The Oklahoma House overwhelmingly passed House Bill 2032, a measure that will give Oklahomans much needed income tax relief.
HB 2032 calls for the current 5.25 percent personal income tax rate to be reduced to 5.0 percent in 2015. A second cut will take place in 2016 resulting in the personal income rate to be lowered to 4.85 percent. Oklahoma Republican leadership supports the tax cuts due to their commitment to reduce the tax burden on citizens and to soften the blow from tax hikes imposed by the federal government.
“Since we began reducing our state income tax, we have seen record revenues in Oklahoma,” said House Speaker T.W. Shannon. “Hardworking Oklahomans should keep more of their hard earned money because they will either save it or spend. That is how you grow an economy. Unfortunately, the leadership in Washington, D.C. fails to see this.”
Over the past 15 years, Oklahoma has reduced the income tax rate from 7.0 percent to 5.25 percent a reduction of roughly 25 percent. Since the legislature began cutting the tax rate, Oklahoma has seen a 47 percent increase in revenues from $1.9 billion to $2.8 billion.
“I applaud my fellow representatives for standing up for the people of Oklahoma,” said Speaker Shannon, R-Lawton. “Oklahoma is continuing to prove that conservative principles lead to prosperity.”
HB 2032 will now go to the desk of Governor Fallin to be signed into law.