Governor Brad Henry wants to exempt retirees from income tax
Wednesday, February 1st 2006, 10:32 am
By: News On 6
OKLAHOMA CITY (AP) _ Governor Brad Henry wants to give many retirees in the state a full exemption from the state income tax.
The proposal distributed at The Associated Press' annual Legislative Workshop also calls for a back-to-school sales tax holiday and a reduction in estate taxes for ``collateral heirs.''
The program for retirees would exempt single tax filers with incomes of $25,000 or less from the state income tax. Married retirees with incomes of $50,000 or less would also be exempt.
Most retirees currently get a $10,000 exemption.
The proposed sales tax holiday would run in August at the same time as a similar tax holiday in Texas that often draws Oklahomans to the Lone Star state to shop.
The estate tax plan would extend an estate tax exemption on inheritances to ``collateral heirs'' such as brothers or sisters. Currently only the spouse and children qualify for an exemption on inheritance taxes.