Governor Kevin Stitt’s proposed income tax cut in Oklahoma will cost the state much less than originally estimated, according to the Governor’s Office. The Oklahoma Tax Commission projected a fiscal impact of about $202 million for the 2026 fiscal year, significantly less than the estimated $660 million calculated by the Oklahoma Policy Institute. The proposed tax cut aims to reduce personal income and corporate tax rates by 0.5%, with the corporate income tax expected to see a $37.4 million impact.
Some lawmakers have expressed skepticism about the proposed cuts, as the state budget for agencies will have about $191 million less to allocate this year. The Oklahoma Policy Institute has high confidence in its projections and believes that the tax cuts may result in less state funding available to meet essential needs as the population grows. Between 2020 and 2024, Oklahoma’s population grew by less than 136,000 people.
Despite the potential implications of the tax cuts, it only takes a majority to cut taxes in Oklahoma thanks to State Question 640, a measure passed by voters in 1992. The Governor’s Office remains optimistic about the tax cuts and hopes that they will benefit Oklahoma taxpayers in the long run. Lawmakers are expected to deliberate on the proposed cuts during the upcoming session. For more information, contact Editor Janelle Stecklein at info@oklahomavoice.com.
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