OKLAHOMA CITY (Nov. 20th) – Sen. Micheal Bergstrom, R-Adair, has filed Senate Bill 1, a tax reform proposal designed to reduce Oklahoma’s income tax rates in a responsible and measured way.
Under SB1, the state’s marginal income tax rate will be reduced by 0.25 percentage points across all income brackets. Future reductions are tied to revenue growth, with the Board of Equalization tasked with determining if total state revenue has increased by at least $400 million compared to the fiscal year before the most recent tax cut. Each time this benchmark is met, another 0.25 percent reduction will be triggered, continuing until the top marginal income tax rate is zero.
To protect the state’s financial health, the bill includes safeguards to delay tax cuts during times of revenue failure. If a shortfall occurs after a tax cut has been triggered but before it takes effect, the reduction will be postponed until revenue growth resumes. Additionally, starting in 2035, the $400 million benchmark will adjust every ten years to account for inflation, ensuring the plan remains economically viable over time.
“I’m proud to champion a policy that supports hardworking Oklahomans and promotes economic growth,” Bergstrom said. “This measured, step-by-step approach ensures that our state remains on a sound financial footing while giving families and businesses more of their hard-earned money back.”
SB1 can be considered when the 2025 legislative session begins on Feb. 3, 2025.
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