OKLAHOMA CITY (AP) – Gov. Mary Fallin says her failed plan to drastically cut and eventually eliminate Oklahoma’s personal income tax was doomed in part by intense lobbying on behalf of special interest groups to keep hundreds of millions of dollars in tax credits, deductions and exemptions that had been marked for elimination.
In an interview with The Associated Press a week after the Oklahoma Legislature adjourned its 2012 session without agreement on a tax cut plan, Fallin said the lobbying swayed some lawmakers away from eliminating tax credits and exemptions to pay for the income tax cut. The tax cut plan’s supporters believed new tax rates would result in economic growth and ultimately benefit the state.
In spite of the tax plan’s failure, Fallin said she is not abandoning the proposal and will work with members of the House and Senate this summer and fall to build consensus on a tax cut before the Legislature convenes in 2013.
“I think it will still be a topic of discussion next year. There were different elements of my plan that were widely accepted,” Fallin said in Friday’s interview.
“It’s my job as governor to set a vision,” Fallin said. “I proposed bold income tax reduction. My plan was to allow Oklahoma taxpayers to keep more of their hard-earned money. Part of the legislative process is debating that plan.”
In her State of the State address in February, Fallin proposed cutting the state’s top income tax bracket from 5.25 percent to 3.5 percent and impose a revenue-growth trigger that would further reduce it by one-quarter of 1 percent in each year state revenue grew by at least 5 percent until the income tax was eliminated.
By April, Fallin conceded the plan would not be adopted because of opposition to eliminating dozens of tax credits for businesses and tax deductions for individuals that would supplement the lost revenue. Alternative plans were also rejected.
“Not the most productive way to address tax reform,” Fallin said.
Tax credit reforms that failed during the legislative session include an extension of the tax credit moratorium for another two years, a vote of the people to establish tax credit criteria in Oklahoma’s constitution and a proposal to end the transferability of tax credits.
The Republican governor said the success of lawmakers in Kansas in passing legislation to reduce that state’s income tax rate from 6.45 percent to 4.9 percent for 2013 will place more pressure on Oklahoma lawmakers to take action.
“I still believe a majority of Republicans are for income tax cuts,” Fallin said.
Fallin said she also will continue working on two other agenda items that were also rejected – bond issues to repair Oklahoma’s state Capitol and to complete the American Indian Cultural Center and Museum.
Oklahoma News
June 3, 2012
Fallin: Lobbyists doomed tax cut
- Oklahoma News
-
- Time waning for legislators to tackle Oklahoma tax credits
- State AG sought to delay Monday’s regional haze hearing
- Oklahoma lawmakers near passage of DNA testing bill
- Board denies clemency for inmate
- State Senate unveils $80M plan for 2 new museums
- New hepatitis case in public health scare
- Health reforms penalize some Native Americans
- One trial for man in deaths of Oklahoma girls, woman
- Muldrow board approves removal of 10 Commandments
- New law increases driver's license fee by $12
- More Oklahoma News Headlines




