide $100-million in tax rebates for taxpayers in 2005.
Henry's plan would provide rebates to taxpayers each year there is surplus revenue that cannot be deposited in the constitutional rainy day fund.
The House-passed plan cuts the state's maximum income tax rate from 6.65 percent to 6.25 percent beginning next year. Revenues would be reduced by about $100-million a year.
Hiett says the income tax is a deterrent to economic growth and places the state at a disadvantage with adjacent states where tax rates are lower.
The state ranks 18th highest among states levying individual income taxes.